Did Netflix Really Put Blockbuster Out Of Business?
While it may seem that Netflix destroyed Blockbuster, Blockbuster was in trouble before Netflix showed up. Netflix started in 1998 and from the chart below, you can see that Blockbuster was struggling two years earlier.
In 2000, Blockbuster had the chance to buy Netflix for $50 million instead Blockbuster made a partnership with Enron Broadband to deliver on-demand movies. Then in 2001, Enron files for bankruptcy.
Blockbuster struggled to successfully compete or differentiate itself from Netflix and then RedBox came to the scene to add more competition.
The infographic below delves into the history and other facts that led to the decline of Blockbuster.