Blockbuster May Not Stay in Business

Bigfish · « **on:** 7 Apr 2009, 11:46 pm »

The front page of the money section of USA Today (4/7) had the headline of an article, "Blockbuster may not stay in business."

The article states that "movie rental company Blockbuster says the risk it may not complete financing deals raises substantial doubt about its ability to continue as a going concern. Blockbuster disclosed the warning in a regulatory filing Monday.

I have a monthly subscription with Blockbuster and would hate to see them fold!

Ken

Ericus Rex · « **Reply #1 on:** 7 Apr 2009, 11:52 pm »

Netflix ...in the library...with the iron pipe!

satfrat · « **Reply #2 on:** 7 Apr 2009, 11:55 pm »

Just rented 3 DVD's today from Blockbuster and this topic never came up with the guy behind the counter who I know fairly well. Tuesday has always been Blockbuster day, it would be a blow to see them go.

Cheers,
Robin

jermmd · « **Reply #3 on:** 8 Apr 2009, 12:26 am »

I would be sad to see Blockbuster go. I too belong to the monthly rental plan and I have two local stores that I go to regularly. It seems like brick and mortar stores are becoming a thing of the past.

rahimlee54 · « **Reply #4 on:** 8 Apr 2009, 01:27 am »

Guess this is why Netflix doesn't feel any pain when laying on the fees for BR rentals, they may be the only show left in town, which would be bad because I read here and other places there is a 1 month lead time on most new release BRD. I hope BB can restructure or find an investor but good luck with that currently.

JoshK · « **Reply #5 on:** 8 Apr 2009, 01:42 am »

Yeah, sounds like bad news.

Story on Yahoo Finance

Do any of you guys of Redbox in your area? My wife just found this and we've used it a few times this week. We subscribe to BB's version of the netflix mail deal. But Redbox is pretty convenient and cheap. $1 per rental for 1 day ($1 per day after that if you keep it out longer).

We have the vending machines in a few grocery stores near us. You can check it out at the machine or pre-order online and pick up at machine. Drop off at any redbox you want (doesn't even have to be the same one you rented from).

www.redbox.com

ajzepp · « **Reply #6 on:** 8 Apr 2009, 02:06 am »

Serves them right....you intentionally run your business at a loss and steal proprietary software from your competitor, you deserve what you get. I used to go to BB all the time...loved their stores. Netflix came onto the scene and instead of being innovative and attempting to compete, BB became predatory and tried to run Netflix out of business. Good riddance!

lonewolfny42 · « **Reply #7 on:** 8 Apr 2009, 05:41 am »

Quote from: JoshK on 8 Apr 2009, 01:42 am

Yeah, sounds like bad news.

Story on Yahoo Finance

Do any of you guys of Redbox in your area? My wife just found this and we've used it a few times this week. We subscribe to BB's version of the netflix mail deal. But Redbox is pretty convenient and cheap. $1 per rental for 1 day ($1 per day after that if you keep it out longer).

We have the vending machines in a few grocery stores near us. You can check it out at the machine or pre-order online and pick up at machine. Drop off at any redbox you want (doesn't even have to be the same one you rented from).

www.redbox.com

Josh....See this......and...this...

sts9fan · « **Reply #8 on:** 8 Apr 2009, 11:59 am »

Remember Polaroid? If you do not keep up with the times you die. Getting into the monthly plan because you are getting clobbered is no way to stay in business.
Honestly if you switch to netflix you will not notice any difference in the amount of time you can glue yourself to the couch.
In the words of Ivan Drago "If he dies he dies"

Bigfish · « **Reply #9 on:** 8 Apr 2009, 12:15 pm »

Quote from: sts9fan on 8 Apr 2009, 11:59 am

Remember Polaroid? If you do not keep up with the times you die. Getting into the monthly plan because you are getting clobbered is no way to stay in business.
Honestly if you switch to netflix you will not notice any difference in the amount of time you can glue yourself to the couch.
In the words of Ivan Drago "If he dies he dies"

I think you made a very good comparison in comparing Blockbuster to Polaroid. Blockbuster erupted (literally) 10 to 15 years ago and drove mom and pop out of the VHS Tape (remember those) rental business. New BB Stores basically popped-up everywhere. Overhead costs for BB must be incredibly high. The advantage the BB monthly plans offer over Netflix is the ability to receive a movie in the mail, view it and then exchange it in a local store for another movie. You get to see the recent releases within a week or two of their release. Anyway, all things that are too good to last usually don"t.

Ken

sts9fan · « **Reply #10 on:** 8 Apr 2009, 01:12 pm »

Its actually funny that what they did to the mom and pops happened to them.

zybar · « **Reply #11 on:** 8 Apr 2009, 01:29 pm »

Quote from: sts9fan on 8 Apr 2009, 01:12 pm

Its actually funny that what they did to the mom and pops happened to them.

Circle of life (or business).

George

TheChairGuy · « **Reply #12 on:** 8 Apr 2009, 01:59 pm »

Too bad...they'll be missed here. I've had one in close proximity to me for 7 years now and have been renting happily from them for a few years before that in another locale.

Seems to good an idea in general for others not to take up the slack (other than Netflix).

I like visiting 1x per month with my daughter and looking at the DVD jackets for info. We buy 'on demand' a couple times a month on cable, too (and freebies too on demand), but the event isn't quite the same for us as actually going to a store for videos.

This too shall pass....

