WSJ: Blockbuster Preparing for Bankruptcy Filing

[queenweb]

I wonder if the Australian franchise is under threat?
As Red Room DVD & Oovie have crappy movies to rent plus no Blu-ray

 

[ikefu]

They have always been the most expensive rental place but they survived because they often had a monopoly on movies rentals in populated areas.

When they lost their monopoly they apparently forgot that they needed to play the price war game. Obviously the other side didn't.

 

[aliened]

Nice... I'll go and rent all my fav games and wait for BB to finally bankrupt so that way now I'm gonna get a REAL deal, new games for just 15 bucks

 

[aliened]

Nice... I'll go and rent all my fav games and wait for BB to finally bankrupt so that way now I'm gonna get a REAL deal, new games for just 15 bucks

 

[husker]

[citation][nom]MrTonyD[/nom]I worked at a Fortune 500 company that worked with Blockbuster - they didn't want any technology that would help the customers avoid late fees - those late fees were their huge profit and bonusus. So I have no sympathy for them. I'm sure those same executives milked the company for millions more before killing it. Is anyone still so naive as to believe that companies exist to serve customers?[/citation]
An interesting point and it does sound like Blockbuster was arrogant. But when you think about it, Netflix has it's late fees built right into their subscription model. Since you are paying a monthly fee even if you don't get any new movies, then that monthly fee is no different from a late payment. In other words, with Netflix your choices are 1) rent a movie even if you don't want one or 2) pay anyway for a movie you've already watched but haven't yet returned. Sounds just like a late fee to me.

 

[back_by_demand]

I have no sympathy because they saw the future over a decade ago.
Postal rental, streaming services, digital distribution.

During Blockbusters "salad days" they should have been investing in the future instead of thinking bricks and mortar was going to last forever.

If everyone had that attitude we would still have millions of people working manual labour in cotton mills or down the mines. Get with the 21st century or go out of business.

 

[NuclearShadow]

I use to go to blockbuster in the 80's and early 90's. Back in those days despite the normally higher prices it was certainly the best place to go as the selections were simply huge compared to the competitors. But today they are simply obsolete. While its no doubt that Netflix and other services played a large role in bringing BB down I am left wondering if piracy played a role as well. Anyone with a decent connection could download a dvd rip and even burn it if they so wish likely faster than it would take to drive to the store, find the movie, and drive home.

I always wondered why BB was unable to successfully compete with Netflix online however. BB already established a name for itself and was well known. It certainly back then had much more financial backing and yet they failed miserably. All they would have had to do is give slightly better prices and they would have drove Netflix into bankruptcy and regained their monopoly. Instead they underestimated the sleeping giant and woke up and crushed them.

I guess either way if BB did go the right route countless stores if not all would have closed regardless due to them being irreverent today. I really feel sorry for the employees. But I guess everyone knew this was coming.

A quick note I have a feeling Radio Shack will be next. Have felt this way for many years now. Whats the point in normally very small stores that hold nothing unique and tend to have higher retail prices than elsewhere? They too made the same error as BB and never really expanded and while great in their prime have become irrelevant and outdone today.

 

[dtq]

BB lost my business not due to any download services legal or otherwise, but due to ridiculously cheap prices of buying dvd's outright online. I rarely pay more than £2-3 a movie including postage, its a unused disk, and I can watch it as often as I want, take 6 months to get round to watching it etc etc. As a direct result of this I havent been inside blockbusters in at least 8 years, and my collection of dvds has went from a handfull to probably 400.

Back in the 80's renting a film for £1-£2 made far more sense than buying it for £15, but now for me it makes far more sense to buy than rent, although it does mean I have to put up new shelves periodically.

If I really want to watch a new film, I will do so at the cinema (although its rare) otherwise I just wait for it to come down in price on dvd. Its not as if we are starved for entertainment these days. I have more than enough to keep me busy whilst waiting for the "latest film" to come down to a sensible price.

 

[extremepcs]

I stopped going there 15 years ago, when they turned me in to a collection agency... for a TWO DOLLAR late fee. I cut my card in half and mailed it in with the check. Stupid business practices like this, plus the fact that they censor movies... I'm amazed they lasted this long.

 

[mauller07]

Damn where am i going to copy, i mean time shift for later viewing my blue-ray movies from now?

rofl

 

[TunaSoda]

Good, bye.

