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15 Fast-Forward Facts About Blockbuster Video

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It wasn’t too long ago that Blockbuster Video was on top of the home video world. More than 9000 stores dotted the U.S. in 2004, each offering some 6000 square feet of DVDs, VHS tapes, video games, and candy bars. But the arrival of Netflix and entertainment-on-demand stripped the company to the bone and necessitated bankruptcy: As of January 2014, just 51 Blockbuster franchises were left. If you’re feeling nostalgic for a time when it required transportation and human interaction to watch a movie, check out these 15 facts about the rise and fall of America’s onetime video king.

1. THE FIRST STORE OPENED BECAUSE OF FALLING OIL PRICES.

Dallas, Texas entrepreneur David Cook was still smarting from a collapsed oil market in 1985 when his wife, Sandy, broached the idea of opening up a video store. Cook had been writing computer programs to manage inventory for big oil businesses, but a market collapse led to a stack of unpaid invoices. At the same time, the VHS rental market was exploding, growing from 7000 stores in 1983 to 19,000 in 1986. The Cooks decided the industry could use a mega-store with an inventory larger than independent shops could provide. Sandy came up with the familiar blue-and-yellow color scheme, and Blockbuster was born.

2. THEY WERE THE FIRST TO KEEP TAPES ON SHELVES.

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Rental stores of the 1980s had a problem: Patrons who enjoyed movies but didn’t enjoy paying for them had a habit of relieving owners of their inventory. To discourage theft, an empty VHS box would sit on the shelf and an exchange would be made at the counter. But because Blockbuster’s inventory was so vast—the Cooks began with 8000 to 10,000 titles—it would be impossible to have a back room for the movies. The tapes stayed on shelves, allowing customers to see what was in stock. The system allowed for quicker customer turnover and an efficient inventory system that could allow them to populate an entire store with stock in a single day. By 1988, the franchise had more than 400 locations.

3. THEY ABSTAINED FROM PORN.

Unlike many mom-and-pop shops that had a neon sign and a set of swinging doors that led to an adult selection of titles, the Cooks decided early on that Blockbuster would be a genital-free zone. It wasn’t a moral issue for them: “We don’t care if people watch pornography,” Cook told Business Week. “We just don’t want to sell it to you. A lot of families came to our store only—not because of the selection and not because of the long hours and not because of the convenient check-out and the three-day rentals—they came because they didn't mind their kids running around the store because they wouldn't see any garbage.”

4. THEY WERE SUED BY NINTENDO.

It was inevitable that Blockbuster and other video chains would capitalize on the resurgence of video games in the 1980s by renting out popular titles. Mario and Link, however, were not willing to cooperate: Sticking to its reputation for stern business, Nintendo sued the company in 1989 for copyright infringement, complaining that stores were photocopying game manuals. (Blockbuster said they were simply compensating for the worn-out originals.) The two wound up settling out of court. By 1994, Nintendo had capitulated on its anti-rental stance, and Blockbuster reported that game rentals made up 8 to 10 percent of their revenue.

5. THEY MADE A FORTUNE ON LATE FEES.

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It’s difficult to lose money gambling on the over-booked, overworked American consumer, and Blockbuster was no exception. The company profited enormously from late fees, which accrued after the one- or three-day rental term had expired. In 2000, $800 million, or 16 percent of total revenue, came from fines. After the company revamped its policies in 2004 to trumpet “no more late fees,” New Jersey state attorney generals cried foul: While that may have been technically correct, a movie or game more than eight days late meant the customer was charged the full purchase price. Though Blockbuster's policy was to reverse the charges within 30 days if the customer returned the item, they were still charged a restocking fee.

6. THEY TRIED BECOMING A MINI-AMUSEMENT PARK.

Though he eventually turned the company over to other investors, Cook anticipated the idea that Blockbuster could become more than just a rental outfit when he named the company Blockbuster Entertainment in 1985. In 1994, executives tried to make good on the label by opening a center dubbed the Blockbuster Block Party in Albuquerque, New Mexico. Spread over 60,000 square feet, the “adult amusement park” featured laser tag, mazes, and motion simulator rides. The press referred to it as a “miniature Disneyland on steroids,” but the concept never caught on.

