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View Full Version : Rumor has it Blockbuster may be closing down...


Unspeaked
Mar 3, 2009, 08:52 PM
LINK (http://finance.yahoo.com/news/Blockbuster-hires-law-firm-to-apf-14534993.html)

Blockbuster hires law firm to handle refinancing

Michael Liedtke, AP Business Writer

SAN FRANCISCO (AP) -- In the latest sign of retail trouble, Blockbuster Inc. said Tuesday it has brought in an outside law firm to rescue the long-slumping video store chain from a financial bind.

The hiring of corporate restructuring specialists Kirkland & Ellis spurred speculation that Blockbuster is on the verge of becoming the latest merchant to be waylaid by the worst recession since the early 1980s.

But Blockbuster spokesman Karen Raskopf said the Dallas-based company has no plans to seek bankruptcy protection, refuting media reports that quoted unnamed people saying Kirkland & Ellis was exploring a possible bankruptcy filing.

The rebuttal reversed a steep decline in Blockbuster shares. The shares recovered 13 cents to 35 cents in Tuesday's extended electronic trading, after plunging 74 cents to finish the regular session at 22 cents.

I think the spokesman's denial is about the surest sign there is that they're in deep trouble ;)

11800506
Mar 3, 2009, 09:07 PM
Just switched to Netflix and loving it. Blockbuster's days are numbered!

MacNut
Mar 3, 2009, 09:35 PM
Blockbuster never reinvented itself when online movies became popular and Netflix came along. It used to be fun to roam the isles of VHS to find a movie. How many people still go to blockbuster?

Unspeaked
Mar 3, 2009, 09:39 PM
Blockbuster never reinvented itself when online movies became popular and Netflix came along. It used to be fun to roam the isles of VHS to find a movie. How many people still go to blockbuster?

Yeah, it's kind of ironic that one of the big moves they were seriously considering last year to help reinvest themselves was a purchase of Circuit City (back before it was teetering on bankruptcy itself).

Wonder how that would have turned out...?

:rolleyes:

iShater
Mar 3, 2009, 09:41 PM
I haven't been there in ages, Family Video is where I go.

2056
Mar 3, 2009, 09:41 PM
i had two blockbuster locations near me since i was a kid. one closed down last week. what a shame..

Kamera RAWr
Mar 3, 2009, 09:53 PM
I think Blockbuster very well could go under, if they don't "reinvent" themselves. Perhaps many video stores will be going under in the future. Although I suppose thats been predicted quite often of the last year or two.

Personally when I was living in the states, for the last two years I never rented from a video store. I either bought or rented movies from iTunes. As for DVDs, most I know are using netflix. Down here in NZ I'm using the video store ALL the time. I'd use iTunes if my internet wasn't limited to 10GB of data per month. :(

robanga
Mar 3, 2009, 09:59 PM
Bankruptcy does not necessarily mean they will go out of business entirely, they stated today they have enough cash to last year. The could reorganize change their business model, have fewer stores etc. etc. and still be around.

Maybe they should get some servers and offer up download able content, in addition to the stores and movies by mail. Maybe they need a social media site kind of like imdb. Perhaps they need to offer other entertainment products, expand their gaming real estate etc.

Actually here is another idea for them free of charge, Change locations to smaller stores in higher traffic areas instead of only strip malls. Add a refreshments stand similar to one found at various movies, serve a huge menu of movie related junk food from hot dogs, corn dogs, popcorn and raisinettes ( and ice cream etc). Sell all of this at good profit margins but at recession prices. Use the traffic to sell more DVD's and attract people to your online properties.

Unspeaked
Mar 3, 2009, 10:06 PM
Bankruptcy does not necessarily mean they will go out of business entirely, they stated today they have enough cash to last year. The could reorganize change their business model, have fewer stores etc. etc. and still be around.

Maybe they should get some servers and offer up download able content, in addition to the stores and movies by mail. Maybe they need a social media site kind of like imdb. Perhaps they need to offer other entertainment products, expand their gaming real estate etc.

They have $35million in cash. You can win that on some state's scratch-off lottery tickets. I don't think it's going to last them the rest of '09, especially with the economy the way it is.

