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[[File:Blockbuster membership card.jpg|right|thumb|Blockbuster membership card (c. 1990)]]

[[File:Blockbuster membership card.jpg|right|thumb|Blockbuster membership card (c. 1990)]]

'''Blockbuster Videos Inc.''', formerly '''Blockbuster Entertainment, Inc.''', and also known as '''Blockbuster Video''' or simply '''Blockbuster,LLC''' is an [[American]]-based provider

'''Blockbuster Videos Inc.''', formerly '''Blockbuster Entertainment, Inc.''', (also known as '''Blockbuster Video''' and '''Blockbuster, LLC''') is an [[American]]-based rental service for movies and video games. Traditionally, they offered rented out this media on magnetic tapes (8-track & VHS) and optical disks (DVD & Blu-ray) from brick-and-mortar stores, as well as a DVD-by-mail service and a cinema theater. Later on, they also began offering media streaming and in-name-only on-demand video service.

of home movie and video game rental services through a video rental brick and mortar style store, streaming media, in-name-only on-demand video service, and formerly DVD-by-mail and a cinema theater.  

Founded in 1985 by David Cook, Blockbuster began to expand domestically and eventually on an international level into the the 1990s. When Blockbuster was experiencing "peak performance" of employees and profitability according to their public records, Fall 2004 was this time period. During this time Blockbuster employed 84K people worldwide, 31 percent of those employees were in the [[United States]], for a total of 9,094 stores.

Founded in 1985 by David Cook, Blockbuster began to expand domestically and eventually on an international level into the the 1990s. When Blockbuster was experiencing "peak performance" of employees and profitability according to their public records, Fall 2004 was this time period. During this time Blockbuster employed 84K people worldwide, 31 percent of those employees were in the [[United States]], for a total of 9,094 stores.

American billionaire businessman and media magnate Sumner Murray Redstone, whose New York based Viacom Inc. conglomerate companies then owned Blockbuster, had personally spearheaded a new revenue-sharing arrangement with a few studios, starting with his at the Viacom owned Paramount pictures between Blockbuster video in the mid-1980s. Blockbuster reported rental information through Rentrak, a global media measurement and research company serving the entertainment industry. Blockbuster's revenue sharing would be at little-up front costs allowing the video store giant to keep 60% of the rental fees, paying approximately 40% to the studio it had agreements with on many new releases. In addition to benefiting from a lower initial price, Blockbuster also capitalized on the fact that movies were generally not available for purchase at affordable pricing during initial new home video release periods. Thus customers had a choice to rent from Blockbuster, wait, or buy the film on tape at the much higher (MSRP) Manufacturer's Suggested Retail Price targeted at other rental chains and film enthusiasts, which was pricey and ranged between $70–$100, depending on the film title.

American billionaire businessman and media magnate Sumner Murray Redstone, whose New York based Viacom Inc. conglomerate companies then owned Blockbuster, had personally spearheaded a new revenue-sharing arrangement with a few studios, starting with his at the Viacom owned Paramount pictures between Blockbuster video in the mid-1980s. Blockbuster reported rental information through Rentrak, a global media measurement and research company serving the entertainment industry. Blockbuster's revenue sharing would be at little-up front costs allowing the video store giant to keep 60% of the rental fees, paying approximately 40% to the studio it had agreements with on many new releases. In addition to benefiting from a lower initial price, Blockbuster also capitalized on the fact that movies were generally not available for purchase at affordable pricing during initial new home video release periods. Thus customers had a choice to rent from Blockbuster, wait, or buy the film on tape at the much higher (MSRP) Manufacturer's Suggested Retail Price targeted at other rental chains and film enthusiasts, which was pricey and ranged between $70–$100, depending on the film title.

Examples of revenue sharing between Blockbuster and the Hollywood studios were as follows: On August 25, 1998 Columbia-Tristar Home Video owned by [[Sony|Sony Pictures Entertainment Inc.]] and Blockbuster Videos Inc. agreed on a revenue sharing agreement that lasted 4 years. Within this agreement is a Sony Pictures "Share of Rental Revenue period" paid by Blockbuster to them. This 26 week period that Sony Pictures profits from is approx 40% revenue sharing starting from the new release date of the video until the end of the 6 week new release video period. Furthermore $2.00 US Dollars of the Upfront Price shall be deducted from Sony Pictures's share of rental revenue for each video copy, typically the total cost was $3.25-$3.75 per video copy, leaving the rest of the [[profit]] for Blockbuster within the 26 week New release period. After the 26 week period Blockbuster is free to sell of copies of the rental picture once this Revenue sharing period expires. Blockbuster would typically keep in their older library 3-4 copies of the film and sell the rest off as a (PVT), Previously viewed tape.

