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Netflix May Already Be Killing Blockbuster?

Mattintosh writes "A blogger at C|Net takes a moment to consider the impact Netflix has had on Blockbuster. Some notable highlights include heavy losses ($35 million), job cuts ($45 million worth), and store closings: 'Much like the print media and retail stores refusing to change, Blockbuster has been a victim on an online company finding new and inventive ways of bringing a product to a customer. And due to its size and outdated corporate culture, there really is no salvation for Blockbuster at this point. Try as it might, the future of Blockbuster is bleak, at best. Sure, the company still enjoys revenue that climb into the billions of dollars, but with an ever-increasing net loss and a public refusal to focus on Total Access--the area where Netflix continues to dominate--what is the impetus for us to jump on the Blockbuster bandwagon?'"

25 of 302 comments (clear)

  1. Thank Big Tel/Cable by dal20402 · · Score: 4, Insightful

    Meanwhile, the only thing saving Netflix's ass is the anticompetitive nature of the telecom industry in the US, which causes us to have broadband slow enough to make downloading DVD-quality movies too painful... time marches on.

    1. Re:Thank Big Tel/Cable by yndrd1984 · · Score: 4, Insightful

      When I go to Netflix I see "Watch movies instantly on your PC". Did I miss something?

    2. Re:Thank Big Tel/Cable by dal20402 · · Score: 2, Insightful

      I prefer my movies to be of reasonable quality. Netflix's selection of DVDs is also much greater than its selection of downloadable movies.

    3. Re:Thank Big Tel/Cable by JoeyBlaze · · Score: 2, Insightful

      That's funny, I was just telling someone how I couldn't tell the difference in regular TV and Netflix's Watch Instantly (on a 42" set)...Granted I wasn't expecting it to be great quality, I am still impressed with the service.

      Apart from a limited selection (~5K titles), and the fact it only wants to run in IE (but has a simple full-screen interface), it is everything I would expect from the company's early approach at on demand streaming video.

      I guess YMMV, but they do include it at no additional cost. At least we are seeing some entry into this market; it's only going to get better over time.

  2. My only problem with neflix by schnikies79 · · Score: 3, Insightful

    It's a subscription service and a brick and mortar blockbuster isn't.

    It would be nice if someone offered a service where I could just request a movie, pay my couple of bucks or whatever and have it mailed. If I didn't want anything that month then I wouldn't have to pay.

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    Gone!
    1. Re:My only problem with neflix by Chysn · · Score: 2, Insightful

      > It's a subscription service and a brick and mortar blockbuster isn't.

      The response to that is that Blockbuster's rates for new releases are ridiculous. It's been a while since I've used my Blockbuster account, so I might be a few percent off here, but Blockbuster is now charging close to $4.00 (USD) for DVD rentals. So you don't need to watch too many movies per month with Netflix to blow Blockbuster away for value.

      My experience with Netflix is that they're one of those rare businesses that keep exceeding my expectations.

      Downside: As an Ubuntu user, I'm S.O.L. on using their online viewing service. That's still IE-only.

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    2. Re:My only problem with neflix by Anonymous Coward · · Score: 1, Insightful

      I know this is slashdot, but try going to the movie (or watching the rented one on your couch) with an actual girl. Movie: $12.00 for tickets, $9.00 for soda and popcorn. Home - $4.00 for DVD rental, $2.00 for soda and popcorn. Which one wins now? BTW, I just went to a movie yesterday at a theater during the "matinee" timeframe and it was $7.00 per ticket. It's more in the prime time.

    3. Re:My only problem with neflix by RulerOf · · Score: 2, Insightful

      It's a subscription service and a brick and mortar blockbuster isn't.

      I couldn't help but notice while reading this article how ironic the seemingly universal praise for netflix is in light of your words... It's a subscription model, everyone seems to love it, and you don't get to keep the movies when you're done watching them, or when you cancel the service.