That being said, even if it did last them, I think it would just be delaying the inevitable. The time of the video rental store has come and gone. And there's not much I can see them reinventing themselves as - most of their natural branch-offs are already being handled by someone else (for example, they just started game rentals, which GameFly has a pretty good hold on).

I also think this is a preview of what's going to happen to Netflix (thanks in no small part to iTunes) if they don't ramp up their online streamable content.

How long before getting a DVD in the mail is just as out-dated as picking up a VHS movie at a video store?

robanga
Mar 3, 2009, 10:12 PM
Call me old fashioned but i refuse to believe all retail is going the way of the dodo. We'll have a world with just amazons and massive walmarts? I believe people still want to go out and physically buy something, and browse a bit.

The downloads vs DVD argument is a good one, but that is going to be a pretty slow phase out IMHO, there is still a massive amount of the populace that has not the interest, patience or skill to download content.

cantthinkofone
Mar 3, 2009, 10:21 PM
I haven't been there in ages, Family Video is where I go.

Same here. The blockbuster here in town are very rude. Family video is freakin' sweet. 2 for 1 rentals, cheap new releases, very friendly staff.

I haven't been in a while because of using netflix.

LeahM
Mar 3, 2009, 10:25 PM
They have been saying this for a while now. I know in Canada they thought they were closing two years ago.

Unspeaked
Mar 3, 2009, 11:00 PM
Call me old fashioned but i refuse to believe all retail is going the way of the dodo. We'll have a world with just amazons and massive walmarts? I believe people still want to go out and physically buy something, and browse a bit.

The downloads vs DVD argument is a good one, but that is going to be a pretty slow phase out IMHO, there is still a massive amount of the populace that has not the interest, patience or skill to download content.

I totally agree with this. There's some things especially that will just never be the same online as they are in person, and a retail market for those will always exist.

Still, I think content delivery is simply not one of those things. As you say yourself, it's just a matter of how quickly (or slowly) it goes away. At some point, that massive amount of populace will dwindle into a small group that just won't have a say any longer.

Sun Baked
Mar 3, 2009, 11:00 PM
I think the spokesman's denial is about the surest sign there is that they're in deep trouble ;)

As long as it IS a debt restructuring specialist, it means they are working to keep the company going.

Unlike Circuit City and CompUSA who brought in bankruptcy liquidation specialists long before they announced liquidation proceedings.

Even if they are a debt restructuring company, it doesn't mean they won't file bankruptcy, since it would likely be a debt restructuring ploy -- just means they won't file for liquidation immediately. Might at least attempt to save the company or sell it first.

yojitani
Mar 3, 2009, 11:11 PM
RedBox has completely taken over here. It's a shame because you can't get older movies from them. Luckily, the libraries around here have several years worth of old movies on their shelves...

Netflix, iPhone, and Twitter... three recent(ish) fads that don't interest me in the slightest...

Abstract
Mar 3, 2009, 11:37 PM
I enjoy browsing the video stores, and don't understand the fun of going to Netflix or anything of the sort.

I think I'll always rent from a store.

the vj
Mar 3, 2009, 11:38 PM
•Do you remember the times when we used to go to a place to rent a movie?

-yes I do! and most of the times the title wasn't available or they had 30 copies of the movie no one wanted to see anymore.

•Yes, you used to spend hours looking for something and nothing.

-yes, and then if you forgot to return the movie you had to pay those late fees.

•Or probably the movie was in bad shape or had something recorded on it at the end.

-yes, yes, what crazy times. Now you can get the movie in better resolution without going out and cheaper.

•yeap! we had our hard time in the past, renting movies, no cell phones, no internet, no nothing... and we were all happy still!:D

erickkoch
Mar 3, 2009, 11:52 PM
Dumped BB for Netflix. I believe it's only a matter of time before BB is finished. It's circling the drain.

hexonxonx
Mar 4, 2009, 01:20 AM
I haven't been there in ages, Family Video is where I go.

I think the last time I was ever in one was around 1998 or so to rent some tapes. Didn't get a DVD player till the next year I think.

