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Blockbuster To Close Remaining US Locations
UnknowingFool writes "Blockbuster announced that it will close its remaining 300 U.S. locations by January and discontinue the DVD by mail service. Before being bought out by Dish, the chain was slowly closing locations. Dish's CEO said, 'This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment.' From an all-time high of 9,000 locations in 2004, the chain has fallen on hard times and had emerged from bankruptcy in 2011."
Blockbuster still exists?
They were supposed to close years ago. They never got the memo because they only communicate by telegraph.
Their horrid business model that started in the early '80s when every corner store, supermarket and chains rented VHS tapes was not only overdue to be marked for death, but also caused wasted resources (driving to Blockbuster to rent, then driving back to return), was usurious (arbitrary, unjust and possibly illegal "late fees") plus they had a shitty selection, anyway with no adult section. Good riddance..
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My sister still likes going to the store and browsing. This is crazy to me.
I've been a happy blockbuster by mail customer for some time, I'm sad to hear that they're decommissioning the service as Lovefilm sucked with their poor QA. I'm not very happy about the thought of relying on digital distribution services to supply the same quality as a DVD over the network, sitting down and watching a film in a living room is far better than using a poxy computer for a film.
Why UNIX?
I loved going in and buying the used flikcks; sometimes 4 DVDs for $20 or 2 Blurays for $20. I built up a nice physical collection which I much prefer to just files. If they shut down any local stores I'll make a point to be there early for the sell-off day.
I guess I'm in that minority that likes the in-store experience and browsing shelves rather than clunky cable box UIs.
I swear to God...I swear to God! That is NOT how you treat your human!
I realise I live in an 18th century house with '70s heating system and am dripping in Old Money, which means I have the best money could buy... 30-300 years ago, but have people really moved on that quickly that everyone today has an IP-connected TV in their living room with which to watch films?
Dish's CEO said, 'This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment.'
Oh, sure, blame it all on the consumers!
Let's be realistic here: Yes, increasing consumer demand for instant gratification is part of the video stores downfall, but they're experiencing an equal amount of pressure from the content cartels, who have spent years trying inadvertently (or intentionally) to kill off the rental industry with their obsession over controlling how consumers can access media.
Content cartels... like Dish Network.
An enigma, wrapped in a riddle, shrouded in bacon and cheese
17 years from now, someone will write a listicle mentioning that graduating high school seniors have never seen a Blockbuster Video Store.
I actually still like to go to one near my house. Call me old-fashioned, but I still like physically browsing, getting (some, not many these days) extras, and the better video quality of blu-ray over streaming.
The cow says "Moo." The dog says "Woof." The Timothy says "Thanks, valued customer. We appreciate your input."
Mine only closed about a year ago. It was replaced by a nice restaurant. Here's hoping everyone else gets a nice replacement.
I remember going into Blockbuster just to buy a bottle of Coke. That wasn't enough to keep them in business?? :(
It would be easy to say that Netflix killed Blockbuster, and certainly Blockbuster inflicted harm on themselves. Netflix did play a part but Blockbuster's problems come from a business model that came under threat from multiple fronts.
Netflix challenged Blockbuster by offering both instant streaming and titles by mail services but mainly in older titles and TV shows. Blockbuster still had an advantage for consumers in new releases.
Unfortunately, the rise of VOD competitors like Apple's iTunes, Amazon Instant, VUDU, Microsoft, etc offered consumers better choices when it came to new releases and offered advantages over Blockbuster. Even at the same price of a Blockbuster rental, consumers didn't have to physically get and return the title. Stock was never a problem, and the catalogs were better than a consumer could get at a Blockbuster's location.
For consumers that could not stream video, Redbox has taken away the last advantage of Blockbuster. The prices are cheaper and even if the selection is as limited as a Blockbuster location, there are far more Redbox locations. Since Redbox's model allows rentals to be returned to any location, this means the death of Blockbuster in many locations.
Well, there's spam egg sausage and spam, that's not got much spam in it.
Blockbuster pushed out many of the independent video rental places. I wonder if some of them will make a come back, to fill what ever niche there will be for renting physical videos. Or maybe that niche just won't exist anymore.
