Spectre Brands

GhostVideo rental stores · Dallas, Texas

Blockbuster

First store opened Oct 19, 1985. Filed for Chapter 11 on Sep 23, 2010.

It had a store within a short drive of most American homes. Then the drive stopped being necessary.

Why ghost: Blockbuster Inc. sold its assets out of Chapter 11 in 2011 and the last corporate stores closed by January 2014, but one franchised store in Bend, Oregon still rents films under the name, and blockbuster.com still shows the logo over a holding page.1327293132

Blockbuster Video store with a Store Closing banner
Nov 2013 A store in Miami Beach during its closing sale.Photo: Phillip Pessar, via Wikimedia Commons, CC BY 2.0.
Blockbuster archive image: blockbuster.com, Nov 1997
blockbuster.com, Nov 1997
Blockbuster archive image: Store closing sale, Jan 2014
Store closing sale, Jan 2014
Blockbuster archive image: The torn-ticket logo
The torn-ticket logoCropped from an Internet Archive capture of blockbuster.com. Shown for commentary; trademarks belong to their owners.

Blockbuster ended 2004 with 9,094 stores in 25 countries and just over $6 billion in revenue. That same year it borrowed heavily to pay a parting distribution as it left its parent, Viacom, and prepared to give up the late fees that had carried its profits. Six years later it filed for bankruptcy. This is the full post-mortem, built from the company’s own SEC filings, contemporary press and the archived website.

The company in four numbers

9,094
stores worldwide at the end of 2004, the peak6
$905.6M
special distribution paid to shareholders in September 2004, funded by new borrowing, just before the split from Viacom5
$320.6M
paid by Dish Network for substantially all of the assets in April 201113
1
store still trading under the name, a franchise in Bend, Oregon2931

Key findings

  1. The stores did not empty overnight. Revenue was still $5.07B in 2008, four years after the peak. What collapsed first was profit: the company reported a net loss in every year from 1997 to 2010 except 2006.26910
  2. It left Viacom carrying debt. Long-term debt went from $75.1M at the end of 2003 to $1,119.7M a year later, after a $1.15B credit facility and $300M of notes paid for a $5.00 a share distribution on the way out.56
  3. Late fees were a pillar, and it knocked the pillar out. Extended viewing fees were $692.6M in 1999, or 15.5% of revenue. Ending them in 2005 was expected to cost $250M to $300M of operating income a year.25
  4. It had a credible answer to Netflix, late. Blockbuster Online launched in August 2004 and reached about 2.2 million subscribers by the end of 2006. Netflix had 6.3 million by then.5721
  5. The name outlived everything else. Dish closed the corporate stores by January 2014. Franchisees carried on, and since 2019 the Bend store has been the only one in the world.272930

Post-mortem No. 014 · Every figure links to a numbered source · Derived figures, estimates and unverified claims are labeled

The story

Nine thousand stores, a billion of debt and a rival it would not buy

Blockbuster did not lose its customers in a single season. It lost its profits first, then its balance sheet, and only then its stores.

Chapter 1 of 6

$8.4B

value of the merger with Viacom announced on January 7, 1994

Blue and yellow Blockbuster Video membership card shaped like a torn ticket
A Blockbuster Video membership card. Via Wikimedia Commons, public domain.

1985 – 1994 · Birth

A video store built like a supermarket

The first Blockbuster opened in Dallas on October 19, 1985. Its founder, David Cook, had run a software business serving the Texas oil industry, and the store reflected it: some 8,000 tapes on open shelves and a computerised checkout, at a time when most video shops were small and thinly stocked.20 The predecessor company, Blockbuster Entertainment Corporation, had been incorporated in Delaware in 1982 and entered the rental business in 1985.1

In 1987 Cook sold part of the business to a group of investors that included Wayne Huizenga, a founder of Waste Management. Cook left later that year, Huizenga took control and the headquarters moved to Fort Lauderdale. By 1988 the chain had some 400 stores and was the largest in the country.20 On January 7, 1994 Viacom and Blockbuster announced a merger valued at $8.4 billion; it closed on September 29, 1994.141

Chapter 2 of 6

9,094

stores worldwide on December 31, 2004, the most it ever had

Commercial · 1994“Make it a Blockbuster Night” A thirty-second spot with the slogan the chain used through the 1990s. The uploader says it was recorded in 1994; we have no other date for it. Watch on YouTube

1994 – 2004 · The Viacom years

“Make it a Blockbuster night”

Under Viacom the chain roughly doubled, from 4,513 stores at the end of 1995 to 9,094 at the end of 2004.26 In 1998 it signed revenue-sharing agreements with the major studios. Until then it had paid between $60 and $70 for each rental cassette of a major release; afterwards it paid a small sum up front and shared the rental income, which let it fill the new-release wall.1

Viacom sold a minority of the company to the public on August 10, 1999: 31 million shares at $15, raising $465 million.12 It kept about 81.5%.4 The filings from these years also show what the business ran on. Extended viewing fees, the company’s term for late fees, were $692.6M in 1999, or 15.5% of revenue.2

Chapter 3 of 6

$50M

what Netflix asked for itself in September 2000, by Marc Randolph’s account

A disc in a paper envelope: the format that made the drive to the store optional. Original illustration.

2000 – 2006 · The rival

The meeting in Dallas

In September 2000, according to Netflix co-founder Marc Randolph, he, Reed Hastings and Barry McCarthy flew to Dallas to propose that Blockbuster buy Netflix. Asked for a number, Hastings said fifty million. Randolph writes that John Antioco, Blockbuster’s chief executive, “was struggling not to laugh.”18 The account is Randolph’s; Blockbuster’s filings do not mention the meeting.

