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5. Blockbuster LLC (formerly Blockbuster Entertainment, Inc., also known as Blockbuster Video or just Blockbuster) was an American-based provider of home movie and video.

Blockbuster LLC - Wikipedia. This article is about the video rental company.

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For other uses, see Blockbuster. Blockbuster LLC (formerly Blockbuster Entertainment, Inc.,[3] also known as Blockbuster Video[4] or just Blockbuster) was an American- based provider of home movie and video game rental services through video rental shops, DVD- by- mail, streaming, video on demand, and cinema theater.[5] Blockbuster became internationally known throughout the 1. At its peak in 2. Blockbuster employed 8.

United States and about 2. Competition from the Netflix mail- order service, Redbox automated kiosks, and video on demand services were the major factors that led to Blockbuster's eventual demise. Blockbuster began to lose significant revenue during the 2. The following year, its remaining 1,7.

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Dish Network.[1. 1][1. While the Blockbuster brand has mostly been retired, Dish still maintains a relatively small number of Blockbuster franchise agreements, which allows some stores to remain open in a few markets.

History[edit]1. 98. David Cook[edit]Blockbuster's early beginnings can be traced back to another company, Cook Data Services, that was founded by David Cook in 1. The company's primary goal was to supply software services to the oil and gas industries throughout Texas, but it was not very successful.[1. Sandy Cook, David's wife, suggested that he enter the video rental business.[citation needed] Cook sold his oil and gas software to its managers and founded Blockbuster Video in 1. The first Blockbuster store opened October 1. Dallas, Texas.[1. Watch Original Sin Megavideo.

Cook's experience with managing huge databases proved helpful in driving innovation within the industry.[2] Following early success from the company's first stores, Cook built a $6- million warehouse in Garland, Texas, to help sustain and support future growth that allowed new stores to open quickly.[2] Blockbuster would often custom- tailor a store's inventory to its neighborhood, based on local demographics.[2]In 1. Nintendo, which paved the way for video game rental.[1.

Also that year, Waste Management co- founder Wayne Huizenga, who originally had reservations about entering the video rental industry, agreed to acquire several Blockbuster stores.[1. Huizenga and associate John Melk utilized techniques from their waste business to rapidly expand Blockbuster, and soon they were opening a new store every 2. They took over many of the existing Blockbuster franchise stores as well, and Huizenga even spent much of the late 1. Blockbuster's rivals, including Major Video. In 1. 99. 0, Blockbuster bought mid- Atlantic rival Erol's which had more than 2. In 1. 99. 2, Blockbuster acquired the Sound Warehouse and Music Plus music retail chains and created Blockbuster Music.[2.

In October 1. 99. Blockbuster took controlling interest in Spelling Entertainment Group, a media company run by television producer Aaron Spelling.[2. It also owned 3. 5% of Republic Pictures; that company merged with Spelling in April 1.

Blockbuster became a multibillion- dollar company and in 1. Viacom. After both companies' stocks tumbled in 1.

Viacom purchased Blockbuster for $8. The Blockbuster Block Party concept was test- marketed in Albuquerque, New Mexico and Indianapolis, Indiana in 1. It was an "entertainment complex" aimed at adults, containing eight themed areas housing a restaurant, games, laser tag arena, and motion simulator rides, and was housed in a windowless building the size of a city block.[2. During the 1. 99. Blockbuster expanded in the United Kingdom, purchasing that country's Ritz Video chain. The stores were rebranded to Blockbuster, making it the number one UK rental chain.[2.

In 1. 99. 6, the Blockbuster Entertainment Corporation was renamed Blockbuster Entertainment Inc.[3] and the retail stores, then called Blockbuster Video, were renamed Blockbuster. The logo changed slightly, but retained the ITC Machine font.[2. In November 1. 99. Blockbuster confirmed that it was moving its headquarters from Fort Lauderdale, Florida to the Renaissance Tower in downtown Dallas.[3.

Most of the workers at the Florida headquarters did not want to relocate, so Blockbuster planned to hire around 5. Dallas headquarters. The company had offered various relocation packages to all of its Fort Lauderdale staff.[3. John Antioco[edit]In 1. Blockbuster created DEJ Productions, which acquired 2.

Blockbuster stores prior to being sold off to First Look Studios in 2. During that same year, Blockbuster bought the Irish video rental store Xtra- vision, with over 2. Ireland and the UK. In 2. 00. 9, Blockbuster sold off its Irish operations to Birchall Investments, with the few Xtra- vision stores in the UK being rebranded as Blockbuster. In August 1. 99. 8, Viacom sold the Blockbuster Music chain to Wherehouse Entertainment, which was subsequently purchased by Trans World Entertainment in 2.

In 2. 00. 0, the company partnered with Enron in an attempt to create a video- on- demand service. Initially, the partnership was supposed to last for 2. Enron chose to terminate the deal only a few months later over fears that Blockbuster could not provide sufficient films for the service.[3.

Also in 2. 00. 0 Blockbuster turned down a chance to purchase the still fledgling Netflix for $5. In 2. 00. 2, Blockbuster acquired Movie Trading Company, a Dallas chain that buys, sells, and trades movies and games, to study potential business models for DVD and game trading. Also that year, it acquired Gamestation, a 6. UK computer and console games retailer chain. Blockbuster separated from Viacom in 2. Online DVD subscription was introduced on Blockbuster.

Blockbuster Online.[3. Blockbuster also rolled out its "Game Rush" store- in- store concept to approximately 4. Blockbuster began game and DVD trading in select U. S. stores.[3. 7]At its peak in 2. Blockbuster had more than 9,0.

U. S.[7] In December 2. Blockbuster announced its intention to pursue a hostile takeover of Hollywood Video, its major U. S. competitor.[3. After some extensions of the tender offer, Blockbuster eventually gave up due primarily to resistance from the FTC.[3. In response to the Blockbuster offer, Hollywood Video agreed to a buyout in January 2. Dothan, Alabama- based Movie Gallery. Since then, Movie Gallery has filed for bankruptcy twice and its entire chain of stores has been liquidated.

In May 2. 00. 5, financier Carl Icahn waged a successful proxy fight to add himself and two other members to the board. Icahn accused Blockbuster of overpaying chairman and CEO John F. Antioco, who had served in that capacity since 1. Icahn was also at odds with Antioco on how to revive profit at Blockbuster; Antioco scrapped late fees in January, started an internet service, and wanted to keep the company independent, while Icahn wanted to sell out to a private equity firm.[4.

Also in 2. 00. 5 Blockbuster began running a campaign promoting a "No more late fees" policy[4. The campaign proved controversial with Associated Press reporting that the new policy actually charged users the full price of the movie or game after eight days which they could cancel by returning the product in question and paying a fee.[4.

More than 4. 0 states filed suit against the company for false advertising.[4. Blockbuster would later settle the suit agreeing to refund customers as well as promising to better explain the policy.[4. In 2. 00. 7, Antioco left the company, reportedly due to continued controversy over his compensation. He left with a $2. In 2. 00. 6, Vintage Stock acquired the Movie Trading Company name from Blockbuster and continues to use the name for Dallas- area stores.[4.

On June 1. 9, 2. 00. Blockbuster announced that it had chosen Blu- ray over HD DVD rental format to rent in a majority of its stores. In the pilot program, Blockbuster offered selected titles for rental and sale in 2. Blockbuster stocked Blu- ray titles in almost 5,0. United States, Canada, the United Kingdom, Mexico, and Australia.[4.

James Keyes[edit]On July 2, 2.