On August 26, 2010, news media reported that Blockbuster was planning to file a pre-packaged Chapter 11 bankruptcy in mid-September. Here's how Blockbuster went from a retail force to a nostalgic memory. Do Not Sell. The hope was to acquire an already existing video chain. Lest we forget, Blockbuster once operated over 9,000 stores, had 60,000 employees and generated more than $5.9 billion in annual revenue, with a presence in more than a dozen countries around the world, all of which operated as different business holdings. Even announcing plans to waive late fees in 2005 did nothing to soften the blow. Finally he installed it for free in Dallas--providing a convincing showcase for a system he had never fully patented. And if you liked this post, be sure to check out these popular posts: For two decades, Blockbuster reigned supreme as a media giant, but when competition arose in the form of Redbox, Amazon, and Netflix, the company couldn't keep up. In 2009, Blockbuster sold off its Irish operations to Birchall Investments, with the few Xtra-vision stores in the UK being rebranded as Blockbuster. [117] Additional store closures would continue. On October 19, 1985, the first Blockbuster video-rental store opens, in Dallas, Texas. Poor management and the Great Recession were major factors causing Blockbuster's decline, as was the increasing competition from Netflix's mail-order service, video on demand, and Redbox automated kiosks. [citation needed][100] Between November 6, 2013, and January 12, 2014, all 300 remaining corporate-owned Blockbuster stores in the U.S. were closed and the DVD-by-mail program was shut down. Such corrections were also sent to international stores such as those in Canada to prevent further lawsuits. ", "Blockbuster nationwide DVD and game trading program", "Viewership uncertainty causes Blockbuster to cancel awards", "NCR Exploring 'Options' for Blockbuster Express Including Sale", "Wayback Machine: blockbusterexpress.com", "Blockbuster Video Gets Into the Game With Game Rush", "MEDIA; Showdown Begins in Movie-Rental Business; Blockbuster Tries a Remake (Published 2004)", "(PRN) Blockbuster Reaches Agreement to Sell Rhino Video Games to GameStop", "Gamerush is becoming part of the new Blockbuster", "From the Archives: Discovery Zone; a short-lived indoor play zone enjoyed by kids in the 1990s", "Discovery Zone Is Making A Comeback This Month! [37], Blockbuster became a multibillion-dollar company, but Huizenga was worried about how new technology could threaten their business, such as video on demand and the growth of cable television. Dish Network bought the company out of bankruptcy for $320 million in 2011 but despite grand plans, in particular that it might attempt to rival Netflix, the last remaining stores shuttered in 2014 bar one, in Bend, Oregon. [66] The campaign proved controversial, with Associated Press reporting that the new policy actually charged users the full price of the movie or game after eight days which they could cancel by returning the product in question and paying a fee. [94] On May 6, 2011, Keyes resigned as Blockbuster's CEO. For many, Blockbuster wasnt just a video rental store it was an important part of their youth. [209] On November 14, 2013, 72 store closures were announced,[210] with another 62 made on December 5. In early 2013, the company had 528 locations in the United Kingdom. The chain was financially stable with 49 corporately owned stores and one franchise until a lawsuit filed by Blockbuster LLC in 1994 forced the closure of all of the Megahit stores. We will close additional stores." Looking at a rough timeline of the company's history, it becomes clear how early Blockbuster's competitive and financial problems started. SoftBank and Toyota want driverless cars to change the world, Barnes & Noble stock soars 20% as it explores a sale, Why it's time for investors to go on the defense. [187] and re-employed 145 former KPS staff. Located in Bend, Oregon, the independently-owned store has reached a surprising level of fame as "The Last Blockbuster" and it's still open today. On August 31, 2011, the liquidators announced the closure of the remaining 253 Canadian stores and shutting of the entire Canadian unit. David Cook (racing driver) (born 1975), British former racing driver; Other people. Enron also filed for bankruptcy that year, List of retailers affected by the retail apocalypse, "He Began Blockbuster. Cook estimates that he sacrificed about $300 million by not holding onto his stock for a few more years. [60], On or around October 14, 2004, Blockbuster was spun-off from Viacom. David Cook attends FOX's "American Idol" Finale For The Farewell Season at Dolby Theatre on April 7, 2016 in Hollywood, California. [71], On July 2, 2007, the company named James W. Keyes, former president and CEO of 7-Eleven, as the new chairman and CEO. Clayton did not say when these additional closings would happen and only remarked that some stores were unprofitable. Anderson was president and chief financial officer of Cook Data. 1 Power Source, Already Has a New Challenger: Batteries", "Meet the Curiosity-Seekers and Die-Hards at the Last True Blockbuster", "At the edges of America, Blockbuster stores (stocked with actual DVDs) still exist", "Closing Attraction: Eagle River Blockbuster going out of business", "South Anchorage Blockbuster set to close", "The Magic of Blockbuster Video lives on with Dish", "Blockbuster Video Stores & On Demand Movies", "Blockbuster in Sandy, one of 10 remaining in the world, to close", "Australia's last Blockbuster store in Morley, WA closing its doors", "There Will Only Be 1 Blockbuster in America Soon", "There's 1 Blockbuster left in the US and it refuses to close", "The top local stories of 2018; Central Oregon saw