Blockbuster’s own filings show how the threat was read later. The FY2003 annual report called Netflix “our primary domestic competitor in online rental” and warned that rental services with no late fees “could reduce the number of consumers who obtain product from our stores.”4 Blockbuster Online launched in August 2004.5 It had about 1.2 million subscribers at the end of 2005 and about 2.2 million at the end of 2006, after Total Access let customers swap mailed discs in stores.67 Netflix had 6.3 million.21

Chapter 4 of 6

$1.04B

rise in long-term debt during 2004, the year of the split from Viacom (derived)

Commercial · 2005“No more late fees” The campaign for the policy that took effect on January 1, 2005. The company had projected that late fees would have been worth $250M to $300M of operating income that year.5 Year as given by the uploader. Watch on YouTube

2004 – 2007 · Debt, late fees and Carl Icahn

Independent, indebted and under new management

Viacom decided in February 2004 to divest its stake.4 Before the split-off was completed that October, Blockbuster took out a $1,150M credit facility, issued $300M of 9% notes and paid shareholders, chiefly Viacom, a special distribution of $5.00 a share, about $905.6M.5 Long-term debt rose from $75.1M at the end of 2003 to $1,119.7M a year later.6

On January 1, 2005 it stopped charging late fees at more than 4,500 company stores. Its own projection was that the fees would have brought in $400M to $450M of revenue and $250M to $300M of operating income that year.5 In May 2005 Carl Icahn and two allies were elected to the board, displacing Antioco as a director until the board reappointed him.15 After a dispute over his 2006 bonus, Antioco agreed to leave, and James Keyes, formerly of 7-Eleven, became chairman and chief executive on July 2, 2007.1716

Chapter 5 of 6

$320.6M

paid by Dish Network for substantially all of the assets, April 26, 2011

Blockbuster Video storefront in Miami Beach with a yellow Store Closing banner
A Blockbuster Video in Miami Beach during its closing sale, November 2013. Photo: Phillip Pessar, via Wikimedia Commons, CC BY 2.0.

2008 – 2011 · Collapse

Chapter 11, then an auction

Revenue held above $5B through 2008, then fell to $4.06B in 2009 and $3.24B in 2010.910 The company closed 374 U.S. company-owned stores in 2009, and its FY2009 annual report said that conditions “raise substantial doubt about our ability to continue as a going concern.”9 By then Redbox was running some 30,200 kiosks and Netflix had 20 million subscribers.2422

On September 23, 2010 Blockbuster and its U.S. subsidiaries filed for Chapter 11 in New York, with a plan to cut debt “from nearly $1 billion currently to an estimated $100 million or less.”11 The plan did not hold. The assets went to auction on April 6, 2011, Dish Network won, and the sale closed on April 26 for $320.6M. Stockholders received nothing.1213

Chapter 6 of 6

1

Blockbuster store left in the world, at 211 NE Revere Avenue, Bend, Oregon

Storefront of the last Blockbuster in Bend, Oregon, with yellow block letters on a shingled roof
The Bend store. Photo: UpdateNerd, via Wikimedia Commons, CC0.

2011 – today · The ghost

One store in Oregon

Dish kept closing stores, and on November 6, 2013 it announced that the remaining 300 or so company-owned U.S. stores would shut by early January, along with the DVD-by-mail service. About 2,800 jobs went. About 50 franchised stores stayed open.2728

They closed one by one. The two in Alaska shut in 2018 and the last overseas store, in Perth, Australia, in 2019, leaving a franchise in Bend, Oregon that had opened in 1992 as Pacific Video and become a Blockbuster in 2000.2930 A documentary about it, The Last Blockbuster, reached Netflix on March 15, 2021.30 The store’s website was live when we checked on October 3, 2026, listing new releases for rent and a line of merchandise under the heading “The Lone Survivor.”31

Timeline

Forty-four years, 35 moments

From the predecessor’s incorporation to the one store still open, with the money and the rivals alongside. Filter by thread.

All 35 events as a list
  1. 19821982
    Corporate

    Predecessor incorporated

    Blockbuster Entertainment Corporation is incorporated in Delaware. It enters the movie rental business three years later.1

  2. Oct 191985
    Corporate

    First store opens in Dallas

    David Cook opens the first Blockbuster with some 8,000 tapes and a computerised checkout.20

  3. 19871987
    Corporate

    Huizenga’s group buys in

    Cook sells part of the business to investors including Wayne Huizenga, leaves later that year, and the headquarters moves to Fort Lauderdale.20

  4. 19881988
    Corporate

    Largest chain in the country

    About 400 stores.20

  5. Jan 71994
    Money

    Viacom merger announced

    A merger valued at $8.4 billion, agreed while Viacom was bidding for Paramount.14

  6. Sep 29
    Corporate

    Merger completed

    Blockbuster Entertainment Corporation is merged into Viacom.1

  7. 19981998
    Product

    Revenue sharing with the studios

    Instead of paying $60 to $70 a cassette, Blockbuster pays a small sum up front and shares rental income.1

  8. Aug 101999
    Money

    Initial public offering

    31 million class A shares are sold at $15, raising $465M. Viacom keeps control.12

  9. Dec 31
    Money

    Late fees reach $692.6M

    Extended viewing fees for 1999 are 15.5% of revenue.2

  10. Sep2000
    Rivals

    Netflix asks $50M

    By Marc Randolph’s account, Netflix’s founders propose a sale to Blockbuster in Dallas and are turned down.18

  11. Feb 102004
    Corporate

    Viacom decides to divest

    Viacom announces it will pursue the divestiture of its approximately 81.5% stake.4

  12. Aug
    Product

    Blockbuster Online launches

    A DVD-by-mail subscription service in the United States, seven years after Netflix was founded.520

  13. Aug 20
    Money

    $1.45B of new financing

    A $1,150M senior secured credit facility and $300M of 9% senior subordinated notes.5