That was also the last time I ever rented a movie. I've bought several since but now that iTunes has movies, I just buy them.

alphaod
Mar 4, 2009, 01:22 AM
I went to Blockbuster once, and they charged me a late fee for a movie I returned on time. I told myself they would fall one day…

ravenvii
Mar 4, 2009, 01:55 AM
How long before getting a DVD in the mail is just as out-dated as picking up a VHS movie at a video store?

When they offer subtitles/captions on movies :p

Granted, this is slowly starting to happen with Hulu (bravo Hulu!) and to a lesser (and regressing!) extent, iTunes (boo! You suck!)

CorvusCamenarum
Mar 4, 2009, 06:57 AM
Oddly enough, the local Blockbuster here has just revamped their store and added some 15,000 titles to their library, so said all the signs they had up the last time I was in there. I wouldn't have gone in except my stepbrother gave me a BB gift card for Christmas that I had forgotten about until last week, according to their records I hadn't been in since 2001.

notjustjay
Mar 4, 2009, 11:16 AM
The way I've seen them do business, I figure it's only a matter of time.

All experiences refer to stores in Canada, so YMMV.

First, their prices are completely unrealistic. If Future Shop, Best Buy, Wal-Mart, etc. sell a movie for, say, $23.99, then I expect that's what it will cost (give or take a dollar or two maybe). To therefore see it priced at $29.99 at Blockbuster is just laughable.

So I wouldn't buy new movies from BBV unless I was desperate.

What I do often at BBV is buy previously-viewed DVDs. These are typically priced between $6.99 and $19.99. HOWEVER, I will NOT pay those prices because I know they have frequent sales -- buy 2, get 1 free, or buy 2/3/4 for $20, or buy 5 get 50% off, etc.

So I wouldn't buy used movies from BBV until the right sale comes along, because I know I can pay less. Furthermore, I can't count the number of times the deal was "buy 4 for $20" and I'm standing there with 3 good movies looking for a 4th to complete the deal; finding none, I figure I'll wait another week or two until the selection changes and try again, so I walk out with nothing.

Next, rental prices are out of line. It's $5.99 or more for a new release DVD or Blu-Ray. For that price I can wait a few weeks and buy the movie as previously-viewed (waiting for the right sale, of course). And, since my local BBV offers to buy-back used videos and gives a minimum $5 trade-in credit for them, I can buy the aforementioned 4-for-$20 deal, watch them, trade them in again, and end up paying nothing!

Plus a lot of other shops offer cheaper rentals -- my local "Superstore" grocery chain offers them for $1.99 a night.

So I wouldn't rent from them except in very occasional instances (parties, rented video games).

Ways that I think Blockbuster could do better:
- offer realistic pricing on new DVDs. I'm willing to pay a $1-$2 premium over driving out to Best Buy or Wal-Mart, but not $5-10 more. Yeah, you'll make less per unit but sales volume should go up when people figure you're as competitive as the next guy.
- lower prices on rentals. You're competing with $1.99 rentals in grocery stories and indie shops, as well as as your own trade-in and previously-viewed services. Since video pricing has moved to "sell through pricing" ever since DVDs were introduced (as opposed to the old days where a VHS movie would cost $100 for the first few months of release), you make your money back a lot faster anyway. At $2, I'll rent in the bat of an eye. At $6, I seriously think about waiting to buy the title.
- everyday low prices on previously-viewed movies, or discounts based on per-title (30% off) or at most blocks of 2 (buy 1 get 1 free).
- look into online services like Netflix.

Unspeaked
Mar 4, 2009, 11:36 AM
- look into online services like Netflix.

Does Blockbuster not offer their online rental service in Canada?

Antares
Mar 4, 2009, 12:10 PM
I, for one, think Blockbuster is great. The problem with mail order rental (like Netflix and Blockbuster's mail order) is that it is too slow. Digital download rentals are way too slow, as well. Plus, you can't browse movies online (that you don't know already exist), very easily...be it on Netflix, iTunes, Blockbuster online or whatever other option there is. I've tried Netflix and am currently a member of Blockbuster Online. I often find myself going to Blockbuster just to figure out what to add to my queue (I did that with Netflix too).

