Netflix, early on, proposed a partnership with Blockbuster. They were turned down. Much later starting their own version of DVD by mail. Then online streaming (which isn’t shutting down, yet).
Blockbuster tried something like Redbox called Blockbuster Express. Their prices were something like $3 the first night for a new movie, $2 for a month old, $1 for real old stuff. Redbox at the time was $1 a night. (And if you look for codes you usually don’t have to pay full price at Redbox.) Guess how that turned out? Sold off to NCR who sold it to Redbox last year. Strangely, Google Maps says I have a lot of Blockbuster Express kiosks near me. Uh-uh.
This is a company that failed to see the future, played catchup with competitors and did that very badly. This is how monopolies fail.
I checked to see if there are any Blockbuster stores near me. One not too far off. The other is many, many miles away. And this is a major urban area. Dish has been planning on closing it all down for some time. This is just the final drumroll.
The franchise stores (half of them in Alaska where competition is weaker), are going to be interesting. They’ll be like those classic McDonalds. Drive the kids by one while on a trip and give them a hint of nostalgia.
The thing I’ll miss least: Their edited versions of movies. They’d tell studios to clip scenes or they wouldn’t carry them. So the studios complied. When people complained, Blockbuster would say “We don’t edit them. This is how the studios sent them to us.” Right.
What happens to the store is depends on the contract with the mall owner and if there is demand for the space. Sometimes the tenant continues to pay until the lease is up. Sometimes the tenant can negotiate an early termination, especially if the owner has other people lined up. Sometimes the space just isn’t the right size, location, or layout for anything else and it sits. I don’t think Blockbuster owned many stores outright. This would have been really good for them. The only reason KMart survived bankruptcy, and bought Sears, was because it owned a lot of real estate.
Note that a lot of strip malls are designed to make their money back in a short while, e.g., 5 years. So they aren’t built to last much longer than that. In a few short years, problems develop, especially leaky roofs, and it might not pay to fix things up enough that new tenants would want the space. This is when the thrift stores and such move in.