  14. Sep 3
    Money

    $5.00 a share special distribution

    About $905.6M in total is paid to shareholders ahead of the split-off.5

  15. Oct
    Corporate

    Split-off from Viacom

    Blockbuster becomes a fully independent company.5

  16. Dec 31
    Corporate

    Peak: 9,094 stores

    The highest year-end store count in the company’s history.6

  17. Jan 12005
    Product

    “The end of late fees”

    Extended viewing fees end at more than 4,500 company stores and about 550 franchise stores. Items kept past a one-week grace period are sold to the customer.5

  18. Feb 4
    Rivals

    Bid for Hollywood Video

    Blockbuster offers $14.50 a share for Hollywood Entertainment. It lets the offer expire on March 24, citing antitrust clearance.5

  19. Apr
    Rivals

    Movie Gallery buys Hollywood

    The combined company has about 4,800 stores.25

  20. May 11
    Corporate

    Icahn wins board seats

    Carl Icahn, Edward Bleier and Strauss Zelnick are elected, replacing three incumbents including chairman John Antioco.15

  21. Apr 42006
    Rivals

    Netflix sues

    Netflix files a patent suit over Blockbuster’s online service.7

  22. Nov 1
    Product

    Total Access

    Online subscribers can return mailed DVDs to a store and take a free rental. Subscribers pass 2 million by year-end.7

  23. Mar 192007
    Corporate

    Antioco’s exit agreed

    A settlement over his 2006 bonus sets the end of his employment.17

  24. Jul 2
    Corporate

    Jim Keyes becomes CEO

    The former chief executive of 7-Eleven is named chairman and chief executive.16

  25. 20082008
    Product

    Kiosks with NCR

    An agreement to put Blockbuster-branded vending kiosks in retail locations. There were 2,225 by January 2010.9

  26. Mar 162010
    Death & afterlife

    Going-concern warning

    The FY2009 annual report cites “substantial doubt” about the company’s ability to continue. It closed 374 U.S. stores in 2009.9

  27. May 10
    Rivals

    Movie Gallery liquidates

    The owner of Hollywood Video moves to close its remaining 1,900-plus stores.26

  28. Sep 23
    Death & afterlife

    Chapter 11

    Blockbuster Inc. and its U.S. subsidiaries file in the Southern District of New York, case 10-14997, with $125M of bankruptcy financing.11

  29. Apr 62011
    Death & afterlife

    Dish wins the auction

    Dish Network’s bid of about $320M is selected as the highest and best.12

  30. Apr 26
    Death & afterlife

    Sale closes at $320.6M

    The estate expects about $226M net. Keyes and other executives are terminated the same day.13

  31. Nov 62013
    Death & afterlife

    Dish closes the stores

    The last 300 or so company-owned U.S. stores and the by-mail service are to shut by early January 2014.2728

  32. 20182018
    Death & afterlife

    Alaska stores close

    The Bend, Oregon franchise becomes the last Blockbuster in the United States.30

  33. Mar2019
    Death & afterlife

    Perth closes

    The Bend store becomes the last in the world.29

  34. Mar 152021
    Corporate

    The Last Blockbuster on Netflix

    The documentary about the Bend store reaches the service that replaced it.30

  35. Oct 32026
    Corporate

    Still open

    The Bend store’s website lists current releases. blockbuster.com shows the logo and a holding page.3132

The last Blockbuster storefront in Bend, Oregon
Undated The last store, in Bend, Oregon.Photo: UpdateNerd, via Wikimedia Commons, CC0.

Part 2 of 6

Business

The numbers · Rivals

The money

Sixteen years of filings: the stores, the losses and the debt

Blockbuster’s revenue peaked at $6.05B in 2004. Its profits had peaked long before. The company reported a net loss in thirteen of the fourteen years from 1997 to 2010.

The rise and fall, in stores

Company-operated and franchised stores worldwide at each year end.

02,5005,0007,50010,00019951997199920012003200520072010123405,00010,000199519992003200720101234
  1. 1999 · 1999: the IPO Viacom sells 31 million shares at $15. The chain has 7,153 stores and late fees are 15.5% of revenue.12
  2. 2004 · 2004: the peak 9,094 stores. The same year brings the split from Viacom, $1.45B of new financing and the launch of Blockbuster Online.56
  3. 2006 · 2006: the retreat begins The count falls by 682 in a year, to 8,360 (difference derived).68
  4. 2010 · 2010: Chapter 11 5,335 stores at the first year end in bankruptcy, 41% below the peak (derived).10
Data table
The rise and fall, in stores
Year endStores worldwide
19954,513
19965,317
19976,049
19986,381
19997,153
20007,677
20017,981
20028,545
20038,867
20049,094
20059,042
20068,360
20077,830
20087,405
20096,520
20105,335
Year-end store counts from the selected financial data in Blockbuster’s 10-Ks: 1995–19992, 20003, 2001–20056, 2006–20078, 2008–20099, 201010. The fiscal year ended in early January from 2007 onward.

The balance sheet at the split

$75.1M
long-term debt on December 31, 2003, while still controlled by Viacom6
$1,119.7M
long-term debt on December 31, 2004, after the split-off financing6
$905.6M
paid out as a $5.00 a share special distribution on September 3, 20045
$631.6M
stockholders’ equity at the end of 2005, down from $3,188.4M two years earlier6
Blockbuster 10-Ks for FY2004 and FY2005.56

Revenue and net income, 1995–2010

$ millions. Bars are revenue; the line is net income or loss.