There is nothing comparable to walking into a rental store and being able to browse the aisles and pick up a movie instantaneously....or see new, strange, independent, unknown or sleeper movies that you never heard of on the shelves....and would otherwise not easily find by browsing on Netflix or Blockbuster Online. Digital download rentals are even worse since they are typically not flexible....you can't just pop the file into a number of different dvd or Blu-ray players to watch on different tv's. You are typically just tied to one computer. I, for one, frequently rent a movie, watch it, then give it to one of my family members to watch before returning it.

I'm a member of Blockbuster's mail service (it's just like Netflix, only better). You get movies in the mail, just like Netflix, but you can also choose to return the movie at a store and exchange it for any movie, right there at the store....and you still get another movie, from your queue, in the mail. Blockbuster also has online rentals....where you can download movies. I don't do this for the lack of flexibility and speed that I mentioned above.

Blockbuster should continue to stay in business, if not, actually thrive. This is because Blockbuster is the only company that offers all the options...A physical store that you can browse and get movies instantaneously, mail order rentals and digital download rentals. They have made some bad business decisions in the past and were initially slow to adapt. But they have everything now. They must survive....and I'm confident that they will. Heck, for many people, Blockbuster is their only rental option. If blockbuster went out of business, they would no longer be able to rent movies.

notjustjay
Mar 4, 2009, 12:30 PM
Does Blockbuster not offer their online rental service in Canada?

Oh, they already have one? :o

No, not that I can tell in Canada. It's certainly not on their website, and I haven't seen mention of it in stores.

iShater
Mar 4, 2009, 12:31 PM
Same here. The blockbuster here in town are very rude. Family video is freakin' sweet. 2 for 1 rentals, cheap new releases, very friendly staff.

I haven't been in a while because of using netflix.
I haven't tried Netflix yet, but it is interesting that you mention the attitude. When I did go to BB, I remember not only not liking the prices, but also how they could care less if you were there or not. FV on the other hand are super nice, have good deals on older movies, and gives you options for how long to keep a movie and you pay accordingly.


I think the last time I was ever in one was around 1998 or so to rent some tapes. Didn't get a DVD player till the next year I think.

That was also the last time I ever rented a movie. I've bought several since but now that iTunes has movies, I just buy them.
I don't find too many movies worth buying :o I haven't setup any home multimedia network, so iTunes movies are not really an option yet.

Angie1313
Mar 4, 2009, 01:04 PM
I switched over to Netflix about a few months back and I think its great just for the convenience of it. You never have to worry about running to return a DVD back to BB before they close when its 10 degrees out. I simply drop it in the mailbox on my way to work.

Unspeaked
Mar 4, 2009, 01:42 PM
Oh, they already have one? :o

No, not that I can tell in Canada. It's certainly not on their website, and I haven't seen mention of it in stores.

I use neither it nor Netflix so I'm not sure of the differences, but they've had one in the US for a couple of years now.

It was way behind Netflix when it started, but I think they've been bridging the selection gap as time's gone by. I've heard Netflix is better for indie films and out of print titles, and Blockbuster is better for more mass-market stuff and availability.

One thing they do to differentiate themselves from Netflix is tie the service into their stores, so you can return things at a retail location and your next film gets shipped right out instead of waiting for it to get back to them in the mail. I think they also offer a select number of in-store rentals, depending on which plan you have.

(Funny, looking through this thread again, it seems like a lot of people - even in the US - aren't aware they offer a Netflix-like rentals-by-mail option. I wonder if that's part of their trouble?)

GreatDrok
Mar 4, 2009, 03:20 PM
.....Digital download rentals are way too slow, as well. Plus, you can't browse movies online (that you don't know already exist), very easily...be it on Netflix, iTunes, Blockbuster online or whatever other option there is.

Wow, are you still on dialup or something? My broadband is reasonably quick (6Mbps) and when I rent a movie from iTunes on my ATV it is ready to watch in under a minute for SD. HD can take a little longer but for casual watching I don't bother since the SD rentals look pretty good and only use 1/3rd of the bandwidth and I'm on a 20GB capped plan.

