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

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.”
(More Blockbuster stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.