The Blockbuster Story and Misconceptions

Contrary to popular belief, Blockbuster's downfall was not due to a failure to keep up with technology. In fact, Blockbuster partnered with Enron in the early 2000s to develop streaming video capabilities. While Netflix did offer themselves to Blockbuster in 2000, this was before streaming became mainstream. Blockbuster was well-positioned with their own streaming video company and had doubled earnings before the 2008 financial crisis. However, the collapse of Lehman Brothers and the subsequent banking industry turmoil made it impossible for Blockbuster to refinance their debt, leading to the company's restructuring and eventual sale to Dish Networks.