Although the national chain declared bankruptcy in 2010, a single Blockbuster Video store remains in Bend, Oregon.

Contrary to popular belief, Netflix didn't kill Blockbuster, though it did intentionally position itself as an alternative to the movie-rental store.

How Netflix battled Blockbuster

The most consequential business stories involve intense rivalries. The story of Netflix versus Blockbuster is one of those: an agile upstart versus an entrenched incumbent. This nine-part podcast explores the key strategies and pivotal moments in the rivalry that upended the entertainment business, setting the stage for the streaming wars.

Netflix, explained

From offering an internet-based, mail-order Blockbuster alternative to its eventual status as a market leader in streaming entertainment, Netflix has led nearly every major paradigm shift in the television and movie business since its inception.

Inside one of the last Sears stores in the US

Sears was once one of the most successful businesses in the US. Today, there aren’t many Sears stores left in the nation, and the ones that are still around feel more like ghost towns than meccas of retail history.

Netflix positioned itself as a logical alternative to movie rentals

At its inception, Netflix disrupted the entertainment industry, in particular the movie rental business, by mass mailing DVDs to customers who made selections online. That brand is evident in this 2004 commercial.

Red Lobster lost $11M on endless shrimp promotions—but its real estate holdings were what dragged it to bankruptcy

Golden Gate Capital, a PE firm, bought Red Lobster in 2014 for $2.1B. Golden Gate then sold Red Lobster's real estate, more than 500 storefronts, which generated $1.5B in revenue and helped finance the PE firm's acquisition of the company. Analysts say increased debt, high rent costs, and low equity put Red Lobster in an impossible position, leading to its 2024 bankruptcy filing—although the shrimp bill probably didn't help.

Every year, nearly 500,000 bankruptcies are filed in the US.

A 2002 profile of unprofitable Netflix as it bet on a subscription model

The streaming behemoth saw the potential in subscriptions early, and in this 2002 profile CEO Reed Hastings was already talking about plans to offer "downloadable" movies. The profile serves as a historical artifact confirming the startup's risky bets and showcases the contingent factors that led to its success. (Some users may experience a paywall.)

The streamer no longer just offers TV and movies

As a means of keeping existing subscribers engaged, and to add new users on the margins, the streaming service began releasing its own original video games. Many are based on existing Netflix titles and franchises. See their current offerings here.

Netflix is the dominant streaming service

As of 2025, Netflix had amassed more than 300 million subscribers globally and saw quarterly revenue over $11B.

Claire's has filed for bankruptcy multiple times

Between competition from online retailers such as Shein and Temu, and too many physical stores for today's retail climate, Claire's has had a difficult time modernizing.

Netflix started in 1997 as a mail-order DVD rental service

The first Netflix customers selected DVDs from the company’s website and received and returned them through regular mail. The approach included no late fees and quickly added the ability to rent an unlimited number of DVDs for a flat monthly fee, with the company passing 1 million subscribers in 2003.

Letterboxd, the social media app for movie reviews, was named one of Time's 100 most influential companies of 2026.

Hooters filed for bankruptcy in March 2025 after being operated by two very distinct operations

For years before that filing, the restaurant group had been operated by two different companies: one owned by private equity, and the other that includes the original founders.

In communist Poland, the VHS black market provided a window into the US

Although government censors often banned official releases, Polish residents enjoyed a healthy black market of stores and traders, who offered all the latest Hollywood movies.

Independent bookstores are expanding across the country, though studies show literacy rates are rapidly declining, with only 35% of American high school seniors considered proficient readers.

What is Chapter 11 bankruptcy?

While there are multiple types of bankruptcies, Chapter 11 is probably the one you've heard about the most. Technically speaking, Chapter 11 bankruptcy involves a reorganization of a business's assets and debts under court supervision. Companies such as Red Lobster, WeWork, and Party City have all filed for Chapter 11 bankruptcy in recent years. Learn more about it here.

The Oregon Shakespeare Festival is the largest repertory theater in the US

Based in the small hamlet of Ashland, the Oregon Shakespeare Festival produces works both by the Bard and more contemporary writers, attracting thousands to the town's three theaters.