As for browsing, it is easier IMHO to find stuff on iTunes than to find them in Blockbuster.

neoserver
Mar 4, 2009, 04:26 PM
Wow, are you still on dialup or something? My broadband is reasonably quick (6Mbps) and when I rent a movie from iTunes on my ATV it is ready to watch in under a minute for SD. HD can take a little longer but for casual watching I don't bother since the SD rentals look pretty good and only use 1/3rd of the bandwidth and I'm on a 20GB capped plan.

As for browsing, it is easier IMHO to find stuff on iTunes than to find them in Blockbuster.

I still go to blockbuster, because as others have mentioned, when I'm in the mood to rent a video, I want to watch it NOW. I can get that level of service by going to a physical store. Netflix's delivery times simply just cannot compete.

Also, Not everyone has an ATV or HTPC to take advantage of iTunes' video rentals. One can rent a hell of a lot of videos from BBV for the same price as an ATV.

Dagless
Mar 4, 2009, 05:12 PM
I never went to Blockbuster (nearest was miles away) but gave up on the local rental shops years ago. We had Screen Select/LoveFilm in 2003-ish and just never had much need to go anywhere else. Now we have fastish broadband so no need for LoveFilm.

william sire
Mar 5, 2009, 12:35 AM
I guess we'll finally see the end of late fees

telecomm
Mar 5, 2009, 12:56 AM
I thought this Onion video (http://www.theonion.com/content/video/historic_blockbuster_store_offers) got it right.

I liked Blockbuster before they got rid of late fees. I never had a too much of a problem finding the films I wanted before this, but now no one returns videos for days, and it's only after that shift in policy that I had trouble finding things I wanted. (in both Canada and the US). That was the end for me, and now I'll buy a DVD or rent from an online store instead.

hexonxonx
Mar 5, 2009, 01:29 AM
I, for one, think Blockbuster is great. The problem with mail order rental (like Netflix and Blockbuster's mail order) is that it is too slow. Digital download rentals are way too slow, as well. Plus, you can't browse movies online (that you don't know already exist), very easily...be it on Netflix, iTunes, Blockbuster online or whatever other option there is. I've tried Netflix and am currently a member of Blockbuster Online. I often find myself going to Blockbuster just to figure out what to add to my queue (I did that with Netflix too).



I don't rent movies on iTunes, I like to buy them. Last night, I bought the Changeling. This movie is almost 2GB in file size. It took me 19 minutes to download it. I started watching it after only downloading 30 seconds of it.

SactoGuy18
Mar 5, 2009, 07:23 AM
What is killing Blockbuster is the combination of NetFlix rental service and the fact you can see both TV shows and movies online if you have a faster broadband connection.

Indeed, in the adult video world, broadband is the way to go--a lot of new adult video releases are now available in video on demand form.

ErikCLDR
Mar 5, 2009, 08:00 AM
The only time I go to BB is when I am at my house in Rhode Island.

It costs like $4.50 or $5.00 to rent a movie . I don't care that you can keep it for 5 days or whatever, I am just going to watch it the day I am buying it. It also pisses me off how they never have the real movie boxes, just those stupid blockbuster ones with no pictures.

emt1
Mar 5, 2009, 09:00 AM
My sister returned a DVD late, Blockbuster wanted my family to buy it, my parents refused, they sent collections after us. My mom went to the store and threw the membership card at them. I hope the company fails. That is not how you treat people who have been your customer since the beginning.

Keebler
Mar 5, 2009, 02:10 PM
i feel bad for any employees, but for the company, not really. it's not like i wish ill upon them, but if they can't adapt to changing technology, then it's their fault.

personally, i stopped going to bb a long time ago when I found out they edit certain movies by removing content.

for me, i'll visit the closest Rogers or dload from itunes. I love the convenience of choosing a movie and letting it dload while I do something else around the house. saves on gas, saves on time driving back and forth and allows me to do more at the same time.

I do wish there was a greater selection, but i'm not at a stage in life where i HAVE to watch a certain flick and if i do, there is the physical store to visit.

plus, the parking at the local rogers is an absolute b*tch b/c some idiot developer poorly planned a Timmy's so of course, there are tons of morons lining up for $1 coffee and donuts.