Examples of revenue sharing between Blockbuster and the Hollywood studios were as follows: On August 25, 1998 Columbia-Tristar Home Video owned by [[Sony|Sony Pictures Entertainment Inc.]] and Blockbuster Videos Inc. agreed on a revenue sharing agreement that lasted 4 years. Within this agreement is a Sony Pictures "Share of Rental Revenue period" paid by Blockbuster to them. This 26 week period that Sony Pictures profits from is approx 40% revenue sharing starting from the new release date of the video until the end of the 6 week new release video period. Furthermore $2.00 US Dollars of the Upfront Price shall be deducted from Sony Pictures's share of rental revenue for each video copy, typically the total cost was $3.25-$3.75 per video copy, leaving the rest of the [[profit]] for Blockbuster within the 26 week New release period. After the 26 week period Blockbuster is free to sell of copies of the rental picture once this Revenue sharing period expires. Blockbuster would typically keep in their older library 3-4 copies of the film and sell the rest off as a (PVT), Previously viewed tape.

The standard business model for video rental stores had traditionally been to pay a large flat fee per video, approximately $65, and offer unlimited rentals for the lifetime of the medium itself. Sumner Redstone, whose Viacom conglomerate then owned Blockbuster, personally pioneered a new revenue-sharing arrangement for video in the mid-1980s. Blockbuster obtained videos for little cost and kept 60% of the rental fee, paying the other 40% to the studio, and reporting rental information through Rentrak. In addition to benefiting from a lower initial price, Blockbuster also capitalized on the fact that movies were generally not available for purchase at affordable price points during initial release periods. Thus customers had a choice to rent, wait, or buy the film on tape at the much higher Manufacturer's Suggested Retail Price targeted at other rental chains and film enthusiasts, which at that time ranged between $70–$100 per title.  

The standard business model for video rental stores had traditionally been to pay a large flat fee per video, approximately $65, and offer unlimited rentals for the lifetime of the medium itself. Sumner Redstone, whose Viacom conglomerate then owned Blockbuster, personally pioneered a new revenue-sharing arrangement for video in the mid-1980s. Redstone's plan, Blockbuster would buy videos for a relatively low cost, kept 60% of the rental fee, paying the other 40% to the studio. It then reported the rental information through Rentrak. In addition to benefiting from a lower initial price, Blockbuster also capitalized on the fact that movies were generally not available for purchase at affordable price points during initial release periods. Thus customers had a choice to rent, wait, or buy the film on tape at the much higher Manufacturer's Suggested Retail Price targeted at other rental chains and film enthusiasts, which at that time ranged between $70–$100 per title.  

Prior to 2002 Blockbuster has said late fees account for 15 percent of its revenue as part of it's business model.

Prior to 2002 Blockbuster has said late fees account for 15 percent of its revenue as part of it's business model.

==History of the franchise==

==History of the franchise==

===1985–1997: David Cook===

===1985–1997: David Cook===

Sandy Cook, David Cook's wife, liked the idea of renting videos as a business model, shortly thereafter, the Blockbuster concept took off, and her husband would soon study the video industry and future ways to concquer small mom and pop videos stores after taking over the larger competitor video chains. Profitability from their sale of David P. Cook & Associates, the subsidiary of Cook's company, The husband and wife decided to approach a local Dallas video store called Video Works with the hopes of getting fully into the Dallas Texas video store franchise. The Cook's upon running their own Video Works, had asked corporate to allow them to paint the interior of their store a yellow and blue color with a specific design. Te corporate response was no. So the Cook's departed Video works, then proceeded to open the first Blockbuster Video as an incorporated company officially in Fall 1985 in [[Dallas]] Texas. With early successes from the Blockbusters expansion and new stores opening under the company name, Cook built a $6-million video warehouse in [[Garland, Texas]].

Sandy Cook, David Cook's wife, liked the idea of renting videos as a business model, shortly thereafter, the Blockbuster concept took off, and her husband would soon study the video industry and future ways to conquer small mom and pop videos stores after taking over the larger competitor video chains. Profitability from their sale of David P. Cook & Associates, the subsidiary of Cook's company, The husband and wife decided to approach a local Dallas video store called Video Works with the hopes of getting fully into the Dallas Texas video store franchise. The Cook's upon running their own Video Works, had asked corporate to allow them to paint the interior of their store a yellow and blue color with a specific design. Te corporate response was no. So the Cook's departed Video works, then proceeded to open the first Blockbuster Video as an incorporated company officially in Fall 1985 in [[Dallas]] Texas. With early successes from the Blockbusters expansion and new stores opening under the company name, Cook built a $6-million video warehouse in [[Garland, Texas]].

