Block buster

[JayKim]

Did anyone see this article too? Redbox and Netflix for the win!!!! :smxA:
Blockbuster may close up to 960 stores


The move is being made to conserve cash and get new financing as the video chain struggles against Netflix and others.



Latest Dispatches- MSN Money

 

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[Lyasota]

ha ha wow Redbox is taking over! i got to admit i don't remember the last time i went to blockbuster, i say Redbox is the way to go! A dollar a movie, you can't beat that. Although they don't have the latest latest movies out in Redbox!!

 

[maximus20895]

Redbox and netflix is killing them. Look at their stock, it was $27 in 2002 and now it's I think $3.

 

[kwerner]

I've said for years that Redbox is going to level the playing field in the movie rental biz. Looks like it's finally happening.
Good for them; they have a great service.

 

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[biophase]

I went to Hollywood Video the other night. $4.97 for a new release. I can get it for $1 at those machines. They guy said yeah but you get to keep the movie for 5 days. Shit I only need the DVD for 2 hours I told him.

 

[rocksolid]

I have an ax to grind with Blockbuster and I am more then happy that they are having problems. I hope they just go away. A few yrs back I took out a movie and when I returned it the next day I handed the clerk the movie and he tells me I owe another day on it. I asked why and he said you are 10 min late on retuning it. I asked him to give me a break but the pimple faced kid said he can't . I said well since I have to pay for another day let me have the movie back and I will return it tomorrow. He said he couldn't because he already put the movie back into their system issed:. Up with Redbox and down with Blockbuster.:fireworks:

 

[maximus20895]

^looks like you have a bone to pick with the kid and not blockbuster. I bet the manager or someone higher up would beat the kid up for telling you that and give you free rentals.

All the higher execs know it's about customer service.

 

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[RJ Amort]

Blockbuster just didn't see the threat of Netflix when they should have. Netflix used to advertise through Blockbuster..., when you would rent a video, there was a little flyer on the inside of the dvd case..., They (BB) introduced a better product to it's core consumer for a quick advertising buck..., and had they not done so, it is very likely that Netflix would have taken longer to grow, and Blockbuster would have had the time needed to acclimate to the growing threat.
In other words, They took the enemy's sword and shoved it in their own belly

 

[Sparlin]

I went into a Hollywood Video a few days ago. Boy were the workers suprised when I told them I saw their building listed on LoopNet.
The manager kept saying that they have hundreds of movies to choose from where as red box is limited. Ofcourse, he had plenty of time to tell me the merits of his store because I was the only customer there.

 

[randallg99]

I don't know for sure, but I assume many of the blockbuster locations had long term leases that are difficult to break thus making it harder to switch business models when all that space was committed to.

Once you start breaking leases, landlords go for the jugulars.

 

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[Sparlin]

There was another Hollywood Video that went out of business just 3 miles down the road. It could be that the landlord sees the writing on the wall.

 

[WildFlower]

Blockbuster had a huge ego... they thought they can treat customers poorly and get away with it.

I stopped going to them years ago when I read the back of a gift card that said if you don't use it within a year they start to deduct $1.00 off each month. WHICH someone sued them and they lost.. now the gift cards don't say that.

I didn't like their late charges.. no forgiveness... they didn't always have the movie I wanted.

I still get dang Blockbuster gift cards every Christmas.. I use them to make purchases like used DVD etc. .. mostly I give them to my son who goes and buys a used video game. That's all blockbuster is good for.

When Netflix showed up on the scene.. Blockbuster should have done something to compete. I watched to see what they would do... nothing.

 

[dennize]

redbox is whats up... blockbuster??? 1900's..

 

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[Russ H]

Anyone studied the Blockbuster business model?

Wayne Huizenga did exactly what Robert Kiyosaki suggests in his books: Used profits from another business (waste management) to build a much larger, more profitable company.

And Huizenga KNEW that Blockbuster's days were numbered-- this was big talk in our industry about 10 years ago-- he KNEW that Blockbuster had only a few years left, and he was looking (like crazy) to find another place where he could "throw off" his Blockbuster profits to build another, different business.

He founded "Car Nation" as a way to do that.

Given what's happened w/the car markets this year, that was probably not the best move.

Still, he has a great story. Quite an entrepreneur.

-Russ H.

 

[JayKim]

Blockbuster to file bankruptcy in September

http://www.msnbc.msn.com/id/38873287/ns/business-retail/

"Blockbuster also has been closing hundreds of unprofitable stores during the past two years. It still lost $65.4 million during the first three months of this year."

 

[Guest3722A]

Yeah, block buster is garbage. They're close to home but WAY over priced. I'd rather drive the extra couple miles to a family video and get 3 movies for the price of 1 at b buster and am going to check out redbox soon.

 

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[MJ DeMarco]

I use both Redbox and Netflix ... I can't remember the last time I walked into a Blockbuster ...

As I like to say, change creates opportunities and makes millionaires, but it feeds off of those who don't adjust and acclimate to the change ... movies, newspapers, stock brokers...

 

[FDJustin]

I used to actually think blockbuster owned netflix...

Actually, I wanted to comment on the giftcard thing. Ever notice a pre-paid credit card has a monthly deduction? I found a giant-tiger card from a few years ago that had the exact same sort of charge after a period of non-use. I owe giant-tiger something like $26 just for not using my card by that logic.

 

[Icy]

I actually remember some article where it mentioned that Blockbuster had exclusive deals with some major film companies for 1month rentals before other places. What I find funny is I, nor anyone I know, had any idea of this. Certainly should have pushed out this more in their advertising.

 

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[JayKim]

Dish Network buying Blockbuster’s assets for 230 million. Viacom once paid $8.4 billion for blockbuster.

Snoozing And Losing: A Blockbuster Failure

"Microsoft, Google, Apple, etc. All of these guys may seem unbeatable. If they’re investing resources into a space, you might as well not even try, right? But that’s exactly what Reed Hastings did in 1998 when he started Netflix. He was simply a disgruntled Blockbuster customers who was sick of the ridiculous late fees and thought he could do better with a new approach to movie rentals.

Blockbuster undoubtedly laughed at Netflix at the time. In fact, two years later, Blockbuster could have bought Netflix for just $50 million — quite literally pocket change for a company that had held a $5 billion IPO the year prior. Blockbuster refused all such offers, as Fast Company’s excellent rundown of the best Blockbuster gaffes reminds us."

Instead, Blockbuster put a huge investment into Enron (their broadband services subsidiary). You can’t make this stuff up."

 

[MJ DeMarco]

He was simply a disgruntled Blockbuster customers who was sick of the ridiculous late fees and thought he could do better with a new approach to movie rentals.

Awesome Fastlane point there ... Netflix (movie rentals) wasn't new ... it was just someone PISSED OFF at the current way of doing things, and set out to do it better.