John

zybar · « **Reply #13 on:** 8 Apr 2009, 03:11 pm »

Quote from: TheChairGuy on 8 Apr 2009, 01:59 pm

Too bad...they'll be missed here. I've had one in close proximity to me for 7 years now and have been renting happily from them for a few years before that in another locale.

Seems to good an idea in general for others not to take up the slack (other than Netflix).

I like visiting 1x per month with my daughter and looking at the DVD jackets for info. We buy 'on demand' a couple times a month on cable, too (and freebies too on demand), but the event isn't quite the same for us as actually going to a store for videos.

This too shall pass....

John

John,

I haven't gone to a video store in probably 5+ years and I don't miss it one bit. I am perfectly fine with the way to business model has changed and evolved. Frankly, it isn't much different than how we buy music (which I am also ok with).

My only gripe is that the newer business model should produce a lower cost to the consumer and it hasn't really done that.

George

Don_S · « **Reply #14 on:** 8 Apr 2009, 03:45 pm »

There is a BB walking distance from me but I am not a fan. I had a gift card that expired. BB broke the law. In CA it is illegal for a company to put an expiration time on gift cards. When I contacted BB they sent me a new gift card for the exact amount of the illegally expired card. Not one cent for my troubles or apology.

I do not know if they were just sloppy or intentionally have cards expire because most people won't do anything about it. CA is a major state and any company doing business here (especially one the size of BB) should know the rules. I choose to think they did it on purpose because when I reported it to the State AGs office they merely sent BB a letter. There was no penalty for breaking the law. In fact, there were good reasons ($$$$$) to do so.

Now I have two BB gift cards but never find a movie I want to rent. They stopped sending me coupons for discounted rentals and I find the full price more than I think most movies are worth. Obviously I am not a big movie fan.

TheChairGuy · « **Reply #15 on:** 27 Dec 2009, 03:25 pm »

Yeah - I'll get over it, George.

My BB is located in a strip where there is a very good, casual eating joint that we frequent...so trips to it and the BB next door are nice events I have with my daughter.

We'll invent new, nice events, tho (until she is 11 and I'm iced from here life for half-a-decade or so)

John

Quote from: zybar on 8 Apr 2009, 03:11 pm

John,

I haven't gone to a video store in probably 5+ years and I don't miss it one bit. I am perfectly fine with the way to business model has changed and evolved. Frankly, it isn't much different than how we buy music (which I am also ok with).

My only gripe is that the newer business model should produce a lower cost to the consumer and it hasn't really done that.

George

Mike Nomad · « **Reply #16 on:** 27 Dec 2009, 04:03 pm »

I have longed for the day where Blockbuster, as a corporate citizen, coughs blood and dies. When Blockbuster went "big," they single-handedly destroyed a pretty good record store chain down here in Texas, Sound Warehouse.

Given the burn job Sound Warehouse did to Cactus Music and Video in Houston (and I'm sure countless other Mom & Pop's across the nation), some would argue the Sound Warehouse got what they deserved (George's 'Circle of Life' comment) for dancin' with the devil.

While I'm like a number of people here who seem to like going to a brick and mortar store, my hope is that there is a special, reserved Circle of Hell reserved for Blockbuster. With 'buster gone, maybe we would see some Mom & Pop stores open up to fill the need.

srb · « **Reply #17 on:** 27 Dec 2009, 04:45 pm »

As far as strangling and destroying smaller chains and mom & pop stores, it's no different than the effect of Home Depot and Lowes on hardware stores, Walmart and Target on general stores, Safeway and Kroger on grocery stores and Best Buy on audio stores.

Reserving a "Circle of Hell" for Blockbuster might be examined, especially if one shops at any of the above mentioned stores.

Quote from: Mike Nomad on 27 Dec 2009, 04:03 pm

With 'buster gone, maybe we would see some Mom & Pop stores open up to fill the need.

With the steady rise in home Internet service and the Netflix-type rent-by-mail services, any new local DVD/Blu-ray rental locations will most likely be limited to unmanned vending machines.

Steve

Mike Nomad · « **Reply #18 on:** 27 Dec 2009, 05:22 pm »

Quote

As far as strangling and destroying smaller chains and mom & pop stores, it's no different than the effect of Home Depot and Lowes on hardware stores, Walmart and Target on general stores, Safeway and Kroger on grocery stores and Best Buy on audio stores.

Reserving a "Circle of Hell" for Blockbuster might be examined, especially if one shops at any of the above mentioned stores.

Absolutely. I wasn't sure about going wider with the comment, since the original post was talking about Blockbuster. The headspace is sometimes strange: When I lived in a small town in Western Kansas, most people had a problem with the SuperGigantic WalMart in town, and how it did a beat-down on local grocery stores. However, no one had a problem with the JC Penney (or most of the other stores at the "mall") and their impact on other local merchants.

Quote

With 'buster gone, maybe we would see some Mom & Pop stores open up to fill the need.

With the steady rise in home Internet service and the Netflix-type rent-by-mail services, any new local DVD/Blu-ray rental locations will most likely be limited to unmanned vending machines.

Unfortunately, I think you're right. I was just engaging in a little post-Christmas wishing. Now if we could only get the vending machines to be locally owned AND operated...

Barry_NJ · « **Reply #19 on:** 27 Dec 2009, 05:57 pm »

As this thread was started in April, and Block Buster has made no new announcement about it's doom, I think we can say they're safe for the time being