In 1985 on this day, the very first Blockbuster video-rental store opens in Dallas, Texas.
During a period when most video stores were small and offered a limited range of titles, Blockbuster debuted with around 8,000 tapes arranged on shelves throughout the store along with a computerized check-out system. The initial store proved successful, prompting rapid expansion that led Blockbuster to become one of the largest providers of home movie and gaming entertainment worldwide.
David Cook, the founder of Blockbuster, previously held ownership of a business offering computer software services to the oil and gas sectors in Texas. Recognizing the potential in the video rental industry, Cook established the first Blockbuster in 1985 and opened three additional stores the next year.
In 1987, he sold a portion of the business to investors, including Wayne Huizenga, the founder of Waste Management, Inc., which is the largest garbage disposal company globally. That same year, Cook exited Blockbuster, and Huizenga took over the organization, relocating its headquarters to Fort Lauderdale, Florida. Under Huizenga’s guidance, Blockbuster initiated an aggressive expansion strategy, acquiring existing video store chains while also opening numerous new locations. By 1988, Blockbuster emerged as America’s top video chain, boasting approximately 400 stores. The early 1990s saw Blockbuster reaching its 1,000th store and moving into international markets.
In 1994, the media giant Viacom Inc., known for brands like MTV and Nickelodeon, purchased Blockbuster. With the inception of the digital video disc (DVD) in the mid-1990s, Netflix, an online DVD rental service, emerged in 1997.
Simultaneously, Amazon.com, the e-commerce leader, introduced a video and DVD store. Blockbuster found itself facing increased competition from the emergence of pay-per-view and on-demand movie services, allowing viewers to pay for and instantly enjoy movies at home. In 2004, Blockbuster separated from Viacom, and that same year, it began its own online DVD rental service to rival Netflix.
By 2008, Blockbuster operated around 8,000 stores globally and had gained recognition for its advertising initiatives, including the iconic slogan “Make it a Blockbuster Night.” In 2006, after relocating its headquarters back to Dallas, the company reported global revenues exceeding $5.5 billion.
