Netflix entered the move rental industry in 1997, using a unique business model. Brick-and-mortar video rental stores like Blockbuster carried a limited selection of movies, which customers had to come and pick up physically. Moreover, these stores tad strict lateness policies. Customers had to pay substantial fees if they did not return movies on time, which generated a substantial portion of the stores revenue. In contrast, Netflix had a large selection of movies. Customers made a list of which movies they wanted to see and Netflix then sent the movies in the mall one or two at a time. As one movie was sent back by a customer, Notrlik would send the next movie on the list to the customer. Eventually, brick-and-mortar video rental stores mimicked this business model Blockbuster introduced a mail-order video rental system that rivalled Netflix's. However, it was too little too late. Subsequently, traditional brick and mortar video rental stores slowly went out of business. Netflix's entry into and subsequent disruption of the video rental business is an example of: Imitative new entry Planeering new entry Adaptive new entry Innovative new entry