Blockbuster and its blue ticket-stub logo were a familiar part of the American landscape for more than a decade. But competitors such as Netflix chipped away at its prominence, first through video-by-mail operations and then by streaming movies and TV shows directly to computers, DVD/blu-ray players and televisions.
The shift has been a boon for Netflix Inc., which now boasts 31 million subscribers to its Internet video service and another 7.1 million DVD-by-mail customers. The company’s success has given Netflix a market value of $20 billion.
Blockbuster absorbed huge losses. It closed thousands of its stores before landing in bankruptcy court three years ago. Dish bought Blockbuster’s remnants for about $234 million in 2011 and then tried to mount a challenge to Netflix.
But the Englewood, Colo., satellite-TV provider couldn’t wring a profit from Blockbuster either, prompting even more store closures.