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Blockbuster Files For Bankruptcy

Posted by Soulskill on from the ice-delivery-men-unimpressed dept.

Dallas-based Blockbuster Inc. filed for Chapter 11 bankruptcy protection yesterday, calling into question the futures of over 5,600 stores worldwide. The company will be evaluating each location on a case-by-case basis, and seeks to cut costs after reporting a $558 million net loss last year. Newsweek credits the company's slow adoption of new media distribution methods as a big reason for the company's decline. "... while Blockbuster discussed creating its own subscription service to rival Netflix, it wasn't until August 2004 that its online DVD rental program actually started in the US. And when, in 2004, Coinstar entered the market with its Redbox DVD kiosks, Blockbuster didn't begin installing similar devices until 2008." CNET suggests that "Leaders of pay TV services might be wise to start doing the business equivalent of digging foxholes and manning the battlements or the same thing could happen to them."

3 of 390 comments (clear)

  1. I'll miss them by beschra · · Score: 5, Interesting

    Browsing in a browser just doesn't hold up to browsing the physical media. Guess I'm just a library kinda guy.

    --
    It is unwise to ascribe motive
  2. The Onion by oldspewey · · Score: 5, Interesting

    Obligatory Onion reference

    --
    If libertarians are so opposed to effective government, why don't they all move to Somalia?
  3. Re:Time for them to throw in the towel by Maxo-Texas · · Score: 5, Interesting

    There also has to be a reason Netflix can get buy on $8.95 or $15.95 a month.

    Lower salaries? Corporate offices in an inexpensive location? No corporate headquarters?

    Older companies build up fixed costs over time. If they get big enough, they get the law changed to protect them. If they don't make that size, the die off.

    I finally bit the bullet and signed up for netflix last night.

    AMAZING.

    Took under 10 minutes and I was watching "Pushing up Daisies" and then browse parts of several movies.

    With my new blu ray player (still in the box) I should be able to watch these on my TV too.. .and on my iPhone.. and at my friend's house on their computer.

    Amazing. Incentives for pirating drop waaaaay down when you get "all you can eat" for $8.95. Some stuff I'll have to wait to come in the mail.

    Seems too good to last-- to good to be true.
    At some point the people supplying netflix will raise their rates as they did on the cable tv providers.

    But for now- nice.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.