You'll Never Guess Where Blockbuster Is Thriving

Blockbuster may have met its demise in America, but that's not true just south of the border.

learn more about Geoff Weiss

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

In America, the Blockbuster video chain conjures images of boarded-up storefronts, vacant shelves and desolated aisles. Just south of the border in Mexico, however, the company is alive and thriving.

After shuttering the last U.S. Blockbuster stores in November, the chain's parent company Dish Network sold 320 Mexican locations (and 1.6 million members) to Grupo Elektra earlier this month for $31 million.

In Mexico, the Blockbuster name still resounds, and online services like Netflix and iTunes have not yet made rentals an antiquated proposition.

Related: The Fall of a Franchise: Blockbuster and 5 Other Chains That Went Bust

"The Blockbuster name has more panache in Mexico and many of the stores are located in well-heeled neighborhoods," Juan Elizalde, a financial analyst, told Bloomberg.

Also, Redbox does not exist in Mexico, and only 31 percent of households are connected to the internet. Blockbuster does face stiff competition from bootleggers, however, who are responsible for the sale of 90% of DVDs in the country, according to Mexico's Business Coordinating Council.

But Elektra, a financial and retail corporation, has bigger plans for Blockbuster beyond just rentals -- including as a springboard into selling electronics and financial services like online banking, according to the report.

Related: Vimeo Wants to License and Fund Your Movie

Mexican Blockbusters also currently vend DVD players, stuffed toys, spicy tamarind candy and even offer to pick up rented moves at consumers' homes for a mere 10 pesos (75 cents). The company also operates two branded movie theaters, Blockbuster Cinema.

Following the acquisition, Blockbuster Mexico CEO Edward Arguelles will continue to helm the company, and its roughly 2,600 employees will remain onboard.

At its peak in America, Blockbuster operated roughly 9,000 locations circa 2004 when it was spun off by Viacom. Prior to closing its last American locations, Dish also divested Blockbuster's remaining international assets, including stores in the U.K. and Scandinavia.

Related: Netflix Could Rally Its 34 Million Members to Uphold Net Neutrality

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game
Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Culture

Remote Work Doesn't Have To Suffocate Your Company Culture. Here's How to Foster a Stellar Digital Culture

How do you encourage creativity and out-of-the-box thinking digitally? By fostering a dynamic and supportive company culture.

Legal

How to Negotiate a Commercial Agreement Like a Pro

No matter the industry, negotiating is crucial to finding the fairest deal possible.