3 Things That Killed Blockbuster

Netflix takes leading role in company's imminent bankruptcy

By Will McCahill, Newser Staff

Posted Mar 17, 2010 7:17 PM CDT

(Newser) – With Blockbuster, once the dominant US video-rental chain, on the verge of bankruptcy, Daniel Indiviglio takes a look at three crucial factors in the demise of an outfit whose “fate was mostly sealed by its failure to embrace technology quickly enough.”

Netflix: “Its business model merged technology, convenience and good customer service,” Indiviglio writes for the Atlantic—and it doesn’t have the overhead costs of ubiquitous stores, like Blockbuster.

On-demand movies: “It’s a no-brainer” to rent with your remote rather than go through all the effort to go to a store that might not even have the movie you want.
Digital piracy: “There’s little doubt that Blockbuster and others lost millions of dollars in potential rentals when movies were illegally downloaded.”

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Blockbuster is facing bankruptcy. (AP Photo)

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COMMENTS

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Showing 3 of 31 comments

bogey251

Mar 19, 2010 12:28 AM CDT

100 copies of "bob and Larry get married" or some such horsecrap, and I couldn't get "Eastern Promises" by Kronenberg...it was a new release and they had 6 copies. I stopped there 3 times...I noticed it in a REdbox and that was it for Blockbuster. Then I joined Netflix...Game, set, match...

truefreedom

Mar 18, 2010 3:06 PM CDT

They forgot Redbox vending machines located in grocery, conveinent and discount dept. stores, they rent for $1 a DVD vs. $5 a DVD at Blockbuster. Let's not forget Hollywood Video who is suffering the same kind of fate as Blockbuster.

vendetta

Mar 18, 2010 1:13 PM CDT

Torrents. Genie is out ofthe bottle.

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Money • Entertainment • Technology

entertainment • technology • bankruptcy • piracy • Blockbuster • Netflix • movie rentals • online movie rentals • movie industry

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3 Things That Killed Blockbuster