With over 83 percent of households worldwide subscribing to at least one streaming service, the entertainment industry has undergone a dramatic shift, according to grandviewresearch.com. The rise of platforms like Netflix, Hulu, and Amazon Prime Video has revolutionized how people consume media, offering convenience and easy access. This dramatic transformation redefined the entertainment world and contributed to the downfall of video rental institutions like Blockbuster. Once a global powerhouse with over 9,000 stores, Blockbuster now clings to just one remaining location in Bend, Oregon, according to businessinsider.com.
Mr. Wayne Huizenga and Mr. David Cook founded Blockbuster in 1985 in Dallas, Texas. Thereafter, Blockbuster quickly became a household name by offering an extensive selection of movies and video games for rent. By the 1990s, Blockbuster’s footprint expanded to thousands of locations worldwide, making it a staple in households. Its business model was revolutionary for the time, leveraging innovative management and a customer-focused experience.
Blockbuster differentiated itself from local video rental stores by maintaining a broader selection of titles, organized layouts, and an appealing in-store atmosphere according to medium.com. Blockbuster’s peak came in 2004 when it operated 9,094 stores and earned $5.9 billion in revenue, according to em360tech.com. However, Blockbuster’s eventual downfall began when the digital era emerged in the 2010s.
Streaming services gained traction in the mid-2000s, radically altering the entertainment landscape. Netflix, founded in 1997 as a digital versatile disc (DVD) rental-by-mail service, pivoted to streaming in 2007. This strategic shift allowed Netflix to tap into the growing demand for digital convenience, a factor that Blockbuster underestimated, according to factr.me.
The development of algorithms to personalize recommendations played a significant role in the popularity of these platforms. Streaming services were not just about convenience as they provided tailored content experiences that traditional media could not match. This creation altered the entertainment world forever and become increasingly popular throughout the 2010s. By 2020, services, like Hulu, Amazon Prime Video, and Disney+, had joined the fray, collectively amassing billions of subscribers worldwide, according to simkl.org. Mr. David Pisani, Creative Filmmaking Teacher and Upper School Multimedia Faculty Member, discussed the shift from video rentals to streaming in the film world.
“The transition had two major effects. First, the video rental model disappeared, causing major chains too close. Second, it impacted independent film world. In the past, the profitable VHS market provided funding for independent filmmakers, guaranteeing their work would be distributed,” Mr. Pisani said. “As the entertainment model changed, funding became less reliable, making it harder to create independent films. Today, streaming services and investors are reluctant to take risks, leaving the independent film world scarce.”
Blockbuster’s decline began due to its failure to adapt to the changing technological landscape. The company missed several opportunities to pivot, including a chance to buy Netflix for $50 million in 2000, an offer it declined, according to medium.com. Then, the 2008 financial crisis worsened Blockbuster’s struggles, as consumers sought more cost-effective entertainment options. Streaming services offered unlimited access to a vast selection of content for a fraction of Blockbuster’s rental fees. By 2010, Blockbuster filed for bankruptcy, marking the end of its dominance in the home entertainment market, according to factr.me.
Today, the last remaining Blockbuster in Bend, Oregon, stands as a nostalgic relic of the 2000s era. This store has transformed into a tourist destination, attracting visitors who wish to relive the past of browsing aisles for the perfect movie. The store sells memorabilia, including T-shirts, hats, and other souvenirs, allowing visitors to take a piece of nostalgia home. While it still rents out DVDs, much of its appeal lies in the sentimental value it holds for those who grew up during Blockbuster’s peak. The Bend location symbolizes the enduring cultural impact of a brand that once defined home entertainment, according to factr.me.
Featured Image by Ellie Furman ’26