'The Big Lebowski' slowly spawned a cult following—and a religion

When it was released in 1998, the Coen brothers' film didn't garner overwhelming critical praise or generate impressive ticket sales. Over time, though, it's become one of the defining cult movies, with midnight showings where audience members dress as Jeff Bridges' "Dude" and drink White Russians. It's even spawned its own religion: dudeism.

The 1948 Supreme Court ruling was overturned in 2020

In 2020, US District Court Judge Analisa Torres overturned the 1948 Supreme Court ruling that broke up the studio system—effectively allowing the film industry to become vertically integrated once again—with companies like Amazon and Disney taking advantage of the relaxed regulations.

Sears filed for Chapter 11 bankruptcy in 2018

Although the retailer may have failed financially speaking, some argue that longevity in itself is a success—the brand operated for over 130 years before that bankruptcy filing, after all.

'The Shawshank Redemption' flopped in theaters

The Tim Robbins movie, based on Stephen King's short story "The Body," did poorly at the box office when released in 1994. It took off on the video rental market, though, after it was nominated for seven Oscars.

A Portland dive bar helped drive Pabst Blue Ribbon's early 2000s comeback by selling cans for $1 apiece.

Bankruptcy is a legal way to manage overwhelming debt, whether for individuals, corporations, or even local governments

Chapter 7 is for liquidating personal assets to clear debts, Chapter 13 allows a repayment plan for individuals, and Chapter 11 lets businesses reorganize to stay afloat.

Investment banking giant Lehman Brothers filed for bankruptcy in September 2008 when it had $619B in debt, making it the largest bankruptcy ever in the US

Nearly all of its 26,000 employees immediately lost their jobs. But in London, a few hundred remained tucked away, working for another decade to wind down the bank’s European business.

The most common types of bankruptcy filings are Chapter 7, Chapter 11, and Chapter 13

However, there are actually six types in practice today. These less-common options can be lifelines for foreign businesses operating in the US, local governments, and farms and fisheries.

See a timeline of the consolidation of the television and film industry, beginning with Vaudeville theatre traditions from the 1880s.

Content frequently disappears from streaming services due to rights negotiations and tax incentives.

The legend of Pittsburgh’s fake Burger King

Years ago, a Burger King in Pittsburgh lost its franchise due to repeated customer complaints about food quality. However, the franchise-holders continued to operate the restaurant, switching to generic packaging but keeping the signage and uniforms. Customers eventually caught on and raised suspicions, leading to Burger King's corporate leaders' involvement. Learn more about the bizarre establishment and how it managed to continue operations for months.

The company's success is often credited to cofounder Reed Hastings

Hastings advocates management philosophies like radical candor, agility, and a hands-off approach to high-performing employees. He stepped down as CEO in 2023 but remains Netflix's chairman.

Amazon is both a vendor for Netflix, via its cloud-computing arm, and its rival

Amazon's Prime Video is a subscription streaming service that includes a variety of original shows and movies for free with a paid Prime membership. This Rotten Tomatoes ranking details 100 of the best Prime Video shows available to watch, including the dramas “Fleabag” and “The Boys.”

In 1994, Amazon was founded as an online bookseller

Books were just the start, as founder Jeff Bezos' ultimate goal was to create an "everything store," using the internet to transcend the physical limitations of brick-and-mortar retail. The Seattle-based Amazon gradually added CDs and consumer electronics, becoming a dominant e-commerce player in the late 1990s, and one of the few dot-com companies to make it through the bust.

The history of bankruptcy in the US dates back to the signing of the Constitution

In 1787, this founding document gave Congress the right to establish nationwide bankruptcy laws. Legislators took advantage of that power in 1800 when they passed the Bankruptcy Act of 1800, the first comprehensive bankruptcy law at the federal level.

Read about the history of gift cards

The first retailer to sell gift cards was Neiman Marcus, but Blockbuster popularized them by selling them via in-store displays in 1994. Starbucks then started selling gift cards that could be reloaded in 2001.

