The Decline of Blockbuster...What Happened?

Опубликовано: 21 июн 2017
Today Blockbuster is effectively gone, but there was a time when they were the standard for movie rentals. This video takes an in depth look into the rise, decline, and attempts to answer the question of what exactly happened to Blockbuster.
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Комментарии

  • High-speed internet.... THAT'S what happened! 😳

  • Netflix movie mail delivery is still a steal.

  • im surprised with hollywood producing so many shitty films these days that movie theaters are even still in business

  • the "No more late fees" was possibly their worst business move

  • blockbuster went under cause they kept rippin' ppl off

  • Blockbuster was life back during the 90s and it just felt so good when you went to the actual store and was walking in the aisles looking at movies and games to rent it was like nothing else at the time. I always loved on Fridays when you would tell your parents that you wanted to rent a certain game and then they would get it for you during the day and then when you got home it would be there waiting for you to play during the weekend.

  • Even when I was just a child during the mid 2000s, I still remember going to video stores, such as Blockbuster and Hollywood Video. I also remember VHS tapes

  • Who remembers the blockbuster video store

  • I use to rent my video games from their every friday back in the day and get popcorn from their

  • Netflix is the real reason why Friendly Customer services. Blockbuster to die...

  • blockbuster is in alaska because of the bad internet (i heard somewhere). because of the internet speed there renting is still prefered over streaming.

  • Hollywood Video was how I was introduced to Studio Ghibli through Castle in the Sky. They had it as a $1 rental. I remember scrounging up change to rent that movie over and over again. I loved it. The memories. 💖

  • Alaska continues to have video rental stores because most of the state doesn't have access to internet speeds that can process Netflix due to the lack of a network there (or didn't at the time)

  • The Decline of Netflix... What Happened. Cuties

  • I do think the Netflix default answer is overblown, the amount and quality of pirate streaming sites and torrent sites really cut into them a lot as well.

  • Mostly in Alaska for some reason? You can't imagine why that might be?

  • NETFLIX is nice, but we know it will go away soon

  • I wish I knew blockbuster better. By the time I was eight the one in my town had closed and the blockbuster Express was bought out a year later by redbox.

  • F blockbuster

  • I helped build the local store here and now it's a Verizon phone store.

  • I saw Laverne from Scrubs in the Blockbuster ad. Anyone else spot that?

  • How did family video last longer than blockbuster

  • I used to buy concert tickets here. maybe that was some of the other.

  • In the UK we had a company Choices UK. They were similar to Blockbusters. They were founded in 1985 to capitalise on the home video market. They had three divisions: High Street retail, wholesale VHS and DVDs supplying some supermarkets and smaller shops and a mail-order service via catalogues in their stores and through the post. This helped them to become the second-largest retailer of video rental in the UK. Even when the internet rolled into view, they started offering, though not straight away, a DVD by post service. But in April 2007 they were showing signs of cracks. They issued a profits warning citing "unseasonable fine weather". This caused their share price to tumble from 45 pence to 22.5 pence per share. The cracks became a fissure in August 2007 when they called in the administrators with debts of £13 Million. Findel plc acquired the wholesale and mail-order side of the business on behalf of their sister company The Webb Group but left the retail stores well alone. The administrators, PricewaterhouseCoopers announced they were confident they could find a buyer and keep the jobs, but they did close the least profitable shops. On 17 September 2007 Blockbuster GB purchased 59 remaining Choices UK stores and saving 450 jobs. As part of the transaction, the 59 Choices UK stores were rebranded as Blockbuster. Weirdly the Choices UK website is still live. On 2 March 2012 The Webb Group announced they were calling in the administrators due to "The Companies did not have the money to pay its liabilities as and when they fell due."

  • The internet is the answer.

  • I worked for Blockbuster in 2007. At the time we had mailers just like Netflix did. In fact, I remember having a mail-in subscription to both Netflix and Blockbuster at different times during college.

  • *NETFLIX IS CANCELLED ... QUICK BLOCKBUSTER COME BACK*

  • I refuse to let Blockbuster die.

  • I miss Blockbuster! I honestly wish we could go back to those simpler times. I know that technology can be good and it's necessary to stay up to date with it but I wish it would go back to how things were in the late 90's

  • My childhood just faded.....

  • update: Blockbuster is in its final days - going on to their site now indicates that only ONE location lives at this time. RIP Blockbuster.