Data table
Revenue and net income, 1995–2010
PeriodNet income (loss)Revenue
1995$142.9M$2403.3M
1996$77.8M$2942.1M
1997$-318.2M$3313.6M
1998$-336.6M$3893.4M
1999$-69.2M$4463.5M
2000$-75.9M$4960.1M
2001$-238.8M$5156.7M
2002$-1621.1M$5565.9M
2003$-978.7M$5911.7M
2004$-1248.8M$6053.2M
2005$-588.1M$5864.4M
2006$50.5M$5337.6M
2007$-73.8M$5314M
2008$-374.1M$5065.4M
2009$-558.2M$4062.4M
2010$-268M$3240.7M
Selected financial data in the 10-Ks: 1995–19992, 20003, 2001–20056, 2006–20099, 201010. Revenue for 2006–2009 is on the restated basis of the FY2009 10-K, which excludes discontinued operations; see the data notes. The large losses of 2002–2004 are mostly non-cash: a $1,817.0M charge for a change in accounting principle in 2002, and impairments of goodwill and other long-lived assets of $1,304.9M in 2003 and $1,504.4M in 2004.6

Long-term debt at year end

$ millions.

Data table
Long-term debt at year end
PeriodLong-term debt
1998$1715.2M
1999$1138.4M
2000$1136.5M
2001$546.4M
2002$408.7M
2003$75.1M
2004$1119.7M
2005$1121.6M
FY1999, FY2000 and FY2005 10-Ks.236 Figures to 2000 exclude the current portion; from 2001 they include capital leases.

The parting distribution, in Netflixes

$905.6Mspecial distribution, September 2004
=
18 ×Netflix’s asking price in 2000, by Marc Randolph’s account ($50M)

Derived $905.6M ÷ $50M = 18.1, shown as 18 coins. The distribution is from the FY2004 10-K5; the $50M is Randolph’s recollection18.

Data table
The parting distribution, in Netflixes
Value
special distribution, September 2004$905.6M
Netflix’s asking price in 2000, by Marc Randolph’s account$50M
Ratio18 (derived)
FY2004 10-K5; Vanity Fair excerpt of Marc Randolph’s book18.
What late fees were worth
$692.6Mextended viewing fees in 1999, up $108.7M on 19982
15.5%of 1999 revenue, up from 15.0% in 1998 and 12.2% in 19972
$250–300Moperating income the company projected late fees would have contributed in 2005 (company estimate)5
$1.25restocking fee if an item was returned within 30 days of being sold to the customer under “no late fees”5
FY1999 and FY2004 10-Ks.25 The often-quoted $800M for 2000 is unverified; see the data notes.

Three ways to rent a film, 2010

Revenue in the year Blockbuster filed for bankruptcy, $ millions.

Blockbuster (stores, mail, kiosks, digital)
$3240.7M
Down from $6,053.2M in 2004.106
Netflix (mail and streaming)
$2162.6M
Up from $500.6M in 2004.2221
Redbox (kiosks)
$1160.1M
Coinstar’s DVD Services segment, up from $388.5M in 2008.24
Data table
Three ways to rent a film, 2010
Company2010 revenueNote
Blockbuster (stores, mail, kiosks, digital)$3240.7MDown from $6,053.2M in 2004.
Netflix (mail and streaming)$2162.6MUp from $500.6M in 2004.
Redbox (kiosks)$1160.1MCoinstar’s DVD Services segment, up from $388.5M in 2008.
Blockbuster FY2010 10-K10, Netflix FY2010 10-K22, Coinstar FY2010 10-K24.

The rivals

Who won, and who went first

Blockbuster outlived the chains it had beaten. Hollywood Video and Movie Gallery were liquidated months before Blockbuster filed. The businesses that replaced all three did not rent from a shop.

Five ways to rent a film. One is still growing.

The video rental field, and what became of each.

Blockbuster

Ghost
1995: 4,5132010: 5,335
9,094 stores At the 2004 peak. Chapter 11 in 2010, sold to Dish in 2011, one franchise left.6111331

Netflix

Survived
2002: $150.8M2010: $2.16B
$45.18B Revenue in 2025. It had 857,000 subscribers at the end of 2002 and 20 million at the end of 2010.232122

Redbox

Liquidated 2024
2008: $388.5M2010: $1.16B
30,200 kiosks At the end of 2010, with $1.16B of revenue. Shut down in July 2024 when its last owner’s bankruptcy became a liquidation.2434

Hollywood Video

Bought, then closed
$850M Price Movie Gallery paid in 2005, after Blockbuster let its own $14.50 a share offer lapse. Liquidated with its parent in 2010.265

Movie Gallery

Liquidated 2010
4,800 stores After buying Hollywood. It entered bankruptcy in October 2007 and moved to close its last 1,900-plus stores in May 2010.2526
Data table
Five ways to rent a film. One is still growing.
CompanyOutcomeHeadline figureNotesSeries
BlockbusterGhost9,094 storesAt the 2004 peak. Chapter 11 in 2010, sold to Dish in 2011, one franchise left.4513, 6049, 7153, 7981, 8867, 9094, 8360, 7405, 5335
NetflixSurvived$45.18BRevenue in 2025. It had 857,000 subscribers at the end of 2002 and 20 million at the end of 2010.150.8, 270.4, 500.6, 682.2, 996.7, 1205.3, 1364.7, 1670.3, 2162.6
RedboxLiquidated 202430,200 kiosksAt the end of 2010, with $1.16B of revenue. Shut down in July 2024 when its last owner’s bankruptcy became a liquidation.388.5, 773.5, 1160.1
Hollywood VideoBought, then closed$850MPrice Movie Gallery paid in 2005, after Blockbuster let its own $14.50 a share offer lapse. Liquidated with its parent in 2010.
Movie GalleryLiquidated 20104,800 storesAfter buying Hollywood. It entered bankruptcy in October 2007 and moved to close its last 1,900-plus stores in May 2010.
Company filings and press as cited. Sparklines: Blockbuster year-end stores268910; Netflix annual revenue 2002–20102122; Redbox (Coinstar DVD Services) revenue 2008–201024.

Netflix subscribers against Blockbuster Online

Millions of subscribers at year end. Blockbuster reported its online count only for the years shown.

