On a brisk winter morning in 2004, the small city of Stanley, Idaho, with a population of 101 and a temperature of negative 17 degrees, witnessed an intriguing exchange. An individual, persuaded to move from London, England, by their boyfriend, was handed a bright red envelope and requested to drop it in the mailbox. The envelope bore the name Netflix. Mystified by the name, the individual discovered from their boyfriend that Netflix was a service offering DVDs by mail, allowing movies to be sent, watched, and returned without penalties—a concept that was groundbreaking at the time.
While Netflix had been gaining momentum in the United States since its inception in 1998, it would take another eight years to reach the UK. In 2004, movie nights for most still involved a trip to the video store. Reflecting on childhood experiences in the ’90s, the individual recalled spending countless hours at local video stores searching for VHS tapes to watch, often grappling with late fees that strained their budget. The notion of holding onto a movie with no penalties seemed revolutionary, hinting at a bigger change on the horizon.
By 2024, content could be accessed on various digital devices with almost no effort, a stark contrast to the labor-intensive process of the pre-streaming era, which included frequent trips to the video store and managing VCR recordings. The shift from physical to digital media had liberated film enthusiasts, offering instant access to vast collections of entertainment. Yet, a sense of nostalgia lingered for the effortful but satisfying rewards of past methods.
The rise of the internet and streaming video significantly altered viewing habits and content preferences. The decline of video stores, however, can be traced back to 2004, not specifically with streaming but with the introduction of Blockbuster’s mail-order DVD service, Blockbuster Online.
At its peak, Blockbuster was as iconic as Netflix is today. Dominating the market in the 1990s and 2000s, Blockbuster eclipsed small video stores by securing favorable arrangements with movie studios. However, Netflix, initially a struggling startup, was dismissed by Blockbuster executives during acquisition talks. By 2004, Blockbuster faced mounting competition from Netflix, which boasted a million subscribers, prompting them to create Blockbuster Online and eliminate late fees. These decisions, costing the company $400 million, led to a significant decline in market value and eventual bankruptcy.
Former Blockbuster CEO John Antioco attributed the company’s collapse to internal issues rather than competition from Netflix, suggesting that with a different strategy, Blockbuster might have thrived alongside it. However, investor discontent led to a pivotal change in course, sealing Blockbuster’s fate.
Speculation abounds about a potential alternate reality where Blockbuster adapted successfully to the digital age. Blockbuster’s downfall allowed new and existing companies to fill the void, accelerating the transition from physical media to digital streaming. Netflix launched streaming in 2007, followed by Hulu and Amazon’s video services soon after, reshaping the entertainment landscape.
Even as physical media persisted, services shifted from brick-and-mortar stores to mail-based models, like the Disney Movie Club, which catered to families with DVDs featuring exclusive bonuses. As digital streaming became the norm, Disney eventually discontinued its movie club, signaling the end of physical media’s dominance.
Despite the digital evolution, there remains a sentiment that a more balanced approach might have preserved the tangible experience of video stores into the 2020s. While the convenience of streaming is unmatched, there is a distinct cultural void left by the disappearance of video store browsing. The personal touch and discovery that came with physical aisles are missed in today’s digital scape, a difference noted with the repurposing of a local Blockbuster into a wine bar.