news of the weird, scary and political", "You can spend the night in the world's last Blockbuster -", "World's last Blockbuster transforms into '90s-themed Airbnb", "Bankrupt Blockbuster Joins Reddit-Inspired Retail Rally", "Blockbuster signs deal to be exclusive renter for Weinsteins", "Agreement gives Blockbuster exclusive access to new release Warner Bros. films", "Riske Business: Do You Dig on Busterverses? [67], Vintage Stock acquired the Movie Trading Company name from Blockbuster in 2006, and continues to use the name for Dallas-area stores. Morningstar, Inc. All Rights Reserved. Before 2005, this was done through the acquisition of the Movies Plus Group and the conversion of some individual Movies 4U and Movieland outlets. [113][114][115], Although Blockbuster stores could remain open by paying a licensing fee to Dish,[116] there was no longer a corporate entity to provide supplies of branded products, forcing franchisees to design and produce their own. Gallows humour was quickly and inevitably followed by social media blowing up, as users took to social channels to express their conspiracy theories for the deeper reason behind the video rental chain's message. Blockbuster reintroduced late fees in the United States in 2010 under the name of "Additional Daily Rates". To REWIND is divine!". Enter a date in the format M/D (e.g., 1/1), https://www.history.com/this-day-in-history/first-blockbuster-store-opens, Stock markets have the largest-ever one-day crash on "Black Monday", John Z. DeLorean is arrested in $24 million cocaine deal, Take on Me music video helps Norways A-ha reach the top the U.S. pop charts, Guildford Four are cleared of IRA bombings, Editorial accuses Thomas Jefferson of affair with enslaved woman. Cook was searching for another source of revenue when his wife, Sandy, a big movie fan, suggested the video rental business. Late fees of 0.70 to 0.90 per disc applied if a disc was not returned on time. Kenneth Ward Anderson, who co-founded Blockbuster Video almost 35 years ago in Dallas with David P. Cook, has died at age 87. Antioco scrapped late fees in January, started an internet service, and decided to keep the company independent, while Icahn wanted to sell out to a private equity firm. A Blockbuster store in Anchorage, Alaska. The information and photos presented on this site have been collected from the websites of County Sheriff's Offices or Clerk of Courts. The most obvious application was for railroad cars; Cook hit upon another when he found himself fuming at a tollbooth. Fans of Blockbuster spotted a recent change to blockbuster.com. The acquisition was completed on April 26, 2011. Five years later, Viacom took Blockbuster public, as the number of stores reached 6,000 globally. At the time of its Chapter 11 filing, Blockbuster said it would keep its 3,300 stores open;[87] however, that December it announced it would close an additional 182 stores by the end of April 2011 in attempts to emerge from bankruptcy. Now hit your shot,'" offers Cook. Non-UK stores were unaffected by the administration, and continued to trade as normal. After working in computer software, Cook decided to open his own video-rental store in Dallas, Texas. With this pricing scheme, rentals were once again limited to a certain number of days and accrued pay-per-day rates after the days allocated are exceeded. This frustrated many customers, including Netflix founder Reed Hastings. In addition to benefiting from a lower initial price, Blockbuster also capitalized on the fact that movies were generally not available for purchase at affordable price points during initial release periods. In return, a new system would be introduced where customers could return their movies to a Blockbuster store. [226] Although some Blockbuster UK advertisements claim that the company no longer charges late fees, the fine print and/or voiceover clarifies that rentals will be charged an extra pound for every additional night. There were four Block plans available with prices ranging from R$34.90 to R$79.90. Blockbuster began game and DVD trading in selected U.S. A small chain called Megahit Video began in Canada in 1986. The Bend, Oregon Blockbuster couldn't afford the millions of dollars that a real Super Bowl ad would have cost. [197], In September 2015, all remaining Blockbuster retail stores (263 in total) in Mexico had been converted to "The B Store", and the floor space dedicated to video rentals reduced from 70% to 20%, the remaining space being used for general technology and electronics sales. [11][92] In April 2011, Dish Network told the U.S. Bankruptcy Court that it needed more time to negotiate with landlords in an effort to keep more than 600 Blockbuster stores open.[93]. Partial support for in-store exchange was added in April 2005 with the launch of an "OnlineXtra" service. BOND: $854 #3 Fail To Appear On Citation. Just seven years later, he sold the company to Viacom for an eye-watering $8.4 billion and the corporation took it public in 1999. [153], In Australia, the first Blockbuster store was opened in 1991 in Melbourne. The cast, led by Randall Park and Melissa Fumero, fumbles their way through keeping the location open. [63] After several extensions of the tender offer, Blockbuster withdrew due to FTC opposition. [152] In 1995, Blockbuster bought more stock to take control of the company. After working in computer software, founder David Cook . He also had the idea of a 2,500-acre Blockbuster sports and amusement park in Florida, something Blockbuster was still considering as late as August 1994. But mistakes, such as declining to acquire Netflix when it was just a startup, led the company to go bankrupt and close almost all of its stores. Cook's experience with managing huge databases proved helpful