Data table
Netflix subscribers against Blockbuster Online
PeriodNetflixBlockbuster Online
20020.857n/a
20031.487n/a
20042.61n/a
20054.1791.2
20066.3162.2
20077.479n/a
20089.39n/a
200912.268n/a
201020.01n/a
Netflix FY2006 and FY2010 10-Ks2122. Blockbuster: about 1.2 million at December 31, 2005 and about 2.2 million at December 31, 200667. Blockbuster also reported more than 750,000 on March 9, 20055.
Ghost

Blockbuster

Founded
198520
2004 revenue
$6,053.2M6
2010 revenue
$3,240.7M10
Online subscribers, end 2006
about 2.2M7
Long-term debt, end 2004
$1,119.7M6
Outcome
Chapter 11, Sep 2010; sold for $320.6M1113
Alive

Netflix

Founded
199720
2004 revenue
$500.6M21
2010 revenue
$2,162.6M22
Subscribers, end 2006
6.3M21
Subscribers, end 2010
20.0M22
Outcome
$45.18B of revenue in 202523

Blockbuster tried to buy Hollywood Entertainment in early 2005, offering $11.50 in cash and $3.00 in stock per share. It let the offer expire on March 24, 2005, citing “the unlikely resolution of the Company’s request for regulatory clearance on an acceptable timetable.”5

Part 3 of 6

Brand

Commercials & footage · Old website · Brand gallery

Commercials & footage

Friday night, as advertised

Two decades of television: the slogan from the 1990s, the pet shop animals, the end of late fees, the answer to Netflix, and three news reports on the way down.

Commercial · 1994“Make it a Blockbuster Night” A thirty-second spot with the slogan the chain used through the 1990s. The uploader says it was recorded in 1994; we have no other date for it. Watch on YouTube
Commercial · 2002Carl and Ray: seven spots Seven spots from the Carl and Ray campaign. According to the uploader it ran through 2002 and 2003, with the voices of Jim Belushi and James Woods. Watch on YouTube
Commercial · 2005“No more late fees” The campaign for the policy that took effect on January 1, 2005. The company had projected that late fees would have been worth $250M to $300M of operating income that year.5 Year as given by the uploader. Watch on YouTube
Commercial · 2007Blockbuster Total Access A spot for the service launched on November 1, 2006, which let online subscribers exchange mailed discs in a store.7 Uploaded in February 2008; the airing year is our reading of the upload date and the campaign. Watch on YouTube
News segment · 2009Associated Press: “Blockbuster May Close Over 900 US Stores” A wire report published on September 16, 2009, a year before the bankruptcy filing. The company closed 374 U.S. stores in 2009.9 Watch on YouTube
News segment · 2013The Wall Street Journal: “Blockbuster Closes Remaining Stores, End of an Era” Published on November 6, 2013, the day Dish Network announced it would close the last 300 or so company-owned stores.27 Watch on YouTube
News segment · 2018CBS Mornings: “Visiting America’s last Blockbuster store” Published on July 17, 2018, as the two Alaska stores prepared to close and the Bend franchise became the last in the country.30 Watch on YouTube

Videos are embedded from the services that host them and load only when you press play. YouTube embeds use youtube-nocookie.com. Each video belongs to its uploader or rights holder and is shown here for commentary; we do not host any of the files. Videos are embedded from YouTube and load only when you press play. Airing years for the commercials come from the uploaders unless stated.

The old website

What customers actually saw

These are screenshots of pages saved by the Internet Archive’s Wayback Machine, stored as images. Click one to open the original capture. Captures from 2005 and 2007–2010 were maintenance pages or rendered without their images or Flash, so they are not shown.33

Screenshot of http://www.blockbuster.com/ as archived Nov 10, 1997

Captured Nov 10, 1997

A rendered lobby

The earliest capture with images: an image map of a store lobby with doors marked video, music, books, games and news, and a link to a store locator. Nothing is for rent online.

Open this capture on the Wayback Machine

Text preserved in the archived pages

MUSIC · VIDEO · GAMES · BOOKS · BOX OFFICE … “New: The Lost World” · “Coming Soon: Con-Air”
Home page · Nov 10, 199733
“Theaters are crowded, the floors are sticky, and those rude people keep talking! Enjoy all the hottest films in your own living room with BLOCKBUSTER® and DIRECTV®”
Home page · Oct 17, 200033
“Online Rental is currently available in Austin, TX and Denver, CO.”
Home page · Oct 17, 200033
“No Late Fees · More Than 55,000 Titles · Free Shipping Both Ways · Each Month You’ll Get Up to 4 FREE In-Store Rentals” · “As low as $9.99/mo.”
Blockbuster Online · Jun 14, 200633
“FINAL 4 DAYS! Save up to 90%. In store only! Store closing sale. All must go!” · “Previously viewed DVDs & Blu-rays 99¢ (Ends 1/12/14)”
Home page · Jan 9, 201433

Screenshots of Internet Archive captures, cropped to the page. The 1997 page credits “Blockbuster Technology - Online Group and Viacom Interactive Services.”

Part 4 of 6

People

People · Press

The people

Who ran it

Roles and dates are from filings and the cited accounts. Later careers are included only where we found a source.