Nintendo of America, Inc. v. Blockbuster Entertainment. (1987) When home console videogames from the likes of Atari, Nintendo Coleco-vision, etc. boomed in popularity in the 1980s, Blockbuster rented specifically nintendo games out to their customers, too. Gaining ground as the largest Video game manufacturer, Nintendo, sued Blockbuster for copyright infringement over copies of their video game manual booklets that came with each video game cartridge. Nintendo claimed Blockbuster was doing unauthorized rentals of Nintendo videogames as a was a violation of federal law. Ultimately the two parties would eventually settle the matter out of court, with Blockbuster retaining the legal right to continue the practice. Nintendo successfully prosecuted Blockbuster for providing photocopied instruction manuals along with its rental NES carts. Blockbuster unsuccessfully argued that it was only protecting its investment in the original manuals, as it would cost more to replace the originals than it would to photocopy replacements. In this particular part of the case, the courts found in favor of Nintendo, therefore Blockbuster was required to start providing the original manuals with its rental games. Blockbuster still would'nt be forced into doing this practice so thy would only provide the manuals if a customer specifically asked for one form the back of the store or if one was available in a drawer. Still early on there were only 19 Blockbuster stores, and the upward potential attracted Wayne Huizenga's associate John Melk. Gaining Melk's attention due to Blockbuster's efficiency, business model, family-friendly image and he convinced Huizenga to have a look at it. Huizenga and Melk utilized techniques from their waste business and Ray Kroc's model of expansion to rapidly expand Blockbuster, and soon they were opening a new store every 24 hours. In 1987, Huzienga and the two partners purchased a controlling interest in Blockbuster Entertainment for $18.5 million and began setting out to acquiring video store competitors like the Las Vegas video-superstore chain Major Video and Movies to Go, a 29-store chain based in [[St. Louis]]. They took over many of the existing Blockbuster franchise stores as well, and Huizenga even spent much of the late 1980s acquiring several of Blockbuster's rivals.

Nintendo of America, Inc. v. Blockbuster Entertainment. (1987) When home console video games from the likes of Atari, Nintendo Coleco-vision, etc. boomed in popularity in the 1980s, Blockbuster rented specifically Nintendo games out to their customers, too. Gaining ground as the largest Video game manufacturer, Nintendo, sued Blockbuster for copyright infringement over copies of their video game manual booklets that came with each video game cartridge. Nintendo claimed Blockbuster was doing unauthorized rentals of Nintendo video games as a was a violation of federal law. Ultimately the two parties would eventually settle the matter out of court, with Blockbuster retaining the legal right to continue the practice. Nintendo won the case, based on the fact that Blockbuster had included photocopies of the original instruction manuals with its rental NES carts. Blockbuster unsuccessfully argued that it was only protecting its investment in the original manuals, as it would cost more to replace the originals than it would to photocopy replacements. In this particular part of the case, the courts found in favor of Nintendo, therefore Blockbuster was required to start providing the original manuals with its rental games. Blockbuster still wouldn't be forced into doing this practice so thy would only provide the manuals if a customer specifically asked for one form the back of the store or if one was available in a drawer. Still early on there were only 19 Blockbuster stores, and the upward potential attracted Wayne Huizenga's associate John Melk. Gaining Melk's attention due to Blockbuster's efficiency, business model, family-friendly image and he convinced Huizenga to have a look at it. Huizenga and Melk utilized techniques from their waste business and Ray Kroc's model of expansion to rapidly expand Blockbuster, and soon they were opening a new store every 24 hours. In 1987, Huzienga and the two partners purchased a controlling interest in Blockbuster Entertainment for $18.5 million and began setting out to acquiring video store competitors like the Las Vegas video-superstore chain Major Video and Movies to Go, a 29-store chain based in [[St. Louis]]. They took over many of the existing Blockbuster franchise stores as well, and Huizenga even spent much of the late 1980s acquiring several of Blockbuster's rivals.

