Blockbuster, once a dominant force in the video rental industry, saw its downfall due to a combination of technological advancements, poor strategic decisions, and an inability to adapt to changing consumer preferences. The rise of digital streaming services like Netflix, which offered more convenience and flexibility, played a critical role in Blockbuster's decline. Additionally, Blockbuster failed to embrace the shift towards online rentals and streaming, opting instead to focus on its traditional brick-and-mortar stores.