      Now, DRM issues aside (pretend it doesn't exist), why do we slashdotters go out of our way to praise netflix so, and then to continually bash other subscription based rental services from companies like Napster and Microsoft when they're doing almost exactly the same thing with better delivery times but only slightly different material? Do we, as consumers of this content, view both kinds so differently?

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  3. Good riddance by Anonymous Coward · · Score: 1, Insightful

    The Blockbuster near me closed at the beginning of this year. The storefront was vacant until about 3 weeks ago, when a Halloween store set up shop there. I'm sure once that clears out the space will remain empty for another 6 months or so. And this is right in the middle of a good-size city. The nearest video store is about 2-1/2 miles away (again, this is in the middle of a city). The thing is that I don't even miss it. I've been screwed over enough by them. I don't use Netflix anymore either, but if they can help get rid of Blockbuster, then more power to them.

  4. Total Access kicks Netflix's butt by llamalad · · Score: 5, Insightful

    Blockbuster's online offering is far superior to Netflix's.

    Netflix constantly sent me random movies from my queue instead of using anything remotely resembling the order I'd prioritized them in. IIRC, they were everntually sued for that.

    Blockbuster only seems to have tried that twice with me and a single email to their customer care address resolved that and got me an apology along with it.

    I can also drop my total access movies off at the local LackLuster and trade them for free in-store rentals. And they ship my next online rentals the next day.

    Not affiliated, just a happy customer.

  5. Re:Needless to say... by aztektum · · Score: 4, Insightful

    For a minute there I was going to mod -1 overrated but I thought I'd reply instead. Apparently some mods were swayed by your flashing for the cameras and offering up a sound bite.

    But as I see it, even if the MPAA *did* blame it on piracy, the article is about Netflix *winning*, so right there is a built in counter-argument. That is to say, "If it's piracy, MPAA, then shouldn't Netflix be eating shit too??"

    However, there is the argument that the MPAA is a buncha lying fucks, so in a way you have a point. Don't put anything beyond them, even if there is a possibly logical argument to the contrary.

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  6. Amazingly... by whystopnow · · Score: 5, Insightful
    ...Netflix lowered monthly subscriptions a month or so ago. Sent me a letter saying "we're dropping your monthly subscription cost by a dollar and adding streaming movies."

    First time in my life a subscription service has gotten cheaper.

  7. Re:Don't they have a similar service now by Joe+Tie. · · Score: 2, Insightful

    You're dead one with the comment about selection. That's why, in the end, the in-store exchange didn't matter to us. It took a surprisingly short time to rent every movie they had there that looked interesting. They hardly ever actually had anything in there that we specifically wanted to watch. It shouldn't surprise me too much, after all they're named "blockbuster". Indi, foreign, low budget, old, obscure, documentaries, just plain weird shit, etc etc aren't what springs to mind when that title comes up. Still pretty disappointing though.

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  8. Re:Needless to say... by JackieBrown · · Score: 2, Insightful

    I would think that video rentals would help lead to piracy (renting then ripping - makes it more anonymous as well.)

  9. Re:Some companies deserve to die. by canajin56 · · Score: 3, Insightful

    The best part was when they doubled their late fees, and advertised it as "NO LATE FEES" then in microscopic print "because we doubled the late fees and renamed them restocking fees"

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  10. Re:Needless to say... by MrCopilot · · Score: 2, Insightful
    But as I see it, even if the MPAA *did* blame it on piracy, the article is about Netflix *winning*, so right there is a built in counter-argument. That is to say, "If it's piracy, MPAA, then shouldn't Netflix be eating shit too??"

    Where do you think the "pirates" get their movies? Netflix makes it cost efficient. Blockbuster does not.

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  11. Re:Lovely Contradiction by wuputah · · Score: 4, Insightful

    Revenue is not profit, and if your market is a brick and mortar store, there is a limit to how much you can cut costs - you have to stock the store, pay employees, etc etc. Closing stores means losing that market, but I suppose they could simply close all stores operating at a loss... I wonder how many stores they would have left.

