“The company was founded in 1985 in Dallas, Texas, and it was worth billions of dollars at its peak, employing dozens of thousands of people. It was so popular across the US that, in 1989, a new store was opening every 17 hours. The rapid rise of digital services such as Netflix, which launched in 1999, and online retailers, like Amazon, made Blockbuster’s video and DVD business model practically obsolete.”
In my neighborhood, as in neighborhoods around America, there is an old Blockbuster building that is used to sell fireworks before the 4th of July and Halloween paraphernalia in October. Most of the year however the property is a vacant lot where you might find police officers filling out their paperwork in the parking lot. If video killed the radio star, Netflix killed the Blockbuster store. Creative destruction leaves littered industries that, because of technological innovations, are no longer viable (if you want a deep dive into the demise of Blockbuster that goes beyond the obvious rise of streaming technology, this article by Retail Dive is solid).
In addition to technological changes, some product shifts hint at societal and demographic changes (see this witty article about the demise of mayo).
GeoEd TAGS: globalization, industry, economic.
Scoop.it Tags: globalization, industry, economic.
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