That is one thing I'll never figure out, but that is an entirely different topic :)

Cheers,
Keebler

gmecca2
Mar 13, 2009, 11:01 PM
Switched to Blockbuster Online after getting fed up with the local BB stores never having any new titles in stock.

I eventually dropped BB and got Netflix due to the larger selection of Blu-Ray movies and will never turn back. So much less of a hassle to just drop it in the mailbox and two days later I have 3 new movies. Netflix turn around time for me was also much quicker than BB.

Antares
Mar 15, 2009, 05:11 PM
it's not like i wish ill upon them, but if they can't adapt to changing technology, then it's their fault.


We're probably not talking about the same company then. Blockbuster, in the US at least, offers movies for rental in every possible way: Physical DVD/Blu-ray at the store, Mail Service DVD/Blu-ray, Online download. Join the online/mail-order service and you get access to everything. You can't get that with any other company (that I know of).

Physical rental stores are important and should stay around (I'm not just talking about Blockbuster but any physical store rental service). It's simply impossible to match the service, speed and human movie knowledge and suggestions that you get with retail rental stores. All of that is impossible online....unless Netflix, Blockbuster Online or any similar service has live people online that you can chat with instantly and create visual pop-ups on your computer showing you movies and pictures as they chat with you.

Netflix, Blockbuster Online and iTunes rental are great if you know what you already want....but not so good for browsing. No company has yet developed a way to browse movies as quickly, easily and as thorough as you can at a physical rental store.

notjustjay
Mar 15, 2009, 08:16 PM
We're probably not talking about the same company then. Blockbuster, in the US at least, offers movies for rental in every possible way

They don't in Canada (where Keebler and I are posting from).

BornAgainMac
Mar 16, 2009, 08:17 AM
I guess we'll finally see the end of late fees

I wonder what would happen if you rent a movie and they close down before you return it? I like how they call Late Fees = Extended viewing fee. That wording sounds so much better.

Melrose
Mar 16, 2009, 09:40 AM
I use Netflix. Had BB for a while, and while it was nice being able to go to the store to drop off yer vids and pick up new ones, I don't like the snippy, pushy & condescending salespeople. And not to mention in the cold weather I can rent just about any movie I want w/o wasting gas, bundling up, and driving 5 miles to the BB. Saves time, too.

Any movie I don't go see at the theatre I get from Netflix a couple weeks after it's out on DVD.

BB may be on the way down... now I wish this would happen to Walmart. Main St. dies whenever Wally World opens up.

, iPhone, and Twitter... three recent(ish) fads that don't interest me in the slightest... Methinks you're confusing 'fad' with 'runaway success' - However I agree Twitter may end up being a fad.. time will tell. iPhone and Netflix aren't exactly fads. Being hugely popular isn't the defining element of faddishness.

QuantumLo0p
Mar 16, 2009, 12:23 PM
Does Netflix have any process patents that would prevent Blockbuster from using a similar distribution model?

Unspeaked
Mar 16, 2009, 02:38 PM
Does Netflix have any process patents that would prevent Blockbuster from using a similar distribution model?

As others have said, they already run a similar business.

Plus there's even other companies doing the same type of thing with video games.

I don't think you can patent home delivery, even if it's specifically rentals.

gkarris
Mar 16, 2009, 03:29 PM
I end up buying the discs used/on sale for slightly more than the cost of renting.

Netflix for as far as renting.

Plus, the service at all the area Blockbusters are horrible... :eek:

I kept getting calls on the house phone that the videos were overdue, and I don't rent from them. The local Blockbuster said to call Customer Service. I tried calling Blockbuster Customer Service, which is in India, and the rep really didn't care and he said to call the local one. I called the local one back and he got upset.

I did too and told him he had to correct it or I'll file harassment. He managed to but said it wasn't his job...

What happens is that people, when they open a Blockbuster account, give a fictitious phone number, that may be someone else's, so that they don't get the overdue phone calls.

Blockbuster doesn't bother to confirm the number.

