Why Did Blockbuster Fail

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Introduction Blockbuster was established in 1985. The first store opened in Dallas, Texas with approximately 8,000 movies to rent. The company was a provider of home movie and video game rental services. Later on in the early 2000’s, Blockbuster introduced streaming online movies, video-on-demand, and DVD-by-mail. They also added “Game Rush”, a store-in-store concept where customers can trade in and buy video games and DVD movies. Why did Blockbuster Fail? The process to rent a movie in the past involved physically getting in your car, driving to the nearest Blockbuster, spending the time walking up and down the aisles, reading the back for summaries, paying the cashier, going back home, putting the movie in the DVD player, enjoying the movie and having a set time of days until you had to drive back to return it. If the movie was not returned within the days allocated to rent it, then you would be charged an additional fee. Sometimes schedules and factors that couldn’t be controlled would permit people from not being able to return the movie on time therefore being charged a late fee. If the movie was not returned on time, you were charged as if it were an additional rental, so essentially you were paying double for having it in your possession even if you didn’t…show more content…
As new ways to rent videos came to the market, it could have not been a worse time for Blockbuster! The economic recession lasted from 2009 to 2010 would have already impacted Blockbuster, but especially during this economic recession because of the fact that unemployment was high therefore forcing consumers to spend fewer dollars. Because of lower income, customers looked for the best deal and convenience, which Blockbuster was undesirable since they were unable to keep up with the
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