[[File:Blockbuster-Store-Exterior-.jpg|thumb|right|The exterior of a Blockbuster store in Mankato, [[Minnesota]]]]

[[File:Blockbuster-Store-Exterior-.jpg|thumb|right|The exterior of a Blockbuster store in Mankato, [[Minnesota]]]]

===2007–2011: James Keyes era===

===2007–2011: James Keyes era===

On July 2, 2007, the company named James W. Keyes, as its newest chairman and CEO. Keyes was the former president and CEO of 7-Eleven. as the new chairman and CEO. James Keyes set out to raise money for the marketing and store improvements that Blockbuster so desperately needed when he took over. Additionally there was now for Blockbuster to focus on a shift to streaming video with the acquisition of MovieLink in September 2008.  

On July 2, 2007, Blockbuster named James W. Keyes as its newest chairman and CEO. Keyes was the former president and CEO of 7-Eleven. as the new chairman and CEO. James Keyes set out to raise money for the marketing and store improvements that Blockbuster so desperately needed when he took over. Additionally there was now for Blockbuster to focus on a shift to streaming video with the acquisition of MovieLink in September 2008.  

Early in 2008, News of Blockbuster's bid for Circuit City, valued at up to $1.35 billion surfaced. After a thorough review of Circuit City's financial books, Blockbuster withdrew its offer in July 2008.  

Early in 2008, News of Blockbuster's bid for Circuit City, valued at up to $1.35 billion surfaced. After a thorough review of Circuit City's financial books, Blockbuster withdrew its offer in July 2008.  

Carl Icahn officially resigned from Blockbuster's board of directors selling nearly all his remaining Blockbuster stock.

Carl Icahn officially resigned from Blockbuster's board of directors selling nearly all his remaining Blockbuster stock.

The liquidation of Movie Gallery began in May 2010, eliminating Blockbuster's primary competitor. During the same month a dissident shareholder, Gregory S. Meyer, in an effort to be elected to Blockbuster's board of directors, engaged in a proxy battle with Blockbuster's board, alleging that the board had been responsible for significant destruction of value to shareholders. Meyer was elected to the board at Blockbuster's shareholder meeting in Dallas on June 24, 2010.

The liquidation of Movie Gallery began in May 2010, eliminating Blockbuster's primary competitor. During the same month a dissident shareholder, Gregory S. Meyer, in an effort to be elected to Blockbuster's board of directors, engaged in a proxy battle with Blockbuster's board, alleging that the board had been responsible for significant destruction of value to shareholders. Meyer was elected to the board shortly after, on June 24, 2010, at Blockbuster's shareholder meeting in Dallas.

On July 1, 2010, the company was delisted from the [[New York Stock Exchange]]. The suspension and delisting of Blockbuster shares came after a failed attempt to get shareholders to agree to a reverse stock split because of the stock's trading at well below $1 per share. Ultimately the stock was then traded on the OTC Bulletin Board (over-the-counter bulletin board).

On July 1, 2010, the company was delisted from the [[New York Stock Exchange]]. The suspension and delisting of Blockbuster shares came after a failed attempt to get shareholders to agree to a reverse stock split because of the stock's trading at well below $1 per share. Ultimately the stock was then traded on the OTC Bulletin Board (over-the-counter bulletin board).

===Blockbuster-Pop-Up Location at Japan LA in little-tokyo of Los Angeles, California===

===Blockbuster-Pop-Up Location at Japan LA in little-tokyo of Los Angeles, California===

[[File:Blockbuster-Pop-Up Location at Japan LA-little-tokyo in Los Angeles, California.jpg|thumb|The Summer 2019 Blockbuster-Pop-Up Location at Japan LA in little-tokyo of [[Los Angeles]],[[California]]]]

[[File:Blockbuster-Pop-Up Location at Japan LA-little-tokyo in Los Angeles, California.jpg|thumb|The Summer 2019 Blockbuster-Pop-Up Location at Japan LA in little-tokyo of [[Los Angeles]],[[California]]]]

From July 12-14 2019 The storefont location of Japan LA in little-tokyo of Los Angeles, California opened its doors from 12pm until 8pm Pacific standard time. Notably this was the first time on record where a blockbuster location didn't close at it's business as usual customery midnight closing time, not including major holiday exceptions.

From July 12-14 2019 The storefront location of Japan LA in little-tokyo of Los Angeles, California opened its doors from 12pm until 8pm Pacific standard time. Notably this was the first time on record where a blockbuster location didn't close at it's business as usual customery midnight closing time, not including major holiday exceptions.

You could RSVP your intended plans to be present on their website or phone app in an effort to gauge the popularity and so the operators could plan on how many guests they would received in addition to marketing the three day event. Streetwear brand Dumbgood partnered with Blockbuster via this pop-up in Los Angeles, as well as bringing their merchandise to ComplexCon 2019.  

