Taking A Look At Blockbuster

Blockbuster is a company that provides rental services on home movies and videos game to it customers. According to Smith (2015), at its peak, the company was worth over two point five billion dollar and over nine thousand stores. The main business model of the company is to rent out movies and games to customer at fixed prices at Blockbuster’s man brick and mortar stores. The company was a big household name in the 1990s and early 2000s. However, Blockbuster found it revenue decline when it started competing with Netflix. Netflix, like Blockbuster, also rented movies. However, unlikely BlockBuster, Netflix offered unlimited movies for low monthly cost and mailed it’s movies straight to the customers (Smith, 2015). According to Chhabria (2017),

They won’t realize their mistake until Netflix began gaining even greater success. Chhabria (2017) explains that by 2002, Netflix gained one hundred fifty million in revenues and thirty-six percent profit margin. Blockbuster was eventual pressured to sign up Enron to stream online content to compete with Netflix. Unfortunately for Blockbuster, Enron was caught in an accounting scandal about nine months after Blockbuster signed on. By 2011, Blockbuster declared bankruptcy and losing most of it customer to Netflix (Chhabria, 2017). Smith (2015) reveals that Blockbuster has been acquired by DISH network. DISH network bought Blockbuster for about three hundred twenty million dollars, which is much less than the company’s original worth of two point five billion dollar (Smith, 2015). According to Taylor (2018), Blockbuster manages to linger on today with fewer then ten brick and mortar stores left remaining in the United States. Due to the long winter and low Wi-Fi, three of these stores are kept open in Alaska (Taylor, 2018). Although Blockbuster has managed to continue on, it will no be long until the entire company will be nothing more than a memory of the once successful