7. ITS MUSIC STORES BANNED MALE EMPLOYEES FROM HAVING LONG HAIR.

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Starting in 1994, male employees working for the Blockbuster Music spin-off stores were told that long hair and earrings were banned. (According to Billboard magazine, their hair could be "no more than 2 inches past their collars.") A number of workers who refused to comply and were terminated wound up suing; the case was lost on appeal in 1998.

8. THEY GOT EXCLUSIVE RIGHTS TO SOME MOVIES.

In the 1990s, some titles, like Lolita (1997), were exclusive to the chain, leaving smaller shops unable to secure them for their own inventory and prompting some to buy from wholesalers who ignored the exclusivity rules.

9. THEY ADVERTISED ON DRY CLEANING HANGERS.

Sensing a missed opportunity to capture the attention of dry-cleaning customers, Blockbuster and several other businesses placed advertisements on bags and clothes hangers in 1998. Coupons were also stapled to the supplies.

10. THEY TURNED DOWN NETFLIX ...

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Netflix was just beginning its ascension into a DVD-by-mail and streaming giant when CEO Reed Hastings met with Blockbuster in 2000 to pitch the possibility of his company handling Blockbuster’s online efforts. At the time, Blockbuster couldn’t conceive of how Hastings could add any value to their enormously successful enterprise; according to Forbes, Hastings was “laughed out of the room.”

11. … AND LATER MAILED THEM A KITCHEN SINK.

After feeling the pressure from both Netflix and Redbox rental kiosks, Blockbuster developed its own mail rental service in 2004. According to Fast Company, when Hastings told listeners on a conference call that the company had “thrown everything but the kitchen sink” at Netflix in an attempt to be competitive, he received a kitchen sink in the mail from Blockbuster the following day.

12. THEY TRIED TO BUY CIRCUIT CITY.

With Circuit City ailing, Blockbuster tried to arrange a buyout worth $1 billion in 2008—but the electronics franchise went bankrupt the following year. Blockbuster wound up losing a billion all by itself in 2010, forcing it into bankruptcy.

13. THEIR VACANT STORES WERE IN HIGH DEMAND.

Consumerist Via Flickr // CC BY 2.0

When Blockbuster began to vacate their locations, there was some small consolation: the storefronts were in high demand by strip mall occupants. A pawn shop franchise bought several locations in Florida and Puerto Rico; cell phone stores took up other locations. Business owners attributed their appeal to being in prime foot-traffic spots.

14. YOU CAN STILL VISIT BLOCKBUSTER ... IN ALASKA.

The dissolution of Blockbuster’s stores has left only a small number of the familiar torn-ticket awnings still operating: the owners that license the Blockbuster name for its brand recognition. Found mainly in rural areas, the company also has a footprint in Alaska, where several stores see a steady stream of traffic coming in during the weekends. New movies can be rented for $5, while catalog titles are as low as 49 cents a day. The most popular titles, though, are DVDs of premium cable shows: broadband service is expensive in Alaska, and binging doesn’t come cheaply.

15. SOMEONE NOTICED THE TITLE OF THE LAST MOVIE RENTED THERE.

Aside from the independently-owned, in-name-only stores, the last official Blockbuster Video location closed in November 2013. The last title rented? Seth Rogen’s 2013 apocalyptic comedy This Is the End. The company posted a photo of the moment on its Twitter page. And yes, the customer still had to return it.

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The Popcorn Company That's Creating Jobs for Adults With Autism
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iStock

A New Jersey-based gourmet popcorn company is dedicating its profits to creating new employment “popportunities” for adults on the autism spectrum, A Plus reports.

Popcorn for the People, founded by Rutgers University professor Dr. Barbie Zimmerman-Bier and her husband, radiologist Dr. Steven Bier, is a nonprofit subsidiary of the couple's charitable organization Let’s Work For Good, which focuses on "creating meaningful and lasting employment for adults with autism and developmental disabilities." Recognizing the lack of skilled employment options for adults with developmental disabilities, the Biers decided to create jobs themselves through this popcorn venture, with all of the profits going to their charitable organization. According to the site, every tin of popcorn purchased "provides at least an hour of meaningful employment" to adults with autism and other developmental disabilities, who perform jobs like making popcorn, labeling products, and marketing.