 

[goodsyntax]

Blockbuster had a good idea that shored up it's brick and mortar stores for a while at least. You could return your movies received via subscription to a store and receive a free rental credit. Their subscription undercut Netflix and the in-store exchange was great!

Unfortunately, their actual in-store rental prices were, are, and always will be absurdly priced. Furthermore, not offering a free streaming service (a-la Netflix) is a death-knell to their model. Why would anyone want to pay $4.00 for instant viewing when you can do the same through your cable company?

Even now, they still cannot leverage some of their negotiated advantages with the studios, such as immediate rental availability on new movies (instead of the one month delay from Netflix), exclusive movies, etc.

From the top down, their leadership, vision and management are pathetic.

I am glad to see RedBox is giving Netflix some competition. Hopefully, someone will be able to offer an online-only model of streaming movies that have all the latest releases available immediately. Without the need of receiving and shipping warehouses, the subscription should be cheaper as well! Maybe Hulu Premium (are you listening Hulu)?

 

[eatmeimadanish]

Serves them right for completely resisting the Netflix model. They had an oppurtunity to use their stores as mini mail centers where you could get your movie that day if you wanted to. Wouldn't that have been awesome? NOPE they decided to overcharge their own customers in late fees.

One more example of elitist company owners driving their business into the ground pursuing outdated ways of making money.

 

[dustcrusher]

I've browsed my local store a couple of times recently. The people working there are genuine movie fans who actually seem to like their jobs. They knew their stuff and treated me like I was a preferred customer. Reviews online just aren't the same- it's hard to explain, but I'd say it's not that different from trusting your knowledgeable friend's opinion over some random reviewer online.

Blockbuster's glory days are behind them, no doubt. However, people will pay a premium for really good service no matter how advanced technology gets. Hire more quality staff, set up a customer-friendly price/late fee structure, lock down some first-dibs exclusives- in short, give customers what Netflix and such can't give via the mail or direct download. It would at least buy them enough time to try to get competitive on the digital front.

 

[husker]

Please note: the article did not say Blockbuster is going away. This bankruptcy will free them up to do exactly what they need in order to compete better with netflix.

 

[joebob2000]

The nail in the coffin was their attempt to get a lock on the new releases market by buying exclusivity of movies from major studios. Instead of innovating they tried a strong-arm tactic to create a monopoly. I hope that Blockbuster burns a good long time for this, and that the ashes serve as a reminder to anyone else who thinks corporate capitalism knows no wrong.

 

[Aintry]

[citation][nom]husker[/nom]Please note: the article did not say Blockbuster is going away. This bankruptcy will free them up to do exactly what they need in order to compete better with netflix.[/citation]
Yeah, bankruptcy is just part of Blockbuster's business model. Wall Street, take note.

 

[Aintry]

[citation][nom]husker[/nom]An interesting point and it does sound like Blockbuster was arrogant. But when you think about it, Netflix has it's late fees built right into their subscription model. Since you are paying a monthly fee even if you don't get any new movies, then that monthly fee is no different from a late payment. In other words, with Netflix your choices are 1) rent a movie even if you don't want one or 2) pay anyway for a movie you've already watched but haven't yet returned. Sounds just like a late fee to me.[/citation]

Husker, you're not penalized by Netflix for keeping a movie as long as you'd like. I sometimes watch a movie I like more than once. Some people can't watch a movie immediately (you know, like on a work night?), and need to set it aside for later, like on a weekend. Again, no problem with Netflix. Blockbuster? Forget it; late fees, if you don't time things just right.

And guess what? Blockbuster's headed into the tank. Awwwwww....

 

[husker]

[citation][nom]Aintry[/nom]Husker, you're not penalized by Netflix for keeping a movie as long as you'd like. I sometimes watch a movie I like more than once. Some people can't watch a movie immediately (you know, like on a work night?), and need to set it aside for later, like on a weekend. Again, no problem with Netflix. Blockbuster? Forget it; late fees, if you don't time things just right.And guess what? Blockbuster's headed into the tank. Awwwwww....[/citation]
You mean you don't have to pay the monthly fee when you keep the movie and don't get another one?

 

[capt_taco]

Well, what use were they anyway if they didn't rent porn.