My God can beat up your God. Just kidding...don't take offense. I know there's no God.
I always find it difficult to understand the mentality of those cheering and saying good riddance that a long time business [even former giants of the industry] has failed.
Hey, it could be your workplace next.
If each mistake being made is a new one, then progress is being made.
If they were on every corner then you could walk, no driving necessary. Coincidentally mine was actually on my corner. I walked by it often, near daily, sometimes I stopped in.
Others were located in shopping centers that people were driving to or driving by anyway. Over the decades I don't think I made many special trips to the video store. The resources argument seems to be a red herring.
That said, its an obsolete business model. Mine turned into a nice restaurant, something far more useful these days.
They had the worst selection in the industry and once they pushed out ma and pas they jacked up their prices too high. I don't watch television or movies myself but my mother switched to Netflix by mail. Personally, I don't pay for any video ever. I watch what I need on Youtube.
A large segment of the market is not watching their movies on the TV in the living room, or any other room for that matter. There is a huge generational shift to kids watching movies on a computer or tablet.
They went digital then they switched from VHS to DVD.
You can go into Target or Walmart and buy 4 DVDs for $15 or less - NEW.
When my local Hollywood Video was closing down due to bankruptcy, they had plenty of videos for REALLY cheap - like Harry Potters for $5!
They all looked like someone played street hockey with them - just like my library versions.
It seems that folks let their little shits abuse the DVDs - regardless where they come from.
Parents these days don't know how to say "NO!" and why their kids are obese sacks of entitled shits who demand junk food for breakfast, lunch and dinner and get it.
No really. Every goddamn Harry Potter video at my library in the Cobb County system is fucked up. Yeah, I'm in the Bible belt and everything (Jesus freaks HATE Harry Potter because it's not Jesus!), but every one?!
Was the used DVD market. Why rent a movie for $3.99 when you can buy a used copy on ebay or Amazon for less than that?
Yes, I believe Redbox basically built itself a monopoly on the rental kiosks, for that matter. There were several independent firms selling vending kiosks (such as "DVDNow" systems) but everything I've read from people maintaining them says it's little more than a break-even proposition at best.
The companies offering the independent kiosks try to profit off monthly fees charged for such things as fresh artwork designed to put on the kiosks to advertise the current offerings for rent, and for the bar-coded labels required on each DVD so the machine can catalog it properly. But the big profit killer has always been the credit card processing fees. Especially when each transaction tends to be for as little as $1 or so each, card processors want a large cut to handle those. And don't forget the internet connection to the kiosk so it can do the card transactions.... If you install your kiosk at a location where the owner says you can just use his/her existing internet connection, you're at their mercy if the connection goes down, so that can eat into any savings obtained by not paying for a dedicated line.
As an independent, you're also stuck running out to stores like WalMart regularly to buy new DVDs to load in the machines, not to mention keeping on top of replacing scratched or damaged discs. Imagine how much work is involved in maintaining a vending machine route, and multiply it by all the complexities involved in renting (vs. just selling product) and a more complicated and expensive vending machine (more costly repairs when it breaks down).
It stands to reason that once a "big player" like Redbox (initially backed financially by McDonalds -- who also conveniently served as an ideal high-traffic location for thousands of the kiosks) got into the game, everyone else was squeezed out.
I think that's only because they control the tablet, and their parents control the TV. I don't see people choosing a tiny screen with terrible audio when they have the means for a better experience.
Except that "rental" DVDs (labelled as such for years) specifically do not HAVE these features. The goal is "turns" and a D.C. means the customer will watch it a second time with the D.C. turned on.
I come here for the love
My son watches Netflix on his cell phone... talk about a tiny screen.
It transmitted across the world at the speed of light, cutting days or weeks off pre-telegraph communications. Sundenny far off news was timely, instead of in the past.
The telegraphs main problem was its small bandwidth of 10 or so bits a second.
http://www.youtube.com/watch?v=eJ6uRohdv4Q
If you could reason with religious people, there would be no religious people
Um, I've been through enough M & As to know that businesses blow out all the time. I could care less, because it just means my commute and officemate wage slaves are going to change.
Whenever I get the memo that we're merging with someone else, that's when I start updating the resume and putting out feelers.