The couple developed the idea for the business and the nonprofit in 2015 when their son, Sam, grew tired of his job at a grocery store. Sam, 27, is on the autism spectrum, and after six years of working as a “cart guy,” he decided he was ready to try something new. Employment opportunities were scarce, though. Jobs that provided enough resources for someone on the spectrum tended to consist of menial work, and more skilled positions involved a tough interview process.

“Some companies mean well, but they are limited in what they can offer,” Steven Bier told TAP Into East Brunswick in 2015.

Unemployment rates are especially high among adults with autism. Last year, Drexel University reported that only 14 percent of autistic adults who use state-funded disability services are employed in paid work positions. And while high-functioning autistic adults are often perfectly capable of working in technical careers, the actual process of getting hired can be challenging. People with autism tend to struggle with understanding nuance and social conventions, which makes the interviewing process particularly difficult.

Enter the Biers' popcorn business. What began in 2015 as the Pop-In Cafe (which still sells popcorn and deli items at its New Jersey location) now distributes flavored popcorn all over the world. In three years, the organization has gone from a staff of four, with one employee on the autism spectrum, to a staff of 50, nearly half of whom are on the spectrum. In July, the organization plans to expand to a larger production facility in order to keep up with demand.

The company provides an environment for employees to learn both hard skills, like food preparation and money management, and what the company describes as “watercooler life skills.”

"There just aren't many programs that teach these sorts of things in a real-world environment, with all that entails," Bier told My Central Jersey. "These are skills that the kids can use here, and elsewhere."

According to A Plus, you can now buy Popcorn for the People in person at locations like the Red Bull Arena in New Jersey and the Lyric Theatre in Times Square. The organization sells 12 flavors of popcorn (including cookies and cream, Buffalo wing, and French toast), all created by Agnes Cushing-Ruby, a chef who donates 40 hours a week to the company.

“I never thought that the little pop-up shop would grow into this,” Sam told A Plus. “It makes me so happy to see we have helped so many people.”

[h/t A Plus]

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IHOb Restaurants
10 Strange Publicity Stunts by Major Food Brands
IHOb Restaurants
IHOb Restaurants

Celebrities have always loved doing crazy things for press—but these days, even corporations will go to extreme lengths to get the word out about their products. Case in point: IHOP's recent attempt to create a little mystery, and sell some burgers, as IHOb. Below you’ll find 10 of the weirdest stunts done to promote mass-produced food items.

1. COLONEL SANDERS RAPPELS DOWN A HIGH-RISE

It’s hard to imagine KFC’s elderly Colonel Sanders doing much outside of eating and talking about his “finger lickin’ good” fried chicken. But in 2011, a man dressed as the Colonel strapped on a harness and rappelled down Chicago’s River Bend building. The Colonel didn't stop at rappelling down the 40-story building; he also handed out $5 everyday meals to window washers. What was KFC’s concept behind this dangerous promotion? They wanted to show the world they were taking lunch to “new heights.”

2. THE WORLD'S LARGEST POPSICLE

Sometimes being the biggest doesn’t mean you’re the best. In 2005, Snapple wanted to make the world’s largest Popsicle to promote their new line of frozen treats. Their plan was to display a 25-foot-tall, 17.5-ton treat of frozen Snapple juice in New York City’s Union Square. However, their plan ended in a sticky disaster. The day Snapple tried to present the Popsicle, New York was experiencing warmer than expected temperatures. The pop melted so quickly that a river of sticky sludge took over several streets. In a city already congested by traffic and tourists, this made Snapple enemy No. 1 that day to the people of New York City.

3. COFFEE CUPS ON CAR ROOFS = FREE COUPONS

A cup of Starbucks coffee
Wikimedia Commons

Starbucks believes in rewarding those who embrace the holiday spirit. In 2005, the Seattle-based coffee giant developed a campaign by which brand ambassadors drove around with replicas of Vente Starbucks cups affixed to their car roofs. If anyone stopped the ambassador to warn them about the coffee cup on their roof, that person received a $5 gift card to Starbucks. Starbucks wanted the world to know being a good samaritan really can pay!