People (8)
Name and roleWhat they didAfterwards
David CookFounder, 1985 – 1987

Came from a software business serving the Texas oil industry. Opened the first store in Dallas with some 8,000 tapes and a computerised checkout, and left in 1987 after selling part of the company.20

Wayne HuizengaInvestor and leader, 1987 – 1994

A founder of Waste Management. His group bought in during 1987, he took control and moved the headquarters to Fort Lauderdale, and the chain grew by acquisition and new openings until the Viacom merger.20

John F. AntiocoChief executive, 1997 – 2007

Took the company public in 1999, ended late fees and launched Blockbuster Online and Total Access. Lost his board seat to Carl Icahn’s slate in May 2005 and was reappointed chairman two days later.15197

Wrote in 2011 that he invests in retail franchise concepts.19
Carl C. IcahnDirector from May 2005

By Antioco’s account he had bought nearly 10 million shares by early 2005. He won election with Edward Bleier and Strauss Zelnick at the annual meeting on May 11, 2005.1915

James W. KeyesChairman and chief executive, 2007 – 2011

Former president and chief executive of 7-Eleven, appointed on July 2, 2007 at age 52. He led the company into Chapter 11 and was terminated when the sale to Dish closed on April 26, 2011.161113

Edward B. SteadGeneral counsel

Spoke for the company at the 2005 annual meeting.15 In Marc Randolph’s account he is the executive who asked Netflix to name its price in 2000.18

Reed Hastings and Marc RandolphNetflix co-founders

By Randolph’s account they offered Netflix to Blockbuster for $50M in September 2000.18

Netflix reported $45.18B of revenue for 2025.23
Sandi HardingGeneral manager, Bend store

Runs the last store for its owners, Ken and Debbie Tisher, and is the central figure of The Last Blockbuster.30

The clippings

What they said at the time

Press (9)
John Antioco was struggling not to laugh.
Marc Randolph, Netflix co-founder, on the September 2000 meeting, in That Will Never Work, excerpted in Vanity Fair, 201918
These factors raise substantial doubt about our ability to continue as a going concern.
Blockbuster Inc., FY2009 annual report, March 20109

  1. John Antioco, as recalled by Marc Randolph18

    The dot-com hysteria is completely overblown.

  2. Blockbuster Inc., FY2003 annual report, March 20044

    We are determined, however, to gain appropriate market share in the online rental subscription business, regardless of the expected negative short-term impact on our operating results.

  3. John Antioco, on the day he lost his board seat, May 11, 200515

    Blockbuster is a world class brand that I believe has great potential for future success.

  4. John Antioco, Harvard Business Review, April 201119

    When my assistant came into my office in early 2005 and told me that Carl Icahn was on the phone, it was a complete surprise.

  5. Jim Keyes, Chapter 11 press release, September 23, 201011

    The recapitalized Blockbuster will move forward better able to leverage its strong strategic position, including a well-established brand name, an exceptional library of more than 125,000 titles, and our position as the only operator that provides access across multiple delivery channels – stores, kiosks, by-mail and digital.

  6. Associated Press, November 6, 201327

    Dish Network’s retreat will render Blockbuster’s once-ubiquitous brand nearly extinct.

  7. Sandi Harding, manager of the Bend store, to The Bulletin, as quoted by the Associated Press, March 202130

    We’ll take a little crazy if it means keeping the store open.
Interior of the last Blockbuster with shelves of DVDs
Undated Inside the Bend store: the aisles, the carpet and the new-release wall.Photo: Coasterlover1994, via Wikimedia Commons, CC BY-SA 4.0.

Part 5 of 6

Verdict

Cause of death · What if · Afterlife

Cause of death

The autopsy

Tap a cause to see the evidence. The percentages are our editorial weighting. The evidence under each one is sourced.

Cause of death, by editorial weight

One square is one percentage point. The weights are our judgment, not a measurement.

  1. 35%The trip to the store stopped being necessary
  2. 25%Debt taken on to leave Viacom
  3. 15%A profit model built on late fees
  4. 15%A late and interrupted response
  5. 10%Too many leases
Data table
Cause of death, by editorial weight
CauseWeight
The trip to the store stopped being necessary35%
Debt taken on to leave Viacom25%
A profit model built on late fees15%
A late and interrupted response15%
Too many leases10%

Mail, kiosks and then streaming each removed a reason to drive to a shop. Netflix grew from 857,000 subscribers at the end of 2002 to 20 million at the end of 2010, and Redbox had some 30,200 kiosks by then. Blockbuster’s store count fell 41% from its peak over the same years.212224610

Long-term debt rose from $75.1M to $1,119.7M in 2004, the year of a $905.6M distribution to shareholders. The company went into its fight with Netflix and Redbox owing about a billion dollars, and still owed “nearly $1 billion” when it filed.5611

Extended viewing fees were $692.6M in 1999. Competitors sold the absence of late fees, and when Blockbuster matched them in 2005 it expected to forgo $250M to $300M of operating income a year.245

Blockbuster Online launched in August 2004, when Netflix already had 2.6 million subscribers. Total Access took it past 2 million by the end of 2006, but the chief executive who built it left in 2007 after a board fight and a bonus dispute.57211517

More than 9,000 stores were an asset while customers came to them and a fixed cost when they did not. The company closed 374 U.S. stores in 2009 alone, and Dish Network later said that too few stores remained to carry the corporate overhead.928

Editorial judgment: the weights are an interpretive model by the Spectre Brands editors, not a measured quantity. The filings document the symptoms. How much each one contributed is a matter of opinion.

The fork in the road

What if…

Three decisions where the story could have gone differently. The “What if” panels are speculation, labeled as such.

What happened

By Marc Randolph’s account, Netflix offered itself to Blockbuster for $50M in September 2000 and was turned down.18 Blockbuster launched its own online service in August 2004.5 By the end of 2006 it had about 2.2 million online subscribers to Netflix’s 6.3 million.721

What if speculative

A purchase would have given Blockbuster a four-year head start by mail. It would not have guaranteed the rest. Netflix inside Blockbuster would have answered to a company that earned $692.6M a year from late fees2, and the subscription model’s selling point was that it had none. The more likely outcome is a smaller Netflix, not a surviving Blockbuster.