If they go out - they deserve too...

partyBoy
Jul 6, 2010, 09:43 AM
I'm kind of like half andf half when it comes to movie rentals...i go to b.buster and i use netflix...redbox is good but they need more blu-ray and more movies on their menu...the only problem i have with b.buster is the stupid late fees and they should increase the days for game rentals to 7 days instead of 5

Jaro65
Jul 6, 2010, 05:22 PM
This has been coming for some time now. They never managed to successfully address the change in customer demand.

rhett7660
Jul 6, 2010, 05:58 PM
Not to mention they are closing stores left and right (in my area all three are now gone and went within a month of each other). They are no longer being traded on the Stock Exchange. Good riddance and I hope they do crumble. Sucks for the people who are employed by thou.

Antares
Jul 6, 2010, 11:37 PM
Blockbuster may shrink in size but they are not going to go out of business. Many companies have been in a similar situation and have gone on to succeed.

Blockbuster is better than Netflix, overall. I have no doubt that they will survive.

aarond12
Jul 7, 2010, 01:35 PM
The shift from retail storefronts (expensive -- storefront rental fees, employee and manager costs) to DVDs in the mail (less expensive -- warehouse automation, employee and manager costs) to VOD (cheap -- bandwidth and technical employee costs) is how things will continue to migrate.

Even the $1 RedBox rentals have their days numbered because the MPAA wants better control over copy protection. It takes me just minutes to copy a DVD, but unless I exploit the "analog hole", I can't easily "rip" a movie off VOD.

-Aaron-

yg17
Jul 7, 2010, 02:10 PM
One thing they do to differentiate themselves from Netflix is tie the service into their stores, so you can return things at a retail location and your next film gets shipped right out instead of waiting for it to get back to them in the mail. I think they also offer a select number of in-store rentals, depending on which plan you have.


And the in-store rentals were really the only thing that differentiated Blockbuster from Netflix, and if they start closing retail stores, that will soon be gone, and eventually I think BB Online will go with it. Blockbuster has the name recognition for in-store rental, but when it comes to rent by mail, Netflix is king.

Come to think of it, I'm not sure if I've seen a BBO TV commercial lately. I see Netflix ads all the time. Perhaps they need to increase the advertising budget.

dmr727
Jul 7, 2010, 02:12 PM
My wife and I hung on to Blockbuster as long as we could, mainly because it was convenient to exchange a mailed DVD for another movie at a brick and mortar store without having to wait. But Netflix did the online thing, and while Blockbuster did as well, theirs wasn't Mac compatible. That's what ended up causing us to switch. This was back in February or so.

hismikeness
Jul 7, 2010, 02:13 PM
LINK (http://finance.yahoo.com/news/Blockbuster-hires-law-firm-to-apf-14534993.html)



I think the spokesman's denial is about the surest sign there is that they're in deep trouble ;)

My wife is pregnant right now... my kids are NOT going to know what a video rental store is.

Incredible.

mac88
Jul 7, 2010, 02:27 PM
My wife is pregnant right now... my kids are NOT going to know what a video rental store is.

Incredible.

It does seem weird doesn't it. Same as cassette tapes, vcr's, etc. Technology is growing so quick it's unreal.

JediZenMaster
Jul 7, 2010, 03:12 PM
I went past a blockbuster today that had a "Store Closing" banner up. I should of taken a pic of it with my iPhone.

JediZenMaster
Jul 7, 2010, 03:15 PM
Blockbuster may shrink in size but they are not going to go out of business. Many companies have been in a similar situation and have gone on to succeed.

Blockbuster is better than Netflix, overall. I have no doubt that they will survive.

Blockbuster may survive but they won't be a relevant as they once were and honestly if they do survive i can't see blockbuster being around past 2017 if even that long.

Video stores are a dying breed pretty much just like FYE will go under and just as Tower Records,Sam goody etc have.

I knew blockbuster jumped the shark when the one around my house started selling books.

a.jfred
Jul 7, 2010, 03:55 PM
Blockbuster is better than Netflix, overall. I have no doubt that they will survive.

I stopped renting from Blockbuster because they NEVER had what I wanted to watch; the local mom & pop rental places had a better selection than BB, and better prices. Netflix gives me better selection for better prices, particularly with what they have online. And really, if I didn't watch a movie in the theatre when it came out, what's another month or 2 for Netflix to get it?