  • This video is all about Netflix causing the decline of Blockbuster. That's not how it happened for me. For me, it was 1) The late fees they wouldn't forgive even if you returned a movie at 9:01 pm that was due back at 9:00, even if you were in line at 8:45; and 2) The Redbox kiosks had movies for $1.00 for 24 hours instead of $3.99 for a few days. Yes, Blockbuster rented out for a longer time period, but it never bothered me to rent a Redbox movie, watch it, and return it the next day by 9 pm. I only wanted to watch it once, anyway. Netflix was mail order at that time, so that wasn't the reason I quit using Blockbuster - I didn't like the first Netflix/mailbox/subscription service for physical DVDs anyway. Always thought it was more of a pain to remember to return. Late fees and cheaper movies at Redbox was the reason to quit Blockbuster. Redbox was on every corner even in Springfield, OR and open 24 hours for rentals or returns (still is) and Blockbuster had 1 location that closed at a certain time of day. Even if you used the drop box, you would get hit with the late fee because they would hit you with it as counting the movie returned when they logged the movie back into their inventory. Then, when you wanted to rent again, they wouldn't rent to you unless you cleared up your late fee. Many times I disagreed I owed a late fee at all and left the store without taking my selections or anything else. Several times I boycotted them all together for months at a time because of that. I also certainly didn't appreciate the $2.00 candy bars placed at children's eye level while we waited in the long check out line either(!) I'll state it plainly - they pissed a lot people off. They had a really high level of "customer no-service." That certainly and most assuredly hastened their going out of business. That alone made me not care if they went away. Eventually, with higher and higher speed Internet and streaming in the home taking over - this whole conversation we're having has become moot, hasn't it? I do see people now and then using a Redbox kiosk, I haven't in years unless returning a movie or game for someone else in the house (usually a game for one of the kids). The Blockbuster is still here, a big empty vacant store - no one has ever moved in with a new lease since the day they left years ago. Some of the shelves, etc., the drop box, even the strip mall "BLOCKBUSTER" sign (flipped around and upside down) is still on the marquis waiting for the day a new tenant moves in. The only time we ever used Blockbuster near the end was for game rentals for the kids game consoles. Then finally, to snatch up some of their close-out going out of business product. We did that again when Hollywood Video went way. Times and the technology changed. Oh, yeah, and I spent my entire youth through adulthood at Tower Records, another victim of our changing technology and the times we are living in.

  • Same thing that happened to all Video stores, the internet

  • Hollywood was my go to

  • I remember going to blockbuster to rent movies and to buy popcorn bucket. I also buying movies and video games that they had for sell. People mention Netflix but forget to mention gamefly

  • Used to spend a lot of time in the Anime section of blockbuster, now I spend a lot of time on Crunchyroll. I miss the video store 😭

  • Oh, Company Man, you've really done it now you rabid cur! You can't say Blockbuster is dying they have like two stores. This is hyperbole of the highest order! There is now way Blockbuster will die, ever! Your video is terrible by the title alone and I am ashamed that this channel almost has 1 million subscribers. Unsubsvducdvc98feug-er=g-re90vueaqifrhui34tjtoj=-fo-gf In all seriousness, good video.

  • Got my first Cod from blockbuster didn’t they go extinct like in 2013-2014

  • The “other” was the dang late fees

  • Good times

  • I hated the one I went too longest lines ever and was slow to check out.

  • Blockbuster will always have a special place in my heart I grow up on blockbuster nothing won’t ever be better than blockbuster it was very special I won’t ever forget blockbuster 💞

  • i remember me, my dad and my sister would get scary movies and subway and watch them all night😔

  • They turned the on where I live into a specs liquor store.... it was so fun going to blockbuster

  • There needs to be A Decline of Cannon Films video

  • Family Video came half a decade before blockbuster, so if anything, blockbuster is the “cheap imitation”.

  • It was the biggest rip off in America, good let them rest in peace 🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮🤮

  • I assume "other" % is the rewards program.

  • I worked at blockbuster for 7 years towards the end. It was clear to us how this happened. Lol

  • In Korea they have cool rental rooms, where u can rent a movie or game and play it in a room u rent per hour. Kind of like a karaoke room. You can also get snacks ordered to ur room and such. I would totally be into it if Blockbuster were revamped into this model.

  • When u realize COVID maybe responsible for movie theatres to dissapear forever 😳

  • I very much miss the experience. Streaming is convenient, but it feels... cold.