What happened

Before the 2004 split-off Blockbuster borrowed under a $1,150M facility, issued $300M of notes and paid a $905.6M special distribution. Long-term debt ended the year at $1,119.7M.56

What if speculative

Without the distribution the company would have entered 2005 nearly debt-free, with room to fund Blockbuster Online and absorb the loss of late fees at the same time. It was losing customers either way, but the 2010 filing was a balance-sheet event: the plan’s stated purpose was to cut debt from nearly $1 billion to $100 million or less.11

What happened

Total Access launched on November 1, 2006 and took online subscribers past 2 million within two months.7 John Antioco, who had backed it, agreed in March 2007 to leave, and James Keyes replaced him that July.1716 Antioco later wrote about the disagreement with Carl Icahn’s board.19

What if speculative

The offer of free in-store exchanges was something Netflix could not copy, and it was expensive for the same reason. Kept at full strength it might have held more subscribers into the streaming years. Whether a company with a billion dollars of debt could have afforded to keep paying for it is the open question.

Where are they now

The afterlife

Blockbuster

  1. The Bend store

    Still open

    A franchise at 211 NE Revere Avenue in Bend, Oregon, owned by Ken and Debbie Tisher and managed by Sandi Harding. It opened in 1992 as Pacific Video, became a Blockbuster in 2000, and has been the only one in the world since 2019.2930 Its website was live on October 3, 2026, with current releases and merchandise.31

  2. The brand

    Shelved

    Dish Network bought it with the rest of the assets in 2011 and used it for a streaming package, Blockbuster@Home.1328 Dish became part of EchoStar on December 31, 2023.36 On October 3, 2026 blockbuster.com showed the logo, the line “We are working on rewinding your movie” and a link to Sling TV.32

  3. The corporate stores

    Closed

    About 300 were left when Dish announced the end on November 6, 2013. They were to close by early January 2014, with about 2,800 jobs lost.27 The Mexican business was sold on January 14, 2014.28

  4. The shareholders

    Wiped out

    The company said it expected no proceeds from the sale to be available to preferred or common stockholders and that all classes of stock would be cancelled.13

  5. The management

    Dismissed

    James Keyes and three other senior executives were terminated on April 26, 2011, the day the sale closed.13 John Antioco wrote in 2011 that he now invests in retail franchise concepts.19

  6. The rival it did not buy

    Vindicated

    Netflix reported revenue of $45.18B for 2025.23

Who has owned the name

From a founder in Dallas to a satellite television company, by way of a bankruptcy court.

  1. 1985

    David Cook

    Opens the first store in Dallas.20

  2. 1987

    Wayne Huizenga and partners

    Buy into the business and take control within the year.20

  3. 1994

    Viacom

    Merger announced January 7, completed September 29.141

    $8.4B
  4. 1999 – 2004

    Public shareholders

    IPO in August 1999; full independence after the split-off in October 2004.15

  5. Sep 2010

    Chapter 11

    Blockbuster Inc. files in New York with nearly $1 billion of debt.11

  6. Apr 2011

    Dish Network

    Buys substantially all of the assets at auction.13

    $320.6M
  7. Today

    Dish Network (EchoStar)

    Holds the brand. One franchised store in Bend, Oregon trades under it.363132

Data table
Who has owned the name
WhenOwnerWhat happenedPrice
1985David CookOpens the first store in Dallas.
1987Wayne Huizenga and partnersBuy into the business and take control within the year.
1994ViacomMerger announced January 7, completed September 29.$8.4B
1999 – 2004Public shareholdersIPO in August 1999; full independence after the split-off in October 2004.
Sep 2010Chapter 11Blockbuster Inc. files in New York with nearly $1 billion of debt.
Apr 2011Dish NetworkBuys substantially all of the assets at auction.$320.6M
TodayDish Network (EchoStar)Holds the brand. One franchised store in Bend, Oregon trades under it.
SEC filings and press as cited. The price paid by Huizenga’s group is not stated because we did not find it in a primary source.

Sources & data notes

Show your work

Primary sources first. SEC filings link to the original text on EDGAR (Blockbuster Inc., CIK 1085734).