The Sundance Film Festival is named after a Robert Redford character

Redford purchased a plot of land in Utah in 1969, calling it Sundance Mountain Resort, a nod to his role in the film "Butch Cassidy and the Sundance Kid." Soon after purchasing the land, he began hosting workshops to develop young artists. The Sundance Film Festival (originally called the Utah/US Film Festival) was first held in 1978 and was intended to draw attention to independent cinema.

Budget airline Spirit announced its shutdown on May 2, 2026

After filing for bankruptcy twice, there were a multitude of reasons for the airline's shutdown, including an increase in jet fuel prices due to the conflict in Iran in the first half of 2026.

As of 2024, Macy’s wanted to monetize its store closures through real estate deals

In a 2024 earnings call, Macy’s noted that while it’s remodeling and investing in some of its brick-and-mortar locations, it seeks to shutter other stores in lower-performing locations. It’s estimated that Macy's will close 150 locations through 2026.

The Failure Museum is a curated collection of over 1,000 items representing failed products and companies

Sean Jacobsohn, a tech investor and founder of the Failure Museum, uses items from failed businesses to explain the six primary forces behind their flops, from a Theranos mug to a Blockbuster membership card.

Show business is increasingly leaving Hollywood

Using tax incentives, states like Georgia, New Jersey, and New Mexico are luring studios to produce their films and television shows outside of California. Changing business models after COVID-19 largely influenced this change.

The 2022 best picture winner, 'CODA,' was an Apple+ original

Streaming has changed more than how we watch movies—it's changed the way we recognize them during awards season. When movie theaters shut down during the early days of the pandemic, studios had no choice but to release their films on streaming. Once the shift occurred, there was no going back.

Many shows close without earning a profit

Broadway is a tough market, and a show closing early is relatively common, especially in the winter: Between December 2024 and February 2025, 17 shows closed. It's more than just low ticket sales: Broadway shows face a number of hurdles to success, including stop clauses and bad reviews.

Before it became the home of 24-hour prestige TV, HBO used to sign off each night.

Disney movies pulled in over $5B in 2024

2024 was a banner year for Disney, with the global film studio finding success with "Inside Out 2," "Moana 2," and "Deadpool & Wolverine." While Disney has faced criticism for its reliance on sequels, reboots, and offshoots, the 2024 numbers suggest the public is still eager for its content.

Comedian Nathan Fielder opened a store called 'Dumb Starbucks,' which was protected by US parody law.

In 2025, ByteDance agreed to sell the app's US branch

In 2024, US lawmakers passed a requirement for parent company ByteDance to sell TikTok or face a ban in the country, which the company challenged in court. After several extensions granted by President Trump, ByteDance agreed to sell the company's US branch to a group of US investors, including Oracle, which will oversee the app's security and cloud computing.

Affirm's COO recently said that the company believes the credit card is 'going the way of the VHS tape'

Some people use buy now, pay later apps as an alternative to credit cards. BNPL services have a lower barrier to entry than credit cards—many frequent BNPL users have low credit scores.

The story of Apple Pay Later, a short-lived BNPL service

Apple rolled out its own buy now, pay later service in 2023, but Apple shut it down the following year. Instead, Apple made changes to let its Apple Pay users make purchases and access installment loans through BNPL company Affirm.

How Netflix changed TV

In April 2017, Netflix reached 100 million subscribers worldwide—a figure that hit 300 million by 2025. With 50 million in the US alone, it has revolutionized the way people consume entertainment. Newsweek takes a look into the company's history and how it became the dominant force in entertainment.

Most of Netflix's subscribers are outside the US

Accordingly, each year, Netflix releases an expansive slate of international shows and movies to subscribers worldwide, including hits that crossed over to the US, like "Squid Game."

Visualizing the highest-grossing movie franchises from 1979 to 2019

A few dozen major movie franchises have dominated the box office in recent decades, including "Star Wars," "Harry Potter," "Lord of the Rings," and Marvel. This video shows the change from quarter to quarter in gross revenue for each movie franchise over the decades.