  • There was a lot that contributed to the eventual decline of BBV: 1) Parent company Viacom bringing in CEOs that expanded the business from just video and game rentals. This included flooding sales floors and endcaps with a lot of tie-in merchandise and toys that didn't sell until it was heavily discounted in bins, and also included BBV employees being asked to sell DirecTV subscriptions in stores. That drove a lot of staff away, as did constant pre-sales of new priced-to-sell movies. Another corporate sore spot with staff was the introduction of an Entertainmemt Tonight-type in-store loop video that had to be played ongoing from opening to close. The loop tapes were similar to what you see now before the playing of trailers in movie theaters, and staff and customers alike were having sensory overload. 2) Late fees and charging customer's credit cards. BBV made almost annual revisions to its late fee policies, including empowering clerks to make the final business decisions. 3) Hiring the wrong store teams that didn't understand how to meet customer demand and staff at night and on weekends, or cared more about their free rentals than helping the customer. BBV started installing queue lines to help manage ever-growing weekend evening lines. 4) Viacom (parent company of BBE) taking on 20th Century Fox in its revenue sharing model in 1998. Every movie studio entered into a revenue sharing model with BBE and Viacom between 1995 and 1998 except for one - 20th Century Fox, and in response, BBV shorted per store orders on Fox new releases like Alien Resurrection, and customers freaked when they expected to find a wall of a new Fox release only to find a single row. BBV and Fox would eventually bridge, but the damage was done. 5) Around the same time came the introduction of DVD rentals and suddenly, there was as much demand for new release titles on DVD as there was for VHS. The problem was that BBV did not have a strategy to manage so individual store managers made local decisions, including selling new and used DVDs in-store. The VHS tape quickly became a dinosaur within a period of 2 years, leaving the company with millions of units of future Goodwill donations. 6) In the mid-1990s, Viacom had the idea of selling key BBV markets to franchise owners. Many of your local BBV were actually franchise stores, which did not have the same standards or deep pockets as a corporate location. And that invited competition from other video chains. 7) Other factors included high in-store theft (loss), especially with video games; varying levels of customer service; the exploding video game market that BBV didn't really understand and couldn't keep up with the emerging market, DVDs being available at a sell point in every retail chain from CVS to Wal-Mart, and BBV competing with itself in some markets by introducing hybrid video/music and video/game stores in the same markets as BBV stores. 8) Finally, and not covered in this video, BBV did have a DVD mail-at-home service that rivaled Netflix and it was managed horribly. That was the last straw for me as I maintained both services only to see Netflix grow and adapt and watch BBV online bring the in-store mentality to the online market. Customer service was abysmal and their lack of understanding of the new market was the final straw for me, and that model folded soon after.

  • Coronavirus put Blockbuster out of business in the early 2000s and Netflix’s stock rose rapidly.

  • The internet fucked everything

  • I think a primary reason for their failure was the use of "outside consultants" to build the new key technology they needed. Whereas with Netflix I expect there were very few consultants and the key people to make the technology work and happen were part of the team with enough power and incentives to make quick and iterative tests and changes to improve the machine faster than Blockbuster could have ever done with the longer feedback loop of using consultants. So they didn't realize that with the acquisition of Netflix for $50M they would have been acquiring the people of netflix that could make new changes happen faster. Similar thing happening with Tesla where they have a shorter feedback loop within their company vs the larger auto manufacturers which allows them to move faster and break ground faster. At a conceptual level those who can adapt fast will do better than those who cannot.

  • My local library started providing VHS tapes and DVDs for check out back in the early 2000’s and I’ve heard that many other libraries started doing the same thing at around the same time. I’ve always wondered what impact if any that had on Blockbuster’s sales.

  • 20 oh 3 ? Why not just say 2003

  • We visit the Oregon coast every summer. We have good friends in Bend. One of these days I want a picture of that last Blockbuster.

  • Ya I’ll never forget going to blockbuster on a Friday night with my parents. Great memories. I remember renting all the fridays the 13th movies

  • pretty cool video about blockbuster

  • Theaters are next covid 2020

  • There was a video place called Erolls video,my brother n law was the manager 😃they had lots of movies 👍🏽😆back in the late 80's😃😁👍🏽

  • Imagine if the founder of Netflix was complaining about the late-fee and the Blockbuster manager said "Oh yeah? What are you going to do about it?"