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  12. Re:Damn by lubricated · · Score: 2, Insightful

    neither blockbuster nor netflix offer porn.

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  13. Blockbuster lost me when... by timmarhy · · Score: 2, Insightful
    ... they sent me threatening letters stating they'd take me to court over $20 in late fees.

    I called their bluff and said fine take me to court over $20.

    They didn't get that money, and they won't ever be seeing anymore from me. the SMART business move would be to send me a buy one get one free voucher, stating as a sign of good will we are wiping your late fee's and would love to have your business back. THAT would have probably seen me giving them repeat business. Now they get nothing.

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  14. The way I see it by jhylkema · · Score: 2, Insightful

    Every time I go into Blockbuster, all I see are a couple hundred copies of the latest straight-to-video abortion. No wonder they're going bankrupt.

  15. Neither is good enough by Compuser · · Score: 2, Insightful

    Whoever is the first to have a foreign film section which is
    a. In native language
    b. As complete as Hollywood section
    will get my dollars. There is cinema everywhere - Korea, China, Brazil,
    Russia - everywhere; but try finding these movies at Netflix. There will
    be a few but for instance some of my favorite 1970's French movies are
    not there. Many good movies are indies or equivalent - short run, never
    been in wide release type. Again, hard to find. Some movies were dubbed
    into other languages. Are these dubbed versions avaliable along with originals?
    No.
    I speak Russian. Can I find Eisenstein movies on netflix? In Russian?
    These guys do not want my dollars so they don't get them.

  16. Re:Needless to say... by aztektum · · Score: 3, Insightful

    Actually for a pirate, Blockbuster is the better deal (not that I have looked into this. I'm legit. Promise.)

    For 17.99 a month you get 3 by mail at once, unlimited by mail per month, PLUS you can take them into the store and trade each in for store flicks, and they STILL mail you your next 3.

    A pirate could kick ass on volume with Blockbuster. Not that I would ever look at it that way. I'm legit. Promise.

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    :: aztek ::
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  17. I prefer Bllockbuster to Netflix by beavmetal · · Score: 3, Insightful

    1st.) The highest level tier for both services is basically the same price, However
    2nd.) The blockbuster 500 yards from my apartment, will let me exchange my mail order movies for free ones
    3rd.) as a result the best value for my dollar come from blockbuster.

    Assuming I can get 3 new movies every 4 days via mail from either service I get 21 (rounding down) movies a month. However, with blockbuster, I get 21 more from the store. 42 movies block buster (approx $0.595 per movie), 21 movies netflix ($1.19/movie).

    It's obvious which service will quickly fill up your disk drive while giving you an excellent value.

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  18. Re:We'll be talking about Gamestop's death eventua by Xuranova · · Score: 2, Insightful

    I like to think there are enough people out there like myself who detest steam. Why do I need to be connected to the internet to play a single player game? Why am I going to pay full price to dl a game? If I'm paying full price I want a disc, manual(preferably color) and some fancy box art.

    Do we need Gamestop? Nah. But I'm not paying for digital only distribution. Give me my pretty box and disc please :)

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    "There is no real right or wrong, just what the majority accepts at the time."
  19. Re:Some companies deserve to die. by fermion · · Score: 2, Insightful
    Pundits like to indentify a single source, but is it seldom so simple. Single sources make for good case studies, which make for good sales, but this is not reality. Reality is that at blockbuster you can get the latest movie on the way home, but perhaps you don't have time to return it for a week. Reality is that I can own most most movies for around $15-$20 from any store, or have then delivered for less in a couple days. The reality is that blockbuster did it's best to kill the rental business by killing every competitor. A single supplier commodity market is not viable as there is no one to fill in the holes.

    Blockbuster was so susceptible to netflix because it was not has been in customer service oriented position in years. It base philosophy stems from the renting of trash containers to commercial interests, not serving end users. Blockbuster sets terms and conditions that will generate profits through brute force, not finesse sales through customer satisfaction.

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