in driving innovation within the industry. There were a variety of video rental stores, but one in particular became an icon of the era: Blockbuster. On January 16, 2013, Blockbuster placed its United Kingdom subsidiaries in administration, putting over 4,000 jobs at risk. [228][229] Support for online sales of used movie and game discs was added in July 2011. That year, Blockbuster had 9,000 stores globally, Insider reported, and it earned $5.9 billion in revenue. In an attempt to wipe out $1 billion of debt, in 2010 Blockbuster filed for bankruptcy and was delisted with revenues of just $120 million from its depleted U.S. store estate. The studio was to receive 40% of rental revenues in return, which was the same deal already in place for VHS rentals. [180][181] The 12 RecycleIT stores were bought by the company Blue City. Morningstar: 2018 A father and daughter look for movies at Blockbuster. The company hired Jeff Stegenga to be its chief restructuring officer (CRO) in an effort to satisfy bondholder demands and recapitalize the company. [80], On February 10, 2010, Blockbuster announced that it would cease all its operations in Portugal, closing down 17 outlets and leaving over 100 workers unemployed. She believes that nostalgia for the once ubiquitous brand is the driving force behind her store's financial health and in 2020, Netflix (ironically) aired a documentary about the Bend location called The Last Blockbuster, which highlighted the droves of tourists that visit each year. The critical innovation behind Blockbuster's business model resides in its technology. The following year, Dish Network bought the company out of bankruptcy for $320 million in hopes of keeping 600 stores open. [citation needed], Blockbuster stores followed a strategy of emphasizing access to the most popular new releases, obtaining early access and stocking many copies of the new-release titles, with a relatively narrower range of selections than traditional independent video stores. He left with a $24.7 million severance package. Upon visiting Blockbuster.com, a screen with the company's logo appears with the tantalizing promise "We are working on rewinding your movie.". In March 2010, Blockbuster began "Additional Daily Rates", or "ADRs", for rentals not returned by their due date in the United States, having already used this procedure in other countries such as the UK for many years. A gumball machine near the front register of Blockbuster. Five years later, Viacom took Blockbuster public. (Milton . "I haven't found anybody who doesn't think Blockbuster did a whole lot better under Wayne--including me.". Explaining the stories behind the headlines, Blockbuster was a powerhouse of the movie world, before streaming. However, after a due diligence review of Circuit City's financial books, Blockbuster withdrew its offer in July 2008. Netflix went on to become even more popular and more profitable than Blockbuster. [144][145] Apart from the license to use the Blockbuster brand name, Blockbuster Express kiosks are unrelated to Blockbuster LLC, its stores, its DVD-by-mail service, or its online streaming service. David Cook (artist) Found object artist in Minneapolis and Chicago; David Cook (Blockbuster founder) (active since 1978), American businessman; David Cook (historian) (active since 2003), American professor, and historian of Islam at Rice University Netflix felt threatened, and Netflix CEO Reed Hastings approached Antioco with a suggestion to buy Blockbuster's online business. Instead, it posted its own homemade spot to Instagram and YouTube during this year's halftime show, the Los Angeles Times reported last month. [235] An announcement was then made by Deloitte that 160 UK stores would close. Other mass retailers soon followed suit. At its peak in 2004, Blockbuster consisted of 9,094 stores and employed approximately 84,300 people: 58,500 in the United States and 25,800 in other countries. Rome, Italy - April 02, 2019:BLOCKBUSTERS showcase with rusty closed shutter. [36] It also owned 35% of Republic Pictures; that company merged with Spelling in April 1994. [202], In December 2002 the first Blockbuster store opened in Norway, and was followed by another store some months later in 2003, both located in Oslo. [87] Blockbuster admitted that it might not be able to meet financial obligations required under its Chapter 11 filing, a circumstance which could mandate conversion of the bankruptcy filing to Chapter 7 (liquidation). 60K Followers, 807 Following, 831 Posts - See Instagram photos and videos from David Cook (@davidcookofficial) Sign up now to learn about This Day in History straight from your inbox. Late fees, it turned out, were a massive source of revenue for Blockbuster. The re-branding occurred with the owners not renewing their license with Blockbuster and the imminent expiry of the existing license. [177] In 2009 they were on its peak with 72 stores across the country. Analysts were not favorable to the proposed deal, viewing it as a desperate effort to save two struggling retailers rather than a bold turnaround initiative. He knows what--and how--it happened. All times are ET. Under Huizengas leadership, Blockbuster embarked on an aggressive expansion plan, snapping up existing video store chains and opening scores of new stores. This lasted until Virgin sold its interest in the six stores to Blockbuster, which promptly rebranded them in 1993 as Blockbuster Music. [27] At that time, there were 19 stores, attracting Huizenga's associate John Melk's attention due to its efficiency, family-friendly no porn image and business model. On January 16, 2013, Blockbuster UK entered administration, appointing Deloitte as company administrators, casting doubt over the future of their 528 stores in the country.