If I time it right, I can pick up the earlybird package before I leave for my next job, but if not, that's okay. The important thing is to get out before the water starts lapping at the Mezzanine deck, because that's when the panic sets in and the company starts prematurely pulling the trigger.
Yeah, right.
Our kids turned teen age and that was the end of movies. It is a YouTube universe for them now.
And Netflix loves to send their version of the DVD that has all the cool extras stripped out.
Got any citations for this generational shift? None of the kids I know do that, they all want huge honking flat panels. On the other hand, I do most of my watching on my 4 inch Droid smartphone or 7 inch Samsung tablet. And I'm closer to 60 than 50.
From what I remember you could not load these machines with DVDs you got from a store. Since they were to be used in rentals, you has to use ones blessed by the studios even if they were the exact same. Mostly this was due to the price being much higher ($65 compared to $15) because it was for rentals. Not to say that using store bought discs for rentals wasn't done. The high rental cost is one reason why the rental places are having a hard time with streaming services who operate on very little profit to help their hardware sales.
One huge advantage of Redbox is the vast number of kiosks reduces their reliance on maintaining their stocks. I have 6 near where I live and if one doesn't have the movie I want, one of the other 5 will. I return it to whichever is most on convenient. I'm sure Redbox has personnel who maintain their discs but other than loading brand new releases and removing damages discs, they don't have to maintain the inventory as much.
Well, there's spam egg sausage and spam, that's not got much spam in it.
I know this is Slashdot, so it's BitTorrent, Netflix or nothing, but there is a third option that most people here don't acknowledge: Video-on-demand. Your cable company offers it, Dish & DirectTV offer it... You just push a button on your remote, pick a movie and watch it, often in HD. For many people it's video-on-demand that killed the brick and mortar rental shops. Why drive to the video store when you can just push a button?
I think that's only because they control the tablet, and their parents control the TV. I don't see people choosing a tiny screen with terrible audio when they have the means for a better experience.
A tiny screen in your hands may offer a better visual experience than the big screen TV across the room.
A few parents that I mentioned this trend to say that they see it with their younger kids, and the kids use the tablets regardless of whether the TV is in use or not.
I know some people out in a pretty rural area - ever there they can get DSL that's much faster than 56k. I don't know there are many areas left as speed limited as you are making out, much less "most of the country".
"There is more worth loving than we have strength to love." - Brian Jay Stanley
For all the fun, interesting, likable mom and pop shops that places like BB drove out of business I say --- karma baby, karma.
I watch with the same glee as Barnes & Noble (Burns Ignoble) struggles, they killed the independent bookstore, and now Amazon et. al is killing them.
'The unexamined life is not worth living' - Socrates
does it rival the BD playing in your BD player for audio/video
For most people it's very close. I have a simple 5.1 setup with a projector. For some movies on Netflix (not all) it looks very nearly as good, to where if I can watch something streaming I will rather than wait for the disc...
If streaming offered the same set of movies that the physical discs offered I probably would drop the physical disk option.
And Netflix is going to offer some 4K (Ultra HD, not the *full* 4K but still) content soon. I would absolutely rather stream that than buy a player to support some kind of physical 4K media.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Got any citations for this generational shift?
It was something offered in a presentation that I attended. Friends that I spoke to later seemed to agree. The TV being preferred by their high school aged kids, the tablets by their elementary school aged kids. I asked if this was the older kids being dominate and they didn't think so. The younger kids would use the tablets when the TV was unused and the older kids would be gone for hours (after school sports, etc). Sometimes they would be in the same room as the unused TV watching a movie on the tablet. YMMV.
They closed a lot of stores, but many still remained. Until now.
Ironically, this mirrors the situation with the UK chain which just went bankrupt for the *second* time a little over a week ago, having first gone under in January and closed a number of shops. (I assume it was a legally separate and/or spun-off business of the US parent before it first went bankrupt, as this seems to have happened independent of the troubles of the US Blockbuster).
I've no idea if any stores will remain open this time, but given that there was no obvious future for the chain when they *first* went bankrupt, it'd be surprising if it happened again.