4. MESSAGE IN A BOTTLE

Imagine walking the beach and finding a sealed bottle of Guinness. But instead of finding beer inside, you find a note from King Neptune, the Roman god of the sea. In 1959, that happened to people along North America’s Atlantic coast. Guinness wanted to build brand awareness in the area, so they dropped 150,000 sealed Guinness bottles into the ocean. The bottle contained Neptune’s scroll announcing the House of Guinness’s Bi-Centenary as well as a document instructing the reader on how to make a Guinness bottle into a table lamp. While no one got a free beer (boo!), they did walk away with an arts and crafts project.

5. EAU DE FLAME-BROILED

Who can resist the smell of flame-broiled burgers? The answer is most people—at least when it comes in the form of a body spray. Burger King’s 2008 campaign promoting the “scent of seduction” may be one of the weirdest ideas on this list. The fast-food company thought they could capture the world’s attention by creating and advertising a meat-scented cologne called FLAME by BK. Though select New York City stores actually sold the scent, all of this was a tongue-in-cheek campaign to make the 18- to 35-year-old male demographic laugh.

6. HERE COMES THE SUN

London commuters experienced an unexpectedly bright morning during January 2012. Tropicana worked with the art collective Greyworld to create a fake sun promoting their “Brighter Morning” campaign. The "sun," made up of more than 60,000 light bulbs, rose over Trafalgar Square at 6:51 a.m. on a particularly chilly morning. The sun set at 7:33 p.m. Tropicana continued to promote their sun day, fun day by having Londoners sit under the sun with branded sunglasses, deck chairs, and blankets. 

7. AIRPORT STEAK DELIVERY

Some of the craziest publicity stunts can’t be planned. We live in a world of 24/7 social media, and when the Twitterverse gave Morton’s Steakhouse an opportunity, they seized upon it. Before flying from Tampa to Newark, Peter Shankman, an entrepreneur and author, jokingly tweeted at Morton's Steakhouse that he wanted a porterhouse steak to be waiting for him when he landed. As Shankman was a frequent diner and social media influencer, Morton's Steakhouse saw the opportunity to start a conversation—and they went for it: When Shankman touched down in Newark, he was greeted by his car service driver and a Morton’s deliveryman. If only all travelers could experience that happiness in an airport.

8. BUYING THE LIBERTY BELL

April Fools Day gags can be great for brands … or an embarrassment. In 1996, Taco Bell took out an ad in The New York Times saying they bought Philadelphia's Liberty Bell. The ad also informed people of the bell’s new name: "Taco Liberty Bell." Back in the mid-1990s, people couldn’t go on Twitter or Facebook to find out the truth. Instead, they wrote the publication voicing their outrage. The hoax may have worked in getting press coverage (650 print publications and 400 broadcast media outlets publicized the joke), but what does that say about your brand when people actually believe you would rename a historic monument for your own gain?

9. CREATING THE LARGEST MAN-MADE FIRE


Wikimedia Commons

In 2011, the Costa-Mesa based chain El Pollo Loco sent out press releases saying they planned to create the world’s largest man-made fire. Why would they create a fire? El Pollo Loco needed to get the word out about their new flame-grilled chicken. Spectators attending the event were shocked to see that this stunt was actually a commercial shoot for the brand. The chain says they really did attempt to break the record. But many publications have stated the whole promotion was a fraud. Note to brands: When trying to pull off a publicity stunt and a commercial simultaneously, tell everyone your plan in advance.

10. KFC IN SPACE

KFC may just be the king of wild publicity stunts. In 2006, the company created an 87,500-square-foot logo at Area 51 in Rachel, Nevada. The company wanted to be the first brand visible from space. And it was no coincidence they picked a spot near “The World’s Only Extraterrestrial Highway.”

“If there are extraterrestrials in outer space, KFC wants to become their restaurant of choice,” said Gregg Dedrick, former president of KFC Corp. The world is not enough for KFC. They need the entire universe hooked on their Original Recipe.

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