  • Paraphrasing: “if Netflix were able to stream new movies directly to homes, theaters would become obsolete” Also: “if I were to tell you 15 years ago that video rental stores were to become onselete in 5 years, you wouldn’t believe it” So this video came out in 2017 and I am commenting in 2020, where corona virus has led to studios to begin experimenting with debuting new movies on streaming services. I think people in 2017 could imagine that at some point in the future something like this would happen, but not just 3 years away and not due to the circumstances that actually caused it to. It just goes to show how quickly things can change.

  • 2021: the decline of movie theaters: you know what happened

  • Remember the pokemon snap and pokemon stadium kiosks

  • If the wifi breaks, blockbuster

  • I have a lot of amazing memories at Blockbuster. Found my favorite Video game series after Renting it from and going with my Aunt to find some movies for us to watch, picking up a nice Hot Domino's pizza for dinner, And just relaxing on a Friday night in June. I love those memories

  • I still have a family video 20 minutes away

  • ha, 10:13 Paul Finch getting ready to have sex with Stifler's mom

  • I'm honestly shocked that RedBox is still a thing

    • Not all streaming companies have specific movies you want to watch and mail is slow. Some people have a Redbox in a store right next to their home. It could be more convenient for the time being until they get the Netflix DVD they want (if it's not on streaming anywhere) or they may not watch movies and TV much, so a $3-$10 rental (depending on how many rentals) one time seems more reasonable than a subscription that you'll rarely use. Another example: I watch Every After High, Avatar, Inuyasha, and The Last Kingdom all on Netflix, but I have to watch My Hero Academia and The Good Doctor on Hulu because Netflix doesn't have them. I have to finish Ever After High on RU-tv because only the series movies are in Netflix, but not the episodes. I watched Anonymous Noise on Amazon Prime because it was nowhere else. Then I wanted to watch Crybaby with Johnny Depp. Couldn't find it. Had to rent it. Just some examples in understanding why Redbox should still exist.

  • They were the worst ice cream

  • What about Block Blister??? It's much better!!!!

  • I loved the store in the uk. Until they started charging loads for a new release and you could only rent it over night

  • I would've loved to work at a video rental store

  • 🅱️L🅾️CK

  • sexscenes

  • Netflix Netflix

  • streaming ftw

  • So excited to watch

  • So I know this video is a few years old but one big issue you forgot to bring up was Blockbusters War with Nintendo Blockbuster was in a huge legal battle with Nintendo

  • What he said at the start....God I remember ALL of this back then!!

  • Blockbuster:*doesn't buy Netflix* Netflix:So you have chosen death

  • 11:14 10 dollars pfft yea right

  • I just dont get why family video survived when blockbuster didnt

  • When I was a kid I use to pick out my movies by seeing if there was nudity in it then trick my mom into buying it

  • Watching this again 3 years later during the covid lockdown, yep theatres might go the way of the dinosaur.

  • Let's save you a watch.......the internet happened

  • Do used to be a blockbuster in a small strip mall down the street from me, that which was in walking distance just from my apartment complex. One of the things that which I liked, is I would buy DVDs that which after a certain time, that you could buy! Now the only retarded place to buy them, is on Amazon for Jesus Christ sake’s.!

  • Before Blockbusters there was Erols Videos. Do one on that chain.

  • Just because humans are lazy... The LAST video rental store in Switzerland closed in July 2019 He was called « le cinoche » RIP

  • Needed more porn.

  • Here’s another downfall of BB. No. 1, if you didn’t pay your late fee, at all, us employees were instructed to go into your account and use your CC to pay it for you. No. 2 if you didn’t return a “new release” at all, you pay the full amount of that new movie, which was $100 each for said new release and to include your late fees you acquired! No. 3 employees worked all the holidays. Oh and coming in late late nights to do inventory and get paid your minimum wage of $5.25! No time differentials for working midnights or holiday! So disgruntled employees AND customers. What can I say. It wasn’t just Netflix being their downfall.

  • Did you know there is only one blockbuster store still open till this day?

  • I LICKED Blockbuster when the store was still around

  • I’d still way rather see a blockbuster app on my PlayStation , rather than the net flux one lol

  • N E T F L E X E S

  • I used to get all excited when I found out they were selling some of the old ones! They often had defects and were unplayable (remember adjusting the tracking?).

  • I always forgot my card, or was late returning something. More than once I got bootleg porn.