Block buster going out a business, again !

[SingSing]

Look like nobody care that BB is going out of business.

BB is bleeding to death in US because of Netflix ( and not redbox ), even its European profit can't save David Cook.

[lowellriggsiam]

They are not the only ones Video Update, Movie Gallery, Hollywood Video, Crazy Mikes Video they are all suffering from the same problem their business model doesn't work in the modern world. There isn't much space for variety and content. The future is probably in digital dowloads.

[V Bot]

Well if they hadn't stayed so greedy and kept prices at $4.00 or so for new releases, I think more people would have continued to support them. Myself included, now, Redbox is my favorite video outlet. Wish I would have thought of that one or the Snuggie (LOL). A changing of the times. Too bad for all those employees. Netflix is my second option for renting.

[Rudyard]

Just a side note, a recent story here in Australia says we are bucking the trend and retail video rental stores actually increased their profit last year.

Dont know if the delivery services are as good as yours but they are advertised but seems people still like to go into the shop and browse and pick out a movie.

[guns1inger]

I think retail works better over here (Australia) because the few mail-order rentals services are pretty poor and have a crappy range of movies if you want something other than the latest blockbuster, and broadband is so expensive or low quality that on-line delivery just isn't a worthwhile option yet.

That said, all our local Blockbuster stores went some time ago, and VideoEzy is the only game in town around our neck of the woods.

[JohnnyBob]

Blockbuster closed their movie rental store in our 17,500 population midwestern USA town last year, and the quality of their rent-by-mail service declined greatly at the same time. There used to be several movie rental stores here, now only one remains - Family Video. I expect they'll go out of business too within a year or so. I haven't noticed any Redbox outlets here.

Nobody can compete with Netflix, although they're faltering too with the movies recently released on DVD. Many of us have to wait a long time for them. It will hurt further if the post office cuts back from 6 days to 5 days a week delivery of mail, as they're threatening to do.

The online movie streaming options are generally poor video quality unless you have a fast expensive broadband connection, so I don't see that as taking over the market quickly - but maybe eventually in 10-15 years if the USA gets hotwired for optical cable everywhere.

I don't know anybody who has a Blu-Ray player although Walmart is stocking them now in several different models. Maybe they'll catch-on eventually but I'm still happy with DVDs.

[cal_tony]

I use Neflix. I've tried their streaming svc but my satellite connection is only 500kb so the pic qual was awful and I constantly had to wait for the buffer to refill. With the likelihood of updated hardwired lines in my area slim at best I'll be sticking with physical disk rentals or purchases from Amazon.

I had used Hollywood video (a subsidiary of Movie Gallery) They have been in bankruptcy for a few years now but last year it must have do or die time for them because they changed all their pricing around in an effort to bring in some quick cash. Didn't seem to work and their selection isn't what it used to be. Now their website and local store seems to be more interested in selling DVDs than renting them. Sad part about that is the local store is in the same Mall as Walmart and they're just not price competitive.

Tony

[Rudyard]

I think retail works better over here (Australia) because the few mail-order rentals services are pretty poor and have a crappy range of movies if you want something other than the latest blockbuster, and broadband is so expensive or low quality that on-line delivery just isn't a worthwhile option yet.

That said, all our local Blockbuster stores went some time ago, and VideoEzy is the only game in town around our neck of the woods.

Having never experienced the mail service of the USA companies, I cant compare but I definately agree with the expensive poor quality of our internet service.

In my area the only video store to go was the 'local' or 'mum and dad' type shop but they went out of business when we got Civic Video and Video Ezy and also there is the Network Video chain also, so I got 3 in my local area.

[orsetto]

Well if they hadn't stayed so greedy and kept prices at $4.00 or so for new releases, I think more people would have continued to support them.

Uh huh. And people wonder why stores die off? Its because we don't give a rats ass about anything but the very latest releases for 99 cents a night, and gawd forbid you actually charge us per night: we want to keep it a week for that single 99 cents. Just because it sounds like a great idea on the consumer end doesn't mean its gonna make economic sense for suppliers: a new release DVD still wholesales for $13-16, more for BluRay, and at 99 cents the title will be old hat long before breakeven. Three or four bucks for three nights is not the highway robbery people insist it is, because thats what it actually costs to run a video rental service that doesn't lose money. If you don't believe that, don't like it, and won't pay it because you think its a ripoff- don't be surprised when your disc rental sources all dry up and blow away (including RedBox, which is such a farce it has no business plan that extends past next month). That pretty much leaves NetFlix as the only source for non-Top 40 rentals, with the wait-lists and other aggravation rent-by-mail includes. Or maybe Amazon.

[V Bot]

Orsetto, guess you didn't read my full post. I also rent from Netflix, (That subscription isn't .99 per night). If you want to pay that highway robbery as so many insist, go right ahead. Wish I owned a video store near you, $13.00 rentals per night. Sometimes lower prices means more business. I would rent say 8 movies a month (Maybe More) at Redbox for 1.06 each (Tax Included) versus maybe 1 New Release at Hollywood every two or three months. Want catalog movies, Netflix. If you ever visit that farce called Redbox, they are carrying catalog titles as well as new releases. Don't like it, Don't wanna hear it, don't visit it. Anyway, that's the way it is.

[guns1inger]

I stopped renting DVDs simply because the DVD media can't stand up to the punishment metered out by Joe Moron and his inbred children who think nothing of scratching and putting fingerprints all over the discs, then returning them without telling anyone. I hate getting part way through a movie only to have it break up or stop because of damage. When I trialed our equivalent of Netflix I had similar issues from crap that was being introduced during their own packaging process. Discs arrived with crud in the envelope that was all over the playing surface.

At least Bluray is almost indestructible to rentals play after a quick wiping off of finger prints.

[edDV]

I think the US Post Office now works for Netflix. Must be their #1 customer. The turnaround has been optimized and I'm in a tough delivery area. They got down from a 4 to 2 day turnaround. About the only way this could happen is if Netflix picked up mail in the night driving 40 miles to an intermediate post office or if the PO makes a special drop.

I even get the same fast turn when they ship from the SanJose warehouse (more obscure discs).

Out of hundreds of discs, only two have been scratched (+ one shattered) but for those Netflix did a make good extra disc.

On the negative side, I do worry about bacteria on those grimy disc jackets.

[lordsmurf]

The truth isn't piracy, costs, or anything else. The issue is competition from video games, Facebook, etc. Renting movies isn't the only entertainment venue available anymore.

[Supreme2k]

I agree. In these harsh economic times, businesses cannot afford to be so narrow minded. They can't keep thinking of only other video places as their competition. Kind of like how Taco Bell had the "think outside the bun" campaign. They know that they can't just go after Del Taco. These places (Netflix, BB, etc.) need to start thinking of themselves as the entertainment business, rather than simply the disc rental business. Netflix is kind of going in the right direction with streaming content, but they may need to start offering games and (at least maybe a limited) social networking.

[lordsmurf]

The entire movie entertainment business has yet to understand (or at least acknowledge -- I'm sure it's understood in back rooms!) that its form of entertainment has become devalued. They cannot continue to offer premium salaries, and charge premium prices on the end products. The "pass it on to the consumer" days are over. People want other things too. If the movie biz wants a piece of the consumer pocketbook, then they need to price it to match the available funds. $5 rentals and $20 movies don't fit many budgets.

I have no problem paying $2.75 for movies at the local mom-and-pop, for 2-day rentals.

I detest standing outside and waiting in line to get a movie from the Redbox. I prefer to browse the store.

[MOVIEGEEK]

Even though I am a Blockbuster member I haven't been in one of their stores in years. If I were Blockbuster I would close all of the B&M stores and only have mail and kiosk services, Netflix has shown that a mail only service can succeed.

[mail2tom]

I can't say BB deserves to go under, but IMHO they were not really a consumer oriented organization.

Ever since my son forgot to return a movie he rented from BB (on my card) and I received a collection notice for an outrageous sum of money, I decided there was something wrong with the DVD rental scheme. I haven't been to a movie rental store in 10 years. If I really want a movie I'll buy it from one of the online discount DVD retailers.

My sister does the Netflix mail thing.

[cal_tony]

The truth isn't piracy, costs, or anything else. The issue is competition from video games, Facebook, etc. Renting movies isn't the only entertainment venue available anymore.

Also competition from movies that people already have. Like most, I've been buying DVDs for 10years now so I have more than enough to keep me occupied. If it wasn't for renting BRs from Netflix for movies I already have on DVD, I wouldn't be renting that many movies at all.

Tony

[handyguy]

People want tv & films when they want it & where they want it, computer, ipod, etc & for free. That kind of business model is very not profitable.

Two of our Hollywood Video closed.

[classfour]

I have a Power Play membership at Movie Gallery: $40 per month unlimited DVD and game rentals (three DVDs or up to two games and one DVD at a time). With new game releases going at $8 for five nights and new DVDs for $4.39 plus tax - I find it a bargain. If you don't like the movie or game you haven't paid 5 days rental on the thing and can get something else.

[MJA]

not going to feel sorry for them when they go 6 feet under.never going to forgive them for the extra fees they used to charge for keeping the dvd for one extra day

[budz]

^^^^Which is why I never rented DVD's from Ball Blockbusta's.....I'd go to the local mom & pop dvd shops to rent...but that was long ago....I'm a netflix user now!

[craigarta]

I never forget when I rented a movie from one BB and my wife got the same one from another one, well the discs got mixed up and they actually wanted to charge us late fees. Of course it took them a week to notify us.

I have not been back since that and the customer service really sucked and from what I have heard still does.

Guess I'm cheap, I'll go to the public library and get a movie before going to them

[lacywest]

I use to use Hollywood Video because BB had such weird return hours ... but then BB changed their return hours and I signed up for the rent 2 videos and return them as fast as you can watch them and get another 2 videos ... 30 bucks a month.

Well ... we watch so much stuff on TV ... that the videos were sitting in a drawer and not being watched and not getting the full benefit from the monthly package. So we ... my wife and I ... cancelled BB.

And now we use Netflix ... we still take forever to send the DVDs back but now we are only paying $15 a month.

Plus .... Netflix online streaming ... is not bad ... it even remembers where I stopped the movie and it resumes from there. Plus Netflix is built in to Windows 7 Media Center.

My connection speed is .... ATT DSL ... PRO ......... I cannot get ATT DSL Elite ... I live too far out on the edge of town to get it.

[classfour]

Yep, BB ended for me with the five-out-at-a-time deal for first $25, the $35 - I finally gave up. The store was across town, and more of a hassle. The kid had me going there everyday, exchanging a return DVD for a game.

Using Movie Gallery for now - oddly, it was a mom and pop store before here - before corporate. They do own Hollywood Video, and recently closed the Hollywood Video across from the BB down.....location sucked, anyway - wrong side of the big road.

[handyguy]

I got my Wii Netflix streaming disk yesterday, it's amazing & fast & wonderful picture quality. Netflix has STARZ for streaming, which has more recent stuff.

With Netflix I don't have to buy gas to go to the store.

[fritzi93]

Well, I have the BlockBuster online one-out-at-a-time-deal. It's been okay, and the account is tied to the local store so I can exchange there or just turn in a rental there, if I happen to be passing by. That means immediately they ship the next one in my queue. The Postal Service has only destroyed one so far.

I'm renting mostly older movies re-released on Blu-Ray. The latest popular crap doesn't interest me.

Hollywood Video closed their store here just months after opening it. Too bad, it was closer than the BB store.

[EDIT] If the local BB closes, I guess I'll go with NetFlix.

[sphinx99]

The truth isn't piracy, costs, or anything else. The issue is competition from video games, Facebook, etