1. They were late to the game. Netflix had already established millions of members before blockbuster tried this. Most blockbuster existing users didn't need to have stuff mailed they were close to stores anyway.

2. Netflix (the mailing system) didn't kill blockbuster. More like netflix's download videos to your bluray or wii, expanding ppv watching from your home on cable/satellite, and finally RedBox.

Getting the shit in the mail was good for people who didn't live near a blockbuster. But people who could go to the store, wtf am going to go to blockbuster and pay $4 when I can go to redbox and pay $1.

Also, blockbuster (the franchise model) could not adapt. Sure blockbuster could compete with netflix to mail movies but pretty sure blockbuster corporate made money from that and not franchise holders. Blockbuster made their money from franchises (like affiliates), they tried to adapt via mailing but that was like inhouse traffic.

The whole "sending in the mail" will be obsolete in a couple years. Who wants to wait a couple days to get a movie, with technology and increasing amount of BW to homes, people want the shit now, and more and more people will be renting right to their bluray etc.

The parallels to adult are uncanny.

They kinda sorta tried to adapt and they did it too late, and they where way too big to survive it. They need to ditch the "franchises" etc...

I think that would have kept them in the lead till now, but if they didn't (or don't) focus on online rentals like netflix is switching to, then they would still be left behind and obsolete.

One day, in the not so far future everyone will have access to an online library of tens of thousands of movies and instead of getting in your car and driving or waiting for something to show up in the mail you will use your remote (or mouse) select any movie just about ever made, and boom its on your tv playing. I saw that coming 10+ years ago, you think with the money blockbuster (was) making they would have been the ones to develop the technology.

I love going in and taking advantage of their 3 used DVDs for $20 deals...built up a huge collection of movies I wanted to own, but didn't really want to pay $20 for...

I'll never forget their big END OF LATE FEES campaign - although it actually wasn't the end of late fees.. what a shit company, good riddance

another torrent victim?

Netflix have stolen the show with their app for the iphone, u gotta move with the times Blockbuster!

With all the little mom and pop video stores they put out of business over the years, some might just look at this as karma.

karma is a bitch especially when you only have yourself to blame for not adapting to the changing times

Great post.

I've been following the Blockbuster debacle for a while now. You knew they were in trouble when they announced that they would no longer charge late fees, yet we then found out that the made something like 700 million per year on late fees. It was going to be nearly impossible to replace that lost revenue.

The mail in system is decent and can offer those close to a blockbuster value (I guess you get a couple of free in store rentals each month), but they can't compete with Netflix. I have had Netflix for a long time. I like them because they have more of the hard to find and independent movies than blockbuster appears to have. Add in the live streaming and it is the best $9 you can spend on entertainment.

I don't think the mailing videos part will die off in a couple of years though. I think it may eventually, but there are a ton of people who don't have their TV's hooked up to their Netflix accounts yet. That will change, but it will take time. Not to mention they would need to get streaming rights to every movie they have and a lot of the newer movies they can't yet get that.

Blockbuster shot themselves in the foot when they took advantage of customers with crazy late fees, kept raising their prices and shrunk their inventory. It is a classic example of letting things pass you by then trying to play catch up which rarely works.

:2 cents::2 cents::2 cents:

Yup, according to the owner of hollywood video here in my little town, the reboxes are what killed him and forced him to close his doors

Blockbuster sucks balls anyway, way over priced. Amazing they've lasted this long.