  1. Blockbuster Inc. — Final Prospectus (424B4), Aug 11, 1999.
  2. Blockbuster Inc. — Form 10-K405, FY1999, filed Mar 24, 2000.
  3. Blockbuster Inc. — Form 10-K405, FY2000, filed Mar 29, 2001.
  4. Blockbuster Inc. — Form 10-K, FY2003, filed Mar 15, 2004.
  5. Blockbuster Inc. — Form 10-K, FY2004, filed Mar 29, 2005.
  6. Blockbuster Inc. — Form 10-K, FY2005, filed Mar 15, 2006.
  7. Blockbuster Inc. — Form 10-K, FY2006, filed Mar 1, 2007.
  8. Blockbuster Inc. — Form 10-K, FY2007, filed Mar 6, 2008.
  9. Blockbuster Inc. — Form 10-K, FY2009, filed Mar 16, 2010.
  10. Blockbuster Inc. — Form 10-K, FY2010, filed Jul 13, 2011.
  11. Blockbuster Inc. — Form 8-K, Chapter 11 filing and press release (Ex. 99.1), Sep 23, 2010.
  12. Blockbuster Inc. — Form 8-K, auction result and DISH agreement, filed Apr 12, 2011.
  13. Blockbuster Inc. — Form 8-K, completion of the sale to DISH, filed May 9, 2011.
  14. Viacom Inc. — Form 8-K with the joint press release “Blockbuster and Viacom Announce $8.4 Billion Merger”, Jan 7, 1994.
  15. Blockbuster Inc. — Press release, “Blockbuster Confirms Preliminary Results of Board Election” (8-K Ex. 99.1), May 11, 2005.
  16. Blockbuster Inc. — Form 8-K, appointment of James W. Keyes, Jul 2, 2007.
  17. Blockbuster Inc. — Form 8-K, settlement with John F. Antioco, filed Mar 20, 2007.
  18. Marc Randolph, in Vanity Fair — “He ‘Was Struggling Not to Laugh’: Inside Netflix’s Crazy, Doomed Meeting With Blockbuster”, Sep 17, 2019. An excerpt from his book That Will Never Work.
  19. John Antioco, in Harvard Business Review — “How I Did It: Blockbuster’s Former CEO on Sparring with an Activist Shareholder”, Apr 2011.
  20. History.com — “First Blockbuster store opens,” October 19, 1985.
  21. Netflix, Inc. — Form 10-K, FY2006, filed Feb 28, 2007.
  22. Netflix, Inc. — Form 10-K, FY2010, filed Feb 18, 2011.
  23. Netflix, Inc. — Form 10-K, FY2025, filed Jan 23, 2026.
  24. Coinstar, Inc. (owner of Redbox) — Form 10-K, FY2010, filed Feb 10, 2011.
  25. Movie Gallery, Inc. — Form 10-K, FY2005, filed Mar 24, 2006.
  26. Associated Press, in The Herald (Everett) — “No. 2 video rental company to close all remaining stores”, May 10, 2010.
  27. Associated Press, on NBC News — “Blockbuster fades to black, last stores to be shuttered”, Nov 6, 2013.
  28. DISH Network Corp. — Form 10-K, FY2013, filed Feb 21, 2014.
  29. Fortune — “Bend, Ore. Now Home to the Last Blockbuster Store on Earth”, Mar 7, 2019.
  30. Associated Press, on KATU — “The last Blockbuster in Bend more popular after Netflix documentary”, Mar 30, 2021.
  31. The Bend store’s own website — bendblockbuster.com, viewed Oct 3, 2026.
  32. blockbuster.com, viewed Oct 3, 2026.
  33. Internet Archive Wayback Machine — captures of blockbuster.com: Nov 10, 1997, Oct 17, 2000, Jun 14, 2006, Jan 9, 2014.
  34. CNN Wire, on ABC7 Los Angeles — “Redbox DVD kiosk-rental business shuts down after parent company files for bankruptcy”, Jul 12, 2024.
  35. KTVZ (Bend) — “World’s Last Blockbuster in Bend still seeing surge in sales, visitors sparked by online Super Bowl ad”, Feb 28, 2023.
  36. EchoStar Corp. — Form 10-K, FY2025, filed Mar 2, 2026.
Data notes (8)

Data notes

Editorial: the year of death: We set the end of the original business at 2010, the year Blockbuster Inc. filed for Chapter 11 (September 23).11 The stores kept trading under Dish Network until January 2014, and a franchise still trades today, which is why the tier is ghost. The start year, 1985, is the first store; the predecessor company was incorporated in 1982.1

Derived: Cumulative net loss, 1997–2010, of about $6.70B is the sum of the annual net losses less the one profitable year: 318.2 + 336.6 + 69.2 + 75.9 + 238.8 + 1,621.1 + 978.7 + 1,248.8 + 588.1 − 50.5 + 73.8 + 374.1 + 558.2 + 268.0 = $6,699.0M.236910 Most of it is non-cash write-downs of goodwill. The $905.6M distribution divided by Netflix’s $50M asking price is 18.1.518 The fall in stores from 9,094 to 5,335 is 41%.610 The rise in long-term debt in 2004 is $1,119.7M − $75.1M = $1,044.6M.6 “25 countries” is the United States plus the 24 other countries in the FY2004 10-K.5 “Days from the first store to the filing” and similar intervals are counted from the cited dates.

Basis changes in the filings: Revenue for 1995–2005 is as reported in the FY1999, FY2000 and FY2005 10-Ks.236 Revenue for 2006–2009 is from the FY2009 10-K, which restated earlier years to remove discontinued operations (on that basis 2005 was $5,551.1M, against $5,864.4M as first reported).9 2010 is from the FY2010 10-K.10 Long-term debt before 2001 is shown “less current portion”; from 2001 it is “including capital leases”.36 Net loss for 2005 is $588.1M as first reported and $583.9M as restated.

Estimates: Blockbuster’s own projection, made in March 2005, was that late fees would have contributed $400M to $450M of revenue and $250M to $300M of operating income in 2005.5 It is a company estimate, not a reported result. The “nearly $1 billion” of debt at the filing is the company’s wording.11

Unverified: The widely repeated figure of about $800M of late-fee income in 2000 is unverified: we could not find it in the FY2000 10-K. The last year for which we found the figure in a filing is 1999, at $692.6M.2 The account of the September 2000 meeting at which Netflix asked $50M is Marc Randolph’s, published in 2019; we found no Blockbuster filing or statement that confirms or disputes it.18 The airing years of the commercials come from the uploaders. We did not find the size of David Cook’s stake sale in 1987 or the price Wayne Huizenga’s group paid in a primary source, so neither is stated.

Unknown: The terms on which the Bend store uses the name are not public, and we found no current statement from Dish or EchoStar about its plans for the brand. EchoStar’s FY2025 10-K does not mention Blockbuster.36 The number of franchise stores open between 2014 and 2018 is known only from press counts.

General knowledge: Sling TV is a streaming service owned by Dish Network. The Last Blockbuster was first released in 2020. Chapter 11 is the reorganisation chapter of the U.S. Bankruptcy Code and Chapter 7 the liquidation chapter.

Images: Screenshots are of Internet Archive captures.33 Photographs are from Wikimedia Commons under the licenses given in the gallery credits. Drawings are original illustrations, not official assets.

More post-mortems

Quibi

2018 – 2020

Dead
Strategy and management
198 days from launch to wind-down

Hollywood Video

1988 – 2010

Ghost
Debt and buyouts
$1.25B merger value in April 2005; liquidation was approved five years later

Redbox

2002 – 2024

Dead
Technology shift
24,000 kiosks switched off in July 2024, of 44,000 at the end of 2013

Browse all 35