Blockbuster Essay Example
Blockbuster Essay Example

Blockbuster Essay Example

Available Only on StudyHippo
Topics:
  • Pages: 1 (263 words)
  • Published: May 26, 2017
  • Type: Essay
View Entire Sample
Text preview

David Cook founded the first Blockbuster video store in Dallas, Texas in 1985. Two years later, he sold a one-third stake to investors and eventually left the company, giving up control. By 1992, Blockbuster had expanded to include over 3,000 stores worldwide - consisting of both franchises and company-owned locations. Unfortunately, in 2003 the company suffered a major financial loss reporting a net loss of $845.

After experiencing a shift in its customer base, which exceeded two million, Blockbuster was prompted to make a significant decision for its future. In 2006, the company created a program that allowed customers to either exchange rental movies through the mail or return them to the store and swap them for another film. This made Blockbuster the sole provider of online/mail rental as well as store rentals, offering greater convenience to its customers. Acco

...

rding to Blockbuster's website, it has remained the primary source of media entertainment for over 25 years and intends to maintain that position.

In the past, Blockbuster Video was a common presence in all communities. However, due to the rise of online streaming services like Netflix and the internet, the company struggled and declared Chapter 11 bankruptcy protection in September 2010. The failing corporation was purchased by Dish Network Corp founder Charlie Ergen in April 2011. Although Blockbuster emerged from bankruptcy, there were concerns about its ability to recover.

Ergen aimed to partner with Dish Network and leverage the company to rival Netflix Inc. If, during their acquisition, Dish had chosen to close all Blockbuster stores and sell off assets, they could have gained $300 million in profit without utilizing the renowned "Blockbuster" brand.

View entire sample
Join StudyHippo to see entire essay
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New