My family dropped Blockbuster years ago. Basically, their system had showed a video that we had to return, but we never once rented it. They were rather hard on us with it, claiming the system was perfect. As such, we left them and dropped our membership with them.
Since then, we've done renting with Hollywood Video.
That's the thing, Hollywood Video landed when Blockbuster started with their system and Blockbuster's system made mistakes they weren't willing to fix, losing customer trust. Since then, they've been trying to make great deals to get more customers. However, as I have seen it, such a thing has been hurting them more than helping them. They may have great deals, but they're too good for a business.
The truth is, Blockbuster did themselves in before Netflix hit it big. I'm not surprised they are losing stores right now. In all honesty, them being dishonest and making bad choices in what could get them more money is what really did them in. Netflix only made it worse for them.
