In 1980, while waiting for the result of the home video format war (ask your parents), I became one of the first kids on my block to own a VHS videocassette recorder/player. I guessed right; though VHS was technologically inferior to Betamax, its cassettes held more stuff, and that was enough for me and the non-Sony world. This machine changed my life – and, as it turned out, the entire culture’s. Not only could I record ordinary tv programs to watch later (the eggheads instantly gave that phenomenon a fancy name: “time shifting”), but they also included, if I so chose, uncut and uninterrupted movies off HBO, or classic flicks that aired at 3 in the morning: I could set the thing like an alarm clock! How useful this would have been while I was struggling through my Master’s thesis on Fifties monster movies. They’ve gone about as fer as they kin go, said I.
As with television a generation prior, Hollywood had no vision of the future and its knee-jerk reaction was to fight home video tooth and nail. In 1976, Universal and Disney brought suit against poor Sony, alleging that home video recording amounted to piracy; by the time the matter finally reached the Supreme Court eight years later and time-shifting off the air was judged to be fair use, the practice had grown so widespread that the legal action was basically moot, now enriching only lawyers.
In the meantime, of course, the studios were taking big chomps of the new home video pie themselves. They began to issue official, “studio-struck” versions of their most popular movies. Fox Home Video was a pioneer: I remember being astonished to see PLANET OF THE APES, PATTON and M*A*S*H shown at people’s homes during parties (the serious film and tv production guys all had Betamaxes early on). At one such bash at my friend Dave Adcock’s, 2001 played with the sound off, and you could see people taking quick glances over your shoulder. Far from ruining the movie business, home video revenue came to carry the biz on its back – you made more money on home entertainment than on the theatrical release – and continued to do so until very recently.
Renting videocassettes, in both Beta and VHS formats, was the next logical step – after all, most adults only want to see a movie once – and it sprang up in thousands of mom-and-pop stores, located in strip malls and lesser venues, DIY-shabby but cute, like independent comics stores. Mine was called Video Station, owned by a wonderful movie fan named Curtis. The first time I walked in, I was gobsmacked at the choices I had, for movies I could see tonight. I simply must share this with others, I said.
So, every Friday night for several years, I screened a movie at my house. Ten or fifteen friends came over to watch – the audience was constantly changing and self-regenerating – and we loved having our own private movie theater. After the first few weeks, one of my neighbors timidly came to the door and said, “Sorry, but we’ve just got to know what you do on Friday nights. All these cars pull up in your driveway and on the street. Then you turn off all the lights, and we don’t hear a peep for two hours!” (Remember, VCRs weren’t very common back then. Once I explained that we were all watching a movie, it suddenly made sense.)
I was such a reliable customer that Curtis would give me a peek at release schedules and let me have pre-dibs on new movies, which were appearing on tape even before their pay-cable runs. One Friday his delivery ran late and he personally drove the cassette over to my house just as people were beginning to arrive for the movie. (He declined a beer, but accepted our warm applause.) This was the state of home video rental in the early Eighties: warm, personal service, hand-selling (Curtis recommended most of the lesser-known films we screened, just as Quentin Tarantino did at his video store out in California), the same qualities you want in a good independent bookseller. Video life was sweet.
Then, in 1985, a Dallas businessman named David Cook decided to take the concept wide. Mom-and-pop video stores were starting to add locations and develop into local and regional “chains,” but Cook’s eyes were bigger, and Blockbuster was born. Wayne Huizenga executed its national rollout: it quickly added videogames, swallowed up smaller companies and opened new stores aggressively, aided by a virtuous circle in which floods of new customers were entering the movie-rental market every week. Less than ten years after its founding, the now-ubiquitous Blockbuster was big enough to seriously propose a merger with Viacom.
Now all the homegrown Video Stations were out of business, and everybody was dealing with Blockbuster (there were 9,000 stores at its peak in 2004) or a franchise just like it. Oligopoly bred complacency as video rental became a typical weekend’s afterthought. Blockbuster customers were treated to a shelf full of thirty display cases of that weekend’s new release, all of them already rented. There was little quality control over returned rentals; you wondered exactly what some people had been doing with them. And then there were the late fees. You couldn’t ignore them like some did with their library, because Blockbuster had your credit card. Grumbling about Blockbuster became a national pastime (especially when it appeared that late fees constituted a profit center), but its business model was already mortally wounded.
Those late fees inspired a Blockbuster customer named Reed Hastings to think of a new business model, and what he came up with was Netflix, which opened in 1997, concentrating on the new DVD format. There was no store; you ordered your movies via the Internet and got them through the mail. And – here’s the master stroke – you paid a monthly fee to have a certain number of disks at your house for as long as you wanted. The company got a reliable stream of revenue without having to charge late fees! Netflix subsisted on mail-order while it quietly broadened its “streaming” capability, and lately has even moved into original programming, the very thing which has kept HBO afloat all these years. Fun fact: Netflix offered itself to Blockbuster in 2000 for $50 million, and was turned down.
So why do you need Blockbuster anymore? Hmmm: you don’t. Yesterday the company’s current owners announced that it will close its remaining 300 company-owned stores by early January. That will leave only about fifty franchisee-run stores, and they’d better watch their backs, because the brand name’s “goodwill” has long since been used up. Entertainment is still big business, but the way it’s delivered to our eyeballs is constantly mutating and adapting to fit new technology. Blockbuster controlled the golden goose for about 25 years, but these days it’s about as relevant as a Commodore 64 – and I know plenty of former customers who are just fine with that.
11/9/13: Variety reports, “Blockbuster has sent out tweets over the last several days alerting customers it will stop renting movies on Nov. 9, with most stores starting to liquidate inventory on Nov. 14.” (Note to Rand Paul: this is how you quote somebody without plagiarizing them.)
11/11/13: The funnest fact of all: Variety reports that the last movie rented from a company-owned Blockbuster store was THIS IS THE END. (First half: amusing. Last half: embarrassing. Kind of like Blockbuster itself!)