Blockbuster Competitors

There are a few companies that compete with Blockbuster in the movie rental business. One such company is Rent-A-Movie. Rent-A-Movie has a similar business model to Blockbuster, but they focus more on customer service and convenience.

Another competitor is Movie Management. Movie Management is a subscription-based service that allows customers to rent movies online. Finally, there is Movie Company. Movie Company is an online movie rental service that offers a variety of movie genres to choose from.

David Cook, founder and owner of Blockbuster LLC, previously known as Blockbuster Video Entertainment, Inc., set up and established the firm in Dallas, Texas in 1985. The company offered video rental services through physical shops, DVD-by-mail, streaming, video on demand, and cinema theaters.

Blockbuster became a multi-billion-dollar company and at its peak in 2004, Blockbuster employed 84,300 people worldwide in approximately 9,000 stores.

The company started to experience financial difficulties in the early 2000s due to competition from online rental services such as Netflix and Redbox. In 2010, Blockbuster filed for bankruptcy protection and subsequently closed all of its remaining company-owned stores in the United States.

Today, the name “Blockbuster” is still used by certain businesses such as Dish Network, which holds a trademark on the name. However, these businesses are not affiliated with the original Blockbuster company.

At its height, Blockbuster employed over 60,000 people and had over 9,000 outlets worldwide. However, the competitive market developing around it, such as Netflix and RedBox, forced it to collapse in 2010 after 25 years of existence (Why health insurers may be destined to follow Blockbuster into Irrevelence, 2015).

Although Blockbuster was the first and leading company in the video-rental industry, it did not have a good management system to control its Renting Company, which caused its fall. The case of Blockbuster is a classic example that the first-mover advantage does not always mean success in business. A key lesson for all businesses is that they should not just focus on their core competence but also keep an eye on their competitors to improve and update their offerings (Kotler & Keller, 2016).

Despite his vast knowledge, he was unscrupulous and failed to realize that the Netflix merger, while appearing incorrect at first, might lead to the firm’s demise. Researchers and other industrialists have studied these networks for the last 15 years, and measures may have been taken (Greg, 2014).

Netflix’s incredible customer service and low prices continue to lure customers from their local video stores. The company has been so successful in the DVD-by-mail business that they are now attempting to revolutionize how movies are watched by offering instant streaming of movies and television shows to personal computers, game consoles, and portable devices. NetFlix’s distribution model is unique and has proven difficult for competitors to copy. Renting DVDs through the mail is not a new concept – it was actually pioneered by a company called in the late 1990s.

What made Netflix so successful was their use of technology, which allowed them to automate the entire process and provide customers with an easy-to-use interface. This was a significant competitive advantage over other DVD rental companies, who were still using a manual process. Netflix was also able to keep prices low by using a subscription model, which allowed them to spread the cost of acquiring and shipping DVDs over a large number of customers.

Blockbuster, Netflix’s largest brick-and-mortar competitor, has been slow to respond to the threat posed by Netflix. Blockbuster initially tried to copy Netflix’s business model, but they were unsuccessful because they did not have the same technology infrastructure in place. Blockbuster then shifted its focus to online movie downloads, but this move was too little too late and the company is now struggling to stay afloat.

Blockbuster was already well established and a well-known video rental company when Hastings went to Dallas and proposed in 2000. With millions of consumers, a large budget in the market, and a strong operational team, sufficient enough to compete with the competition, the firm was located at thousands of retail places all over the world with hundreds of thousands of employees.

However, the company missed to see an important thing that would cost them their business in future. The change in customer’s behavior with time from renting videos to streaming movies online. Blockbuster was not able to make this transition on time which led to its downfall. Netflix is one of the major competitors for Blockbuster, who did not face any issue in adapting according to changes and still is a major player in movie rental services.


Netflix is an American entertainment company founded in 1997 by Reed Hastings and Marc Randolph. It specializes in and provides streaming media, video-on-demand online, and DVD by mail. In 2013, Netflix expanded into film and television production, as well as online distribution. As of 2017, the company has its headquarters in Los Gatos, California.

Antioco was clearly hesitant to simply give the business over to a novice firm, as the team had worked hard to preserve the company’s stature and reputation.

This is where Dish Network came into the picture and according to the sources, both parties had been in discussion for a while before the announcement was made public. The deal was completed in April 2011 and Blockbuster became a subsidiary of Dish Network Corporation

According to Rentrak, Blockbuster’s market share has steadily declined over the years as competition from Netflix, Redbox, and other companies has increased. In 2011, Blockbuster held a 14.4% market share of the DVD rental industry. By 2016, that number had dropped to just 3.8%.

Netflix is one of Blockbuster’s biggest competitors. Netflix was founded in 1997 and started out as a DVD-by-mail service. In 2007, they introduced a streaming service which allowed instant streaming of television shows and movies on personal computers. In 2010, they became available on devices like Xbox, Playstation, Apple products, and smart TVs. As of 2016, Netflix had 86 million subscribers.

Redbox is another one of Blockbuster’s competitors. Redbox was founded in 2002 and is a DVD rental service. Redbox kiosks can be found in grocery stores, pharmacies, mass retailers, and restaurants. As of 2016, Redbox had over 42,000 locations.

Other companies that compete with Blockbuster include Amazon Prime Video, Hulu, and HBO Now.

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