You could RSVP your intended plans to be present on their website or phone app in an effort to gauge the popularity and so the operators could plan on how many guests they would received in addition to marketing the three day event. Streetwear brand Dumbgood partnered with Blockbuster via this pop-up in Los Angeles, as well as bringing their merchandise to ComplexCon 2019.  

On August 11, 2004, Blockbuster introduced a "DVD-by-mail" service in the U.S. to compete with the established market leader, [[Netflix]].

On August 11, 2004, Blockbuster introduced a "DVD-by-mail" service in the U.S. to compete with the established market leader, [[Netflix]].

Blockbuster stated on record that in order to more actively participate in the growing market for online rental subscription services, they would launch "Blockbuster Online". This would be a subscription service in the United States, officially released in August 2004. The U.K. operations launched its online subscription service a few months prior in May 2004. These internet-based services allowed customers to rent DVDs by mail and offer substantially more titles than their stores, including a wide array of both new release and catalog DVDs. Additionally, BLOCKBUSTER ONLINE subscribers receive two free in-store rental coupons each month that can be redeemed for movies or video games. In contrast to thier in-store subscription service, their online subscription services required significant ongoing subscriber acquisition investment in order to tap into the growing market and claimed to build a customer base large enough to allow this portion of their business to be profitable. As of March 9, 2005, Blockbuster had more than 750,000 "Blockbuster Online" subscribers, and made plans to invest heavily in this business during 2005 with a goal of having over two million subscribers by the end of the first quarter of 2006 at a substantial profit. Furthermore Blockbuster Online's plans were to further accelerate subscriber acquisition efforts.  

Blockbuster stated on record that in order to more actively participate in the growing market for online rental subscription services, they would launch "Blockbuster Online". This would be a subscription service in the United States, officially released in August 2004. The U.K. operations launched its online subscription service a few months prior in May 2004. These internet-based services allowed customers to rent DVDs by mail and offer substantially more titles than their stores, including a wide array of both new release and catalog DVDs. Additionally, BLOCKBUSTER ONLINE subscribers receive two free in-store rental coupons each month that can be redeemed for movies or video games. In contrast to their in-store subscription service, their online subscription services required significant ongoing subscriber acquisition investment in order to tap into the growing market and claimed to build a customer base large enough to allow this portion of their business to be profitable. As of March 9, 2005, Blockbuster had more than 750,000 "Blockbuster Online" subscribers, and made plans to invest heavily in this business during 2005 with a goal of having over two million subscribers by the end of the first quarter of 2006 at a substantial profit. Furthermore Blockbuster Online's plans were to further accelerate subscriber acquisition efforts.  

Blockbuster's U.S. online operation started with around 10 warehouses; further expansions every year brought that number to 41, plus more than 1400 stores in the Blockbuster Online network. Most Blockbuster independent franchises did not honor the Total Access program. The company had 1.5 million subscribers at the end of the third quarter of 2006. Blockbuster's move to follow the business pattern with its online rentals as was established by Netflix prompted Netflix to sue Blockbuster for patent infringement. Blockbuster counter sued with a counterclaim alleging deceptive practices with its patent which it alleged was designed to maintain an illegal monopoly. The suits were eventually settled, and while the terms were not disclosed it was later reported that Netflix recorded a settlement payment from Blockbuster of $4.1 million in the second quarter of 2007.

Blockbuster's U.S. online operation started with around 10 warehouses; further expansions every year brought that number to 41, plus more than 1400 stores in the Blockbuster Online network. Most Blockbuster independent franchises did not honor the Total Access program. The company had 1.5 million subscribers at the end of the third quarter of 2006. Blockbuster's move to follow the business pattern with its online rentals as was established by Netflix prompted Netflix to sue Blockbuster for patent infringement. Blockbuster counter sued with a counterclaim alleging deceptive practices with its patent which it alleged was designed to maintain an illegal monopoly. The suits were eventually settled, and while the terms were not disclosed it was later reported that Netflix recorded a settlement payment from Blockbuster of $4.1 million in the second quarter of 2007.

*[https://www.chiefmarketer.com/blockbuster-canada-launches-loyalty-program/ Canada Loyalty rewards program]

*[https://www.chiefmarketer.com/blockbuster-canada-launches-loyalty-program/ Canada Loyalty rewards program]

[[Category:Business]]

[[Category:Business]]

[[Category:Television]]

[[Category:Television]]

[[Category:Movies]]

[[Category:Movies]]