It was not that widely reported, but on Wednesday, Blockbuster went into administration. This will come of little surprise to anyone. Whilst Blockbuster launched in the UK in 1989 and successfully dominated the video rental market, wiping out most of its competition, the tables have turned against them in an overcrowded market. The purchase price of DVDs has not helped those renting them – the difference between the cost of ownership and the cost of rental being very marginal.
Blockbuster has around 500 stores across Britain employing around 4,000 staff, which is a statistic that tells another story as well – an average of 8 staff per shelf-stacking store cannot be a sustainable business. The internet offers huge opportunity to those that know how to build businesses and more importantly, not forget what the purpose really is. I have to admit that I am not going to miss Blockbuster and have not set foot in one for many years, there is a sense of reaping as you sow about this one. As you may have gathered, I am rather more enthused by unique, bespoke, individual and independent businesses providing a great service. Deloitte has taken over the running of the business until a buyer can be found, though I cannot imagine why anyone would want the business as it is.