Blockbuster is d00med

Cygnus · 11-03-2007, 10:56 PM

http://crave.cnet.com/8301-1_105-9809950-1.html
It looks like the bottom has finally fallen out of Blockbuster. After numerous failed attempts at attracting new customers, the company is finally spiraling out of control.

Sad as it is, the end is near for Blockbuster, and all that pressure it has been placing on Netflix will be lifted.

And in the end, Netflix will be left standing to fight another day.

Although Blockbuster tried everything it could to create a compelling reason for us to use the service, the company could not overcome its downfall. For years, it was hated by those people who saw it as a monolithic organization that enjoyed charging exorbitant late fees and had little or no care of what the customers wanted most. So when Netflix offered an entirely new service, the dynamics of the industry was inexorably changed, and Blockbuster was left playing catch up.

According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close.

But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership.

Sorry, Jim, but I think you're out of luck.

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 And due to its size and outdated corporate culture, there really is no salvation for Blockbuster at this point.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?

Simply put, Blockbuster is doomed. And while many of us have known it for a while now, it's amazing to me that the chairman of the company admitted this in a not-so subtle way, as well.

For Blockbuster, there is currently no prospect for growth. Not only is it incapable of breaking the Netflix shell, the brick-and-mortar stores are failing, and there is little chance it will be able to capitalize on the future of movie rentals--downloading.

The way I see it, Blockbuster has two options: sell off the company as soon as possible or spend huge sums of cash on research and development and strategic partnerships with distribution companies to make downloading movies a viable alternative to Netflix.

But unfortunately, I simply don't see this happening. I think Blockbuster will try to stay the course in the hopes it can find a way out. It won't.

I'll give it two years before this company goes under.

HD VHS · 11-03-2007, 11:15 PM

Quote:

Originally Posted by Cygnus

http://crave.cnet.com/8301-1_105-9809950-1.html
It looks like the bottom has finally fallen out of Blockbuster. After numerous failed attempts at attracting new customers, the company is finally spiraling out of control.

Sad as it is, the end is near for Blockbuster, and all that pressure it has been placing on Netflix will be lifted.

And in the end, Netflix will be left standing to fight another day.

Although Blockbuster tried everything it could to create a compelling reason for us to use the service, the company could not overcome its downfall. For years, it was hated by those people who saw it as a monolithic organization that enjoyed charging exorbitant late fees and had little or no care of what the customers wanted most. So when Netflix offered an entirely new service, the dynamics of the industry was inexorably changed, and Blockbuster was left playing catch up.

According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close.

But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership.

Sorry, Jim, but I think you're out of luck.

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?

Simply put, Blockbuster is doomed. And while many of us have known it for a while now, it's amazing to me that the chairman of the company admitted this in a not-so subtle way, as well.

For Blockbuster, there is currently no prospect for growth. Not only is it incapable of breaking the Netflix shell, the brick-and-mortar stores are failing, and there is little chance it will be able to capitalize on the future of movie rentals--downloading.

The way I see it, Blockbuster has two options: sell off the company as soon as possible or spend huge sums of cash on research and development and strategic partnerships with distribution companies to make downloading movies a viable alternative to Netflix.

But unfortunately, I simply don't see this happening. I think Blockbuster will try to stay the course in the hopes it can find a way out. It won't.

I'll give it two years before this company goes under.

Good.

hippy fascist · 11-03-2007, 11:21 PM

come on man... seriously.

We're talking about the death of the B&M rental store as we know it.

Once blockbuster goes the others will follow

also, we're talking about a few hundred thousand people losing there jobs here

meant2live4him · 11-03-2007, 11:22 PM

around here we have "Family Video".....I worked there for like 2 weeks and pretty much I learned that they wanted to do nothing but put Blockbuster out of business.....they offered free rentals if you turned over your blockbuster card for them to cut up...but stopped because they found out you could just go to blockbuster and print another.....Blockbuster has been WAYYYYYYY overpricing for a VERY long time and they are getting what they deserve.

crazyal · 11-03-2007, 11:24 PM

I stopped renting from them when they first came to town. Turns out they didn't like X-rated movies (no big deal) but they also censored r-rated movies, no thanks. Even my one Blu friend switched to Netflix. They had nothing in store while Netflix ships from only 50 miles away so it's overnight. It's funny, companies who think they know what's best for their customers usually fail.

Type A · 11-03-2007, 11:30 PM

I wont miss them. However, I wonder if Netflix is really a better alternative? Ive never subscribed, but Ive heard horror stories of disks looking like theyve been through a meat grinder, and unusually active customers being unfairly throttled back in shipments...are those still issues with netflix?

Cygnus · 11-03-2007, 11:46 PM

True. Netflix is not perfect. I have been a victim of their throttling. But I understand, since I can be a heavy renter during the winter months. I will re-subscribe soon esp since they allow you to download movies to laptop so I can watch some remotely. BTW, I understand why they throttle, since they pay the shipping cost. Now if only they would add game rentals...

