Blockbuster Files For Bankruptcy

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."

Comments

I'll miss them

[beschra]

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

Re:I'll miss them

[kg8484]

Guess I'm just a library kinda guy.

Then go to the library. I haven't needed Netflix nor Blockbuster for a good long time. My library is part of a rather large network of libraries. I can go to the library itself and browse available titles and I can also put a hold online for pretty much any movie I want. Yes, I have to wait a bit longer for recent releases compared to a pay service, but I'm patient and there are plenty of older good movies that have zero wait that you can watch in the interim. Now, if you live somewhere where there aren't any good libraries, well, I guess you are SOL. I've never had this problem, but I guess if you live in the boonies it affects you.

Re:I'll miss them

[nizo]

Neither Netflix nor Amazon should even exist, but for the stupidity of Blockbuster and Barnes and Noble. I can see the clueless management of both companies now:

"Oh that intertooob thingy will never catch on!"

Re:I'll miss them

[Albanach]

It's an incredible strategy they're undertaking.

They don't have free streaming, so what separated their plans from Netflix was that you could exchange in store.

Here they closed all three local stores leaving over 100,000 people without a local Blockbuster. Overnight, their rent by post plans were more expensive than Netflix and more restrictive. They also appeared to be slowing down shipping movies, where they'd often be sent out the day after your return was received, rather than the same day.

Then they started rolling out kiosks, like RedBox. But if you have a mail in subscription, you can't use your free rental coupons in their kiosks and you can't do returns or exchanges to their kiosks.

They seem hell bent on destroying themselves, and that doesn't engender much sympathy.

Re:I'll miss them

[AdamWeeden]

This post needs some perspective I think. Let me qualify my post by saying:

1) I am a former Blockbuster employee (5 years ago while I was in college).

2) I am a current Netflix subscriber and occasional Redbox user. I can not recall the last time I walked into a Blockbuster. I think their business model is archaic.
 

Don't forget their end of latefees-- which ended up the king of late fees. Apparently, if you kept the DVD, no late fees occurred, because they just charged your credit card for the purchase of the movie.

Which only occurred after you didn't return it for a week! Did you think they were just going to let you keep the movie forever?

Apparently, if the new release you were looking for wasn't in stock, they'd give you a little paper rain check that says "You can rent this dvd at a future date for exactly the same price it is today, no questions asked!" Which would be just awesome, except.. their prices didn't really change often.

Unless this changed since I worked there, this is out and out wrong. The rain check was for a FREE copy of that title on your next visit.

The Onion

[oldspewey]

Obligatory Onion reference

Re:Time for them to throw in the towel

[Maxo-Texas]

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.

Re:I Won't

[LordKronos]

there's no connection between "I saw a movie last night" and "I must return the movie"

Wow, you can't even remember for 24 hours (or 2 days, or however long your rental is)? I don't know what to say. Perhaps I'd just suggest that, when you're done watching, instead of throwing the movie on top of your entertainment center or somewhere out of the way, perhaps you can set it with your car keys or something, so that it's very obvious to you. I expect your response will probably be "no thanks, I'd just prefer not to rent movies instead", but if you have that much trouble remembering things, then just take it as general advice.

I'm sure you can be anal about it and never get a late fee, but I'd rather have not go through that effort just to watch a damn movie.

Anal? WTF? You say that like I sit there all day saying "gotta return that movie, gotta return that movie", post notes all over the house reminding me, and have a daily checklist with an item labeled "returned rentals (if applicable)". Is it anal that I remember to put on pants before leaving the house, too?