It’s no secret that Netflix has started making some big changes recently, one of those being to do away with password sharing. In a comical response, Blockbuster sent out a friendly reminder to its customers with a less friendly undertone aimed at Netflix.
Blockbuster Contributes to Happiness
One of the greatest things about being a kid in the late 1980s through the 1990s and early 2000s was a trip to Blockbuster or Hollywood Video. Beating out smaller retail video rental stores and gaining access to newer releases sooner, Blockbuster was a major contributor to many happy and nostalgic memories. Memories that hold a special place in the hearts of many, now adults. To make a wonderful experience even better, they also sold candy and other snacks. Their breakthrough services provided a full cinematic experience right from the comfort of your home.
Blockbuster’s Complex Roots
Interestingly, Blockbuster has a long, and maybe even surprising, history. The term was first coined in 1942 and had nothing at all to do with cinema. The term blockbuster referred to bombs that had the ability to destroy entire blocks and neighborhoods. However, the following year, TIME used the word to describe a movie, apparently stating Mission to Moscow was “as explosive as a Blockbuster”. Sometime later, it became a common term for movies that had seemingly done well with public audiences. However, it would be nearly 50 years before the idea of Blockbuster Video would sweep the nation.
The first Blockbuster video opened in 1985 by David Cook in Dallas, Texas. At the time, video rental stores were the only place outside of theaters to access the latest releases. The chain did incredibly well during its first decade and underwent a number of transformations. The first transformation came in 1987. Three major investors put over $18 million into the company and moved its headquarters to Florida. After that, locations began popping up everywhere, and before Blockbuster’s demise, it had more than 9,000 stores worldwide.
Trouble Ahead
However, trouble was on the horizon, and in 1997, something set into motion would ultimately lead to Blockbuster’s downfall. Netflix was founded by Reed Hastings as a way to get around Blockbuster’s late fees, which at the time were estimated to have generated nearly $800 million dollars.
Revolutionary Ideas
Netflix had three major factors that Blockbuster lacked. Firstly, the convenience of DVD’s sent straight to your door. Secondly, no late fees because customers would just pay a flat monthly fee for unlimited access to newly released flicks. Lastly, a chance to view the movies that families didn’t make it to theaters in time to catch. Allowing them to decide, before spending $20-40, if they liked them enough to purchase their own copy.
Missed Encounter and Opportunity
It wasn’t until 2000, Blockbuster unwittingly turned down the opportunity to save itself, refusing to buy Netflix for $50 million. In 2002, Netflix released its next big idea. An idea that would offer the same services as Blockbuster, eventually making it obsolete. However, long-time customers continued to support their beloved Blockbuster video stores, and in 2004, the global empire generated nearly $6 billion in revenue.
Sadly, that same year, Viacom investors branched out on other endeavors. Attempting to save face, Blockbuster launched its online service but just couldn’t keep up with Netflix’s streaming service.
Its market value decreased; in 2005, Blockbuster lost around 3/4 of its value. By 2010, Blockbuster filed for bankruptcy and was bought out by Dish Network, who ultimately decided to close down the remaining stores around the world.
Blockbuster’s Clapback
Fast forward to 2023, Netflix has been facing some issues of its own, and they try to stay relevant in today’s growing market of streaming services. One of their upcoming changes includes prohibiting password sharing by tracking IP addresses to make sure they match up with the account holder’s address. In response, Blockbuster posted a tweet that is both a little cringy and amusing. “A friendly reminder that when you used to rent videos from us,” Blockbuster said. “We didn’t care who you shared it with…as long as you returned it on time.”
A friendly reminder that when you used to rent videos from us. We didn’t care who you shared it with… As long as you returned it on time. @netflix
— Blockbuster (@blockbuster) May 25, 2023
Not long ago, Netflix was encouraging people to share their passwords. In fact, in a March 2017 Tweet, the company wrote, “Love is sharing a word.” Given Netflix’s current stance on password sharing, its rivals couldn’t help but retaliate. Recently, Prime Video UK went as far as responding to the tweet by posting a tongue-in-cheek image.
https://t.co/dHgkuwiuHB pic.twitter.com/PkFhbOoWNd
— Prime Video UK (@primevideouk) May 25, 2023
Unsurprisingly, internet users everywhere also had something to say, with Plenty of Fish, an online dating site, tweeting, “I’m here for this beef”.
It’s unclear at this time if Netflix will be able to pull itself out of the financial turmoil they are currently facing. However, one thing is clear, children of the ’80s, 90s, and early 2000s can’t help but remember the days of Blockbuster with a sense of nostalgia and even comradery, secretly hoping Blockbuster will make its rounds again. Fun fact, there is one single Blockbuster still functioning in the world in Bend, Oregon.
Keep Reading: Netflix Disaster Movie is ‘Almost Exactly what’s Going on’ in the Town They Filmed it in
Sources
- “Blockbuster: The rise and fall of the movie rental store, and what happened to the brand. Insider. Frank Olito and Alex Bitter. April 24, 2023.
- “Blockbuster trolls Netflix over password sharing crackdown.” Fox26. Ahmed Sharma. May 26, 2023
- “Why Hit Movies Are Called Blockbusters.” TIME. Olivia Waxman. February 7, 2020.