Shame for the remaining people that worked there, but no surprise, and not a sad loss. Blockbuster entered the independent store and small chain dominated UK market at the end of the 80s (by buying the then largest rental chain), and ruthlessly exploited its US parent's size and connections to drive them almost all out of business- via predatory means- during the next decade, leaving a virtual monoculture by the turn of the millennium. From a comment on this page by Madiain28 at the time of their *first* bankruptcy earlier this year:-
This was a company owned by Viacom that is also parent company of most of the big distribution rental market. They showed no mercy in the late eighties and nineties closing thousands of independent rental shops by opening next door to them. Whilst independent shops had to pay between £30-60 per copy of film blockbuster could bulk receive from distributors virtually costing nothing just rejigging figures. They would strike a deal taking thousands of copies at a cost of about £5 then mass rent for a few weeks and sell off for more than the initial cost. Whilst the small independents struggled to buy a few copies and make any profit.
I worked part time for them when I was at college in the early nineties and there underlying ethos was to ensure they shut down any competition in the area by undercutting then as soon as they got rid of the competitor they whacked the prices up. 20 years ago they were charging £3.50 to £4 per night rental in Aberdeen once they closed Global video down.
He/she also adds:-
With the launch of Netflix and Lovefilm it was inevitable. As the market leader in the rental market they did not invest in online streaming or offer comparable deals in store as even their own online packages for post rental were far cheaper. Although I sympathise with all the staff as a company they deserve to go.
In short, nasty soulless corporate chain that monopolised the market then got so used to the nice stream of easy income and the cushion of monopoly status that they could "afford" not to respond immediately to changes in the market... so by the time things got bad enough to start affecting them it was too late for them to change. What a shame. *cough*
FWIW, the current owners (who bought it after the January bankruptcy and closure of some stores) were a private equity firm. While I might wonder why they bought the company when the chain was already clearly doomed by that point, it's well known that many private equity firms come out of these bankruptcies still having made a profit by dubious means (i.e. leaching the value out of the company and leaving the debts behind) and that may well have been the intent here, regardless of whether Blockbuster UK had a future or not.
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Oh, so sad... They pushed out so many businesses to the curb because they had the investors to backup the capitol instead of playing fair. Then they thought they could get away at charging $5-$8 per movie rental. Sure, the $1 rentals were nice but you could only do that with cheap old movies which was their way of competing against redbox and the internet. Look at me, I'm so sad! So sad that I would just about die if both Radioshack and Bestbuy would also go out of business. boohoo~
"This is all your fault!" cried the CEO at the press conference, pointing his finger at the crowd. "We asked you, begged you to rewind, but you wouldn't, you just wouldn't, I... " His voice trailed off, then his eyes rolled back as he collapsed onto the podium, then into a heap on the stage, the toppled-over mics blasting everyone's ears with feedback, then falling silent.
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Prisencolinensinainciusol. Ol Rait!
I used to like Blockbuster, until they started pestering you to sign up for stuff. And I don't mean at the checkout -- they would follow you through the store begging you to sign up for stuff. That's why I stopped going there.
They are the slow-mo collapse of an Age. The very idea of paying for content has become passe for anyone under the age of 30. My wife and I pay for Netflix because it's convenient. Everyone I know younger than us goes to the movies on Bit Torrent. Yes, that's anecdotal, but larger socioeconomic trends lend credence to personal observation.
Student loans and massive unemployment for millenials has put severe pressure on their disposable income. And it's been going on for at least 7 years. That's the formative years of the generation's early adulthood spent in penury when their predecessors have formed brand attachments and gotten started on careers making increasingly better wages. Check the news articles about how car ownership among younger cohorts is declining steeply, or how student loan default rates are rising sharply.
That means that those age cohorts are learning how to live differently than their older siblings or parents because they have to. They rent instead of own, they bike instead of drive, they torrent instead of paying. It all goes hand-in-hand, and the longer our system insists on beggaring them, the less likely they are to change even if/when conditions improve.
Of course, there's also the possibility that our system will not stop beggaring them and will move up the age cohort scale to completely beggar others too. Reverse mortgages are off to a great start to nuke the traditional wealth transfer that occurs when one generation leaves this earth to its descendents.
Do what you can, with what you have, where you are.
Apparently, here in Alaska, all of our stores will continue to stay open and operating under the Blockbuster name.
http://www.adn.com/2013/11/06/3161547/blockbuster-closes-hundreds-of.html
I keep seeing signs like this, and it makes me sad.
Probably because everything now seems to be "Guess what?!? That place you liked to go to: It's now going out of business! It will, however, be replaced by the internet.
I keep thinking about how eventually everything will be online, and there will be no need to leave your home. The robots will deliver.
It's kind of matrix like, if you think about it. Everyone in their tube, no need to leave.
I LIKE having to go out into the world to do things.
Alternatively, I wouldn't care at all if Amazon went out of business.
I realize chains like Blockbuster knocked out smaller shops earlier on, but these large chains are always the last to go, so that's probably why I get that nostalgia.
I can't even imagine this. The ergonomics are just wrong to watch on a tablet.
Their fault for being idiots and not seeing the writing on the wall when netflix and redbox showed up to not only eat their lunch, but to also kick them in the stomach and then pee on them while they lay there bleeding.
Do not look at laser with remaining good eye.
There is a public library within walking distance of the nearest Blockbuster. They rent DVDs. Of course the selection is limited. The little area for that is about 10 by 30 feet. I don't know how it compares to Blockbuster because I'm not into borrowing videos. I just walk past it on the way to other things. I suspect the library selection tends towards "classic" film and other things that they can justify as being somewhat educational; but I wouldn't bank on it. There's probably a good selection of children's stuff because moms bring their kids there all the time.
A rental place should check out (no pun intended) what the library has to offer before going into business. OTOH, Selling things to people who don't visit libraries tends to be lucrative. It's sad but true.
For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
Our kids almost never come to the living room (really it's sometimes an issue that they won't leave their rooms)
They all have a PC or laptop and a profile on our netflix account. The teen mostly uses his X box and we have an Ipad that sees heavy use by our youngest when he's not fully engaged in Minecraft.
If you think it's expensive to hire a professional to do the job, wait until you hire an amateur. --Red Adair
Hop was released in theaters just before the holiday it depicted. It was released on DVD 51 weeks later, in time for next year's holiday, and to Netflix four weeks after that. By that time, it was already past the holiday.
hey, I am 40, and see a lot of movies in my computer and in my tablet, and don't live with my parents. I mostly stream my films to the TV when I share the experience.
If you're such a massive movie watcher that you just absolutely MUST watch it on the day of video release
The problem happens when a movie studio releases a movie to theaters before a holiday, shelves it for 52 weeks to release it on DVD before the holiday next year, and waits until after the holiday to release it to Netflix and Redbox. This happened with Hop.
A more apt comparison would be to Amazon's rental feature, where I can rent a new-release HD streaming feature (with a decent selection to choose from) for the same price as I can rent it on blu-ray from Blockbuster--only sans any special features
Except lately, rental copies say something to the effect "This disc contains only the feature motion picture. To watch the special features, purchase this DVD at a retailer near you." Some don't even have subtitles, which makes it harder for people who are hard of hearing.
In the US, retail copies can be rented legally. If video rental companies are going to movie studios to get special copies, it's because it's cheaper than getting them from Amazon or whatnot, or because they want them in advance of the release date so that they can get them into their distribution chain and ready to go.
-- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
Redbox is horrible for holiday movies. These typically get released for 2 months and shelved for 10 months, after which point they're released to sell-through and premium rental stores such as Blockbuster. Redbox gets movies 28 days late, by which time the holiday has already passed. And by the next time the holiday comes around, it's no longer a new release therefore already gone from Redbox.
As a teenager I worked in a little mom and pop independent store. It was a bit of a sad story - two married retirees keeping themselves busy and above water running a local business that they loved. Until Blockbuster moved in next door and crushed them. They kept afloat for a little while by expanding into adult movies, which was against their grain. There's no moral story here...Blockbuster is a victim of their own success. They rested on their laurels on what seemed to be a secure monopoly position that was a mirage. Changing ownership/management so often did not help either - they never had a long term plan or any ability to react to the changing competitive landscape.
Just about any PC will work as a media player, just hook up to your TV.
Provided it's in the same room as your TV.
You don't need a new TV to partake of the new content.
But you may need a new PC if the family's existing PC is in a different room.
and don't necessarily want to watch programming from a home computer
They must see some sort of difference between watching a movie on a TV used as a monitor for a DVD player and watching the same movie on a TV used as a monitor for a home theater PC. What is this difference?
I keep wondering what we're going to do with all these people. That's another 2800 people that aren't needed any more. There's nothing to retrain them for, and we're not willing to spend the money anyway. These days the solution seems to let them die in the gutter or fight among themselves for scraps....
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Don't forget that when Viacom spun blockbuster off as an independent, it not only lost that special supply source, but was also given all of Viacom's corporate debts to pay off as well.
I'm too lazy to compose a creative sig.
n/t
They feared that it could be used to suppress protest or support unpopular rule.
So why don't you have to run cables from a DVD player in a different room? What's the difference between a DVD player next to the TV and a PC next to the TV?
I always find it difficult to understand the mentality of those cheering and saying good riddance that a long time business [even former giants of the industry] has failed.
Hey, it could be your workplace next.
I remember being a teenager and getting a letter from a "lawyer" from Blockbuster stating that if I didn't pay my $10 late fee they would take me to court. Now, being a teenager at the time I went ahead and paid it while at the same time resolving to never go there again, tell everyone I knew what a horrible business they were, and planning a hearty laugh at their expense when the whole house of cards finally crumbled.
Now... I laugh like a crazy person. Muwahahahaha!
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I've never liked using physical media for movies and TV series, but streaming services are just as inconvenient since I'm a neckbearded Linux user. Netflix doesn't work unless you run Firefox in WINE with Silverlight installed. Amazon Instant Video's service fades in and out from working out of the box, even though it uses a proprietary plugin that supports Linux. For me, it's way easier to fire up a torrent, let it run overnight (if the BluRay rip doesn't download in 30-45 minutes), and then watch it from my monitor, or I could also watch it from my tablet, laptop, or phone by opening it from my SMB share.
In most homes the PC is not near the TV
Then buy a second PC and put it near the TV. See AK Marc's comment about "a fanless 8"x8"x4" media server that cost under $50". This answers your "spot near the TV" and "cheap" objections. I'll take up "simple to operate" with AK Marc.
Nobody made those complaints with sound systems for TVs, but for some reason every jackass makes up unrealistic constraints.
Or perhaps the concept of buying two PCs for one household, such as a desktop PC for the desk and your console-sized media server, just hasn't crossed the mind of people like damnbunni. They also point out that unlike a PC, a DVD player defaults to a "simple to operate" 10-foot user interface that can be operated with the included television-style remote control straight out of the box.
I have no sympathy for Blockbuster Videos.
It was little known that they charged different rental rates depending upon the competition in the area. For instance if the Blockbuster were close to another video rental store they would charge the usual amount for a rental. But in areas where Blockbuster was the only rental store around they would charge up to a dollar more per rental. That is inexcusable for a national chain to price gouge like that. When confronted about it, the store charging the higher amount basically said they charge more when there is no competition nearbye.
I'm glad they went under, they got their just desserts.
Holidays happen yearly. So no problem.
But will the movie stay in Redbox for an entire year to catch the third holiday? Let me spell out the timeline more explicitly to illustrate the problem I see:
First occurrence of holiday Movie is in theaters. Second occurrence of holiday Movie is on sell-through DVD and in full-price video rental stores. Doesn't enter Redbox until 28 days after DVD release, which is weeks after the holiday. Third occurrence of holiday Movie has already expired out of Redbox due to no longer being a new release.Once Blockbuster closes, during which occurrence of the holiday and through which method is it recommended to watch such a movie?
Laptops are outselling desktops.
I thought the rise of iPad and Android tablets had caused the laptop market to slow.
So what do you do if your computer is in the other room? Go get it.
And kick the person who's using it off of it, as damnbunni mentioned.
Yes, a PC as a media player is complex, but my $50 media player is operated by my 3-year old without problem
What's the make and model so that I can buy a few Christmas presents for my family?
But how many of those laptops are gaming laptops, as opposed to homework-and-Facebook laptops with Intel integrated graphics? Since when can the end user of a laptop install a gaming video card?