Hollywood Video, once Blockbuster's main rival, went out of business after its parent company, Movie Gallery, filed for bankruptcy in 2010, with all stores liquidating by mid-2010 due to the rise of streaming and online rentals like Netflix, marking the end of a major brick-and-mortar video rental era.

Key Points of its Discontinuation:

Parent Company Failure: In February 2010, Movie Gallery Inc., which owned Hollywood Video, filed for Chapter 11 bankruptcy.

Mass Closures: This led to the liquidation and closure of all remaining 1,900+ stores, with the last ones shutting down by July 31, 2010.

Industry Shift: The primary reason for its demise was the inability to compete with digital services like Netflix (streaming/mail-order) and Redbox kiosks, shifting customer habits away from physical stores.

Operational Struggles: The merged entity faced debt, declining foot traffic, and inefficiencies, failing to adapt to the digital revolution.

Legacy: After the physical stores closed, the website, hollywoodvideo.com, briefly relaunched as a movie news blog, but the iconic brand disappeared from retail.