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    This is the greatest video essay of All Time


    last night I had a peculiar dream I was shopping for movies at a blockbuster a store I haven't thought about in years a store most of you probably haven't thought about in years and some of you probably don't even know existed in the first place but a lot of you probably only know blockbuster from fortnight I know a lot of the younger generation thinks for tonight invented the blockbuster myth as if blockbusters Hercules or something but it was a real thing and a big part of my childhood growing up I woke up from the dream immediately after finding the movie and in cold sweat and wet pants cuz I remembered blockbuster and all the great things about it nowadays the blockbuster buildings look like a fucking relic of the Fallout universe their dilapidated in shambles or changed into something else you'll only find used needles there from the drug addicts or you use it as a place to meet up with your dealer who's your shady cousin he does business by the dumpster at the old Blockbuster it's gone it is a dead business and the only real example that I can think of of a business that level six billion dollars worth just crumbling in a hurry they fucking speed ran bankruptcy I still remember it pretty clear I I could remember one day going to Blockbuster picking out a nice Nintendo 64 game or or really anything at that matter a movie The Mummy probably for the 40th time and then the next day all of a sudden the blockbusters been burnt to the ground and the shareholders have a gun in their mouth ready to pull the trigger I don't know what happened so I decided today to research into why blockbuster failed so spectacularly now before going into this I had the speculation that it was Netflix that killed Blockbuster and spoiler alert Netflix definitely did play a role in putting that nail in blockbusters coffin driving that stake through the vampire's heart but there's a lot more at play here blockbuster wasn't as dumb as I thought they were oftentimes its stated blockbuster thought that video rentals were the way of the future forever two thousand years from now blockbuster would still be a household name people still renting VHS tapes that's not the case they knew times were changing but they just waited too long they overestimated how much time they had but they tried a lot of different things that I never even heard of so let's dive into this shit cuz it's super interesting so let's start at the beginning naturally that's a stupid fucking thing to say but anyway it started in 1985 by David Cook sold two years later to three investors and shortly after by the mid 90s established itself as the leader in the video rental space raking in hundreds of millions of dollars along the way but what was the blockbuster business model was there something wrong with the business model that eventually led to an eating shit actually not really the business model was pretty fucking sound in my opinion what they did blockbuster would buy bulk movies buy a whole shit ton of movies and the idea was they would rent them out to customers until they made more money than they bought the video for by renting it out enough times not a bad idea however the big portion of their revenue will not the big portion but a large portion of their revenue came from late fees when you rented a video from Blockbuster you were expected to bring it back by a certain date if you failed to meet that deadline you turn your homework in late your ass gets hit with the ruler and the Catholic school of Blockbuster you're getting slapped with a late fee and they were pretty hefty fines to be honest late fees racked up a lot of money for them approximately eight hundred million in late fees alone in the year 2000 now during blockbusters rain they were well-liked by the majority of people I don't remember too much shit being talked about him except for the occasional oh god damn it I forgot my overdue library book here I've had the mummy returns at my house for the last six months this late fees gonna shave my taint real good so the late fees were obviously a bit of a sore spot for a lot of people but it made sense at the time you were renting the movie you needed an incentive to give it back otherwise you're gonna rent it and just keep it and that's exactly what happened but we'll get to that later because they dropped late fees it wild wild west fucking buildings going up in flames people being slaughtered in the streets cuz late fees are gone it was wild but we'll get to that in a minute the year 2000 was a really important year for blockbuster because that same year Netflix met with blockbuster to propose a partnership Netflix was not like it is in its current day with the streaming service Netflix back then was a dvd-by-mail service Netflix had certain advantages over blockbuster blockbuster was brick-and-mortar they had physical location you'd go to you pick out your movies rinse him take him home for the day you could bring him back the next day bring him back whatever you want but you've got them in person immediately the quick gratification you wanted a quick movie because you were about to get laid you go to Blockbuster just pick out something real quick and you bring it right home Netflix was very different you would order your movie and it was a subscription-based service and be sent through the mail so you'd have to wait you didn't have the immediate gratification that you'd have going to Blockbuster seeing the whole selection and getting what you want you would have to wait for it to come and you'd have to send it back so is a bit cumbersome for a lot of people but it had one huge advantage over blockbuster there were no late fees and since there was no brick-and-mortar shops for Netflix it had a lot lower cost there wasn't as much overhead and it was a pretty consumer friendly business model it started to spread by word of mouth but during the time in the 2000 or 2001 stirred wanted nothing to do with partnering with Netflix a lot of people speculate it's because blockbuster believed video rentals in person would always rain King but that's not the case demonstrated by the fact that blockbuster did try the dvd-by-mail service the on-demand service the streaming service we'll get to those in a minute but they did try those things the problem was they tried them so late obviously if they had acquired Netflix it'd be a whole different world blockbuster would probably the one-world government by this point it was massive now you obviously know what happens next Netflix blows up blows blockbuster out of the water and it's it's absolutely massive but blockbuster didn't think that it was going to be as quick as it was and that was what eventually led to their undoing blockbuster tried a lot of different things but while they were experimenting with new ways of veering away from their primary income being rentals they were still opening new stores they had 9,000 locations by 2004 now there is a single location left in 2019 and that location is an Oregon Bend Oregon if I'm remembering correctly but what my point is to hearing the year 2000 to 2004 they were still opening a shitload of stores there was a blockbuster and every fucking square block you couldn't throw a rock without hitting a blockbuster somewhere they were still expanding massively while still relying on a kind of obsolete business model at this point in time because Netflix was proving to be the consumers choice at this point growing up I didn't know about Netflix my parents were diehard blockbuster fans enthusiasts blockbuster foam fingers so we stuck with blockbuster till the bitter end but I understand looking at the data now Netflix was on the rise killing at the entire time but the reason blockbuster walked away from the Netflix deal is because they preferred to compete with Netflix and they were attempting to compete they weren't so ingrained in their ways that they weren't willing to try new things they partnered with inrun to create a video on-demand service a streaming service and it's not too dissimilar from what Netflix did and the problem was blockbuster didn't dive in with both feet they just dipped the tip of their dick into the water to test it out and while they were doing this still opening new stores as profits were dwindling and they didn't commit to trying this new business model the VOD video on demand and Enron goes bankrupt the entire service crumbles and they just kind of brush it away it's a loss and it would have probably saved the company they could have adapted on the curve been ahead of the game two steps three steps I had a Netflix Way fucking ahead of him but they didn't commit because they wanted to stay primarily video rental they didn't want to go too far out of their comfort zone but they did recognize that things were changing they just underestimated how fast those things were changing so after the Enron experiment completely dissolved in 2001 which it was an extremely innovative idea for its time it's a real fucking shame that it didn't jump start streaming videos but once blockbuster kicked its shit on that one they tried again to stay relevant with the changing times in August of 2004 when they announced their own dvd-by-mail service it sound pretty similar to Netflix because it is it's exactly what Netflix was offering but shittier Netflix had established itself as the go-to for dvd-by-mail they were efficient they were fast they were friendly they had the good graces if everyone on their side and blockbuster was clearly just trying to milk the tits of this cow trying to get in because they knew shit was about to get bad for him 2004 was the last year that blockbuster saw profits after 2004 is when blockbuster noticeably nosedives six billion in 2004 2005 it d...
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