We all have fond memories of having special evenings watching a movie.  Whether it's time with family, a significant other, or just a night spent with friends. And those memories usually involved trekking out to Blockbuster at some point, scanning the rows upon rows of movies, and trying to settle on a title that would satisfy everyone. Maybe grabbing some microwave popcorn on the way out. Those days are over; it's an end of an era. After 28 years, Blockbuster has announced it is closing its remaining 300 stores by the end of January.

_{Photo Source: yapsnpas at flicker.com}

While I have countless fond memories, I haven‘t seen the inside of a Blockbuster in years.  In fact I can’t even remember the last time I saw the outside of a Blockbuster. If there was one nearby, I wasn’t aware of it. Blockbuster left the public’s consciousness long ago.

What did Blockbuster do wrong?  Many will drone on about how Blockbuster messed up time and time again.  You’ll hear it was due to poor hiring decisions, late fee debacles, not enough or too many locations, etc, etc. You’ll likely hear these and many more reasons for the giant’s fall (they were a giant, once upon a time).  I am more forgiving.

It is a new era; the times during which Blockbuster thrived have long since passed.  It is now an age of cloud storage, kiosks and streaming digital videos. The day belongs to Redbox, Netfix and Hulu. 

If Blockbuster is guilty of anything it is that its management lacked the ability to recognize the changing times and quickly adapt.  How could Blockbuster possibly compete with the ease, convenience and low cost of picking up a $1 video at a kiosk around the corner?  Or even better, never having to leave home at all, having a movie mailed right to your door? And more recently, having a movie delivered instantly to your computer, tablet or TV?  I can’t imagine anyone would choose to drive to the nearest Blockbuster instead. And then there were problems – the movie being out of stock, being damaged, or an inept clerk forgetting to take the security lock off the box.  Even if you managed to watch the video without incident, there could be more hassles--having to rush back to return it, late fees and losses. Once new superior alternatives were available, millions of us turned our backs on Blockbuster and never looked back.  

Yes, Blockbuster tried to copy these upstarts with their own mail delivery service, streaming videos and kiosks, but it was too little too late.  They lacked pizzazz, the superior technology and algorithms, and even the locations. (The only time I saw a Blockbuster kiosk was on a trip overseas).  Blockbuster also missed out on the longtail, offering only a fraction of the vast indie titles that Netflix offers. Blockbuster didn't take any meaningful risks like Nerflix with its original productions. Netflix, Redbox  and Hulu innovate. Blockbuster copies--poorly and late.

Though Blockbuster hit its peak in 2004 with 9,000 stores, Blockbuster had been in trouble for years. The company filed for Bankruptcy back in September 2010 and was acquired by Dish Network shortly thereafter. It is ironic that Blockbuster’s strongest competitor, Netflix, might never have come to be had its founder, Reed Hastings, not been charged a $40 late fee for returning a Blockbuster video in 1997.  This experience directly lead him to create Netflix.  But Blockbuster didn’t recognize Netflix as a threat until too late.  It even had a chance to purchase Netflix for a paltry $50 million. It declined, deciding it would be better off creating its own Netflix clone.  It wasn’t.

With Blockbuster’s few remaining stores closed, Dish now plans to focus on Blockbuster’s Netflix-like streaming services, Blockbuster @Home and Blockbuster On Demand. The former is a streaming service available to Dish pay-TV customers for an extra fee while the latter is a similar service available to the public. These lag so far behind Netflix in terms of customers and content, it is unlikely they will ever be a threat.  On the contrary, the competition will only grow stronger.  As usual, Blockbuster is too late to the party… It wasn't even invited this time. 

Am I sorry to see Blockbuster go? In a nostalgic way.  It's like saying goodbye to an old girlfriend, to precious moments you once shared. But you’ve drifted apart and the past is over.  I probably won't even miss Blockbuster. Looking ahead, my wife and I have a date with Netflix tonight.