Stew4HD · 11-03-2007, 11:46 PM

Blockbuster ruined the old, friendly Mom and Pop video stores. I miss them, maybe they can make a comeback.

**bruceames** · 11-03-2007, 11:55 PM

I've always hated Blockbuster and hope they get what's coming to them. Maybe they and Blu-ray can coordinate so that they go down together.

360kid · 11-04-2007, 12:23 AM

Good, I hope they crumble. The only company I hate worse than Block Buster is Verizon. Block Buster is satans spawn in the form of a rental store. Block Buster's ad should read:

"Come to Block Buster, where it takes you 5 minutes to find a movie, 25 minutes just to check out, and it's $7 a rental."

There's 20 people in line, 8 employees, and only 1 person working the register. Block Buster is a boil on any community and it needs to be removed.

HD VHS · 11-04-2007, 04:50 AM

Quote:

Originally Posted by bruceames

I've always hated Blockbuster and hope they get what's coming to them. Maybe they and Blu-ray can coordinate so that they go down together.

Hey bruce a lil off topic, but what you think about Warner coming to HD DVD? In your honest opinion, you think its more likely then a Bluray switch? Don't Toshy and MS have a strong tie with Warner?

pearl-drum-man · 11-04-2007, 05:49 AM

Quote:

Originally Posted by Type A

I wont miss them. However, I wonder if Netflix is really a better alternative? Ive never subscribed, but Ive heard horror stories of disks looking like theyve been through a meat grinder, and unusually active customers being unfairly throttled back in shipments...are those still issues with netflix?

It is true that the discs frequently look awful, but I've only had playback issues on a couple of occasions. As for the throttling, not that I have noticed, I average 1-2 movies/week though, probably not on the high end of the spectrum. For me, Netflix is great, as it is completely flexible, and the selection is unmatched. I have dozens of movies, documentaries, and music dvds in my queue I would never see anywhere locally, and the ability to get HD is a major plus.

tcarcio · 11-04-2007, 07:01 AM

Quote:

Originally Posted by 360kid

Good, I hope they crumble. The only company I hate worse than Block Buster is Verizon. Block Buster is satans spawn in the form of a rental store. Block Buster's ad should read:

"Come to Block Buster, where it takes you 5 minutes to find a movie, 25 minutes just to check out, and it's $7 a rental."

There's 20 people in line, 8 employees, and only 1 person working the register. Block Buster is a boil on any community and it needs to be removed.

C'mon Kid tell us how you really feel.

I cancelled my membership yesterday so I will be checking out netflix.

Super XP · 11-04-2007, 07:09 AM

Quote:

Originally Posted by HD VHS

Good.

Thats what Blockbuster gets from limiting their customers by not carrying a full line of HD DVD`s.
IMO, they got the Blu-Bug, and that is deadly

On a more serious note, many people will lose their jobs.

Bravestime · 11-04-2007, 09:09 AM

What is throttling?

I stop going to BB years ago due to the pricing, late fees and the difficulty to find new releases. Started going to Movie Gallery and got 5 day rentals on all movies and found new releases much easier. They also gave a membeship card that you can pay with. This card can be charged up to $75.00 and only cost you $60.00.

I recently switched to Netflix after purchasing my HD players and love this service, so far. I've had a issue with one combo disk (Knocked Up) playing, or not playing. All other disk have been very clean and played nicely. I have a 2 maybe 3 day turnaround on disks.

Very happy with Netflix.

11-03-2007, 10:56 PM	#1
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,766	Blockbuster is d00med http://crave.cnet.com/8301-1_105-9809950-1.html It looks like the bottom has finally fallen out of Blockbuster. After numerous failed attempts at attracting new customers, the company is finally spiraling out of control. Sad as it is, the end is near for Blockbuster, and all that pressure it has been placing on Netflix will be lifted. And in the end, Netflix will be left standing to fight another day. Although Blockbuster tried everything it could to create a compelling reason for us to use the service, the company could not overcome its downfall. For years, it was hated by those people who saw it as a monolithic organization that enjoyed charging exorbitant late fees and had little or no care of what the customers wanted most. So when Netflix offered an entirely new service, the dynamics of the industry was inexorably changed, and Blockbuster was left playing catch up. According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close. But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership. Sorry, Jim, but I think you're out of luck. 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? Simply put, Blockbuster is doomed. And while many of us have known it for a while now, it's amazing to me that the chairman of the company admitted this in a not-so subtle way, as well. For Blockbuster, there is currently no prospect for growth. Not only is it incapable of breaking the Netflix shell, the brick-and-mortar stores are failing, and there is little chance it will be able to capitalize on the future of movie rentals--downloading. The way I see it, Blockbuster has two options: sell off the company as soon as possible or spend huge sums of cash on research and development and strategic partnerships with distribution companies to make downloading movies a viable alternative to Netflix. But unfortunately, I simply don't see this happening. I think Blockbuster will try to stay the course in the hopes it can find a way out. It won't. I'll give it two years before this company goes under. __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

11-03-2007, 11:30 PM	#6
Type A 1080 Optical Supporter Join Date: Aug 2006 Location: Panama City, Fl Age: 38 Posts: 2,724	I wont miss them. However, I wonder if Netflix is really a better alternative? Ive never subscribed, but Ive heard horror stories of disks looking like theyve been through a meat grinder, and unusually active customers being unfairly throttled back in shipments...are those still issues with netflix? __________________ Mitsubishi HC3000U HD projector Dual Optoma 106" screens Harman Kardon AVR-7000 receiver Bose 901 VI, 301 IV, VCS 10 Bose AM-6 Series III Sony STR-DG600 receiver JVC GR-HD1 HD camcorder Xbox 360 Pro / PS3 40 Gig HD DVD 0 / Blu Ray 15 Games 18 / Games 2 Gateway 901x HTPC (modified) Sling Box Pro w/HD Connect Cable Dish 211 receiver w/Absolute HD pack HP Pavilion dv-6000 laptop (HTPC2GO) Link-Theater Gallery - 100,000+ views Link-55 Restoration Updated 6/21/08

11-03-2007, 11:46 PM	#7
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,766	True. Netflix is not perfect. I have been a victim of their throttling. But I understand, since I can be a heavy renter during the winter months. I will re-subscribe soon esp since they allow you to download movies to laptop so I can watch some remotely. BTW, I understand why they throttle, since they pay the shipping cost. Now if only they would add game rentals... __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3 Last edited by Cygnus; 11-03-2007 at 11:50 PM.

11-03-2007, 11:46 PM	#8
Stew4HD High Definition is the definition of life. Join Date: Dec 2006 Posts: 9,067	Blockbuster ruined the old, friendly Mom and Pop video stores. I miss them, maybe they can make a comeback. __________________ ___________________________________

11-04-2007, 12:23 AM	#10
360kid Life Is Expensive Join Date: Apr 2006 Posts: 838	Good, I hope they crumble. The only company I hate worse than Block Buster is Verizon. Block Buster is satans spawn in the form of a rental store. Block Buster's ad should read: "Come to Block Buster, where it takes you 5 minutes to find a movie, 25 minutes just to check out, and it's $7 a rental." There's 20 people in line, 8 employees, and only 1 person working the register. Block Buster is a boil on any community and it needs to be removed. __________________ Hitachi 50" Plasma 1080HD Sharp 32" LCD Toshiba HD-A2 Playstation 3 Xbox 360 Pioneer HTiB Directv HD

11-03-2007, 11:21 PM	#3
hippy fascist Illusions Michael! Join Date: Sep 2007 Location: Cambridge, UK Posts: 694	come on man... seriously. We're talking about the death of the B&M rental store as we know it. Once blockbuster goes the others will follow also, we're talking about a few hundred thousand people losing there jobs here

11-03-2007, 11:22 PM	#4
meant2live4him High Definition is the definition of life. Join Date: Jul 2007 Location: Orlando, FL Posts: 265	around here we have "Family Video".....I worked there for like 2 weeks and pretty much I learned that they wanted to do nothing but put Blockbuster out of business.....they offered free rentals if you turned over your blockbuster card for them to cut up...but stopped because they found out you could just go to blockbuster and print another.....Blockbuster has been WAYYYYYYY overpricing for a VERY long time and they are getting what they deserve.

11-03-2007, 11:24 PM	#5
crazyal Smarter than the ave bear Join Date: Jan 2005 Posts: 3,305	I stopped renting from them when they first came to town. Turns out they didn't like X-rated movies (no big deal) but they also censored r-rated movies, no thanks. Even my one Blu friend switched to Netflix. They had nothing in store while Netflix ships from only 50 miles away so it's overnight. It's funny, companies who think they know what's best for their customers usually fail.

11-03-2007, 11:55 PM	#9
bruceames Moderator Join Date: May 2006 Location: San Rafael, CA Posts: 10,127	I've always hated Blockbuster and hope they get what's coming to them. Maybe they and Blu-ray can coordinate so that they go down together.

11-04-2007, 09:09 AM	#15
Bravestime Supporter of HiDef Join Date: Sep 2007 Location: Aiken, SC Age: 53 Posts: 4,414	What is throttling? I stop going to BB years ago due to the pricing, late fees and the difficulty to find new releases. Started going to Movie Gallery and got 5 day rentals on all movies and found new releases much easier. They also gave a membeship card that you can pay with. This card can be charged up to $75.00 and only cost you $60.00. I recently switched to Netflix after purchasing my HD players and love this service, so far. I've had a issue with one combo disk (Knocked Up) playing, or not playing. All other disk have been very clean and played nicely. I have a 2 maybe 3 day turnaround on disks. Very happy with Netflix. __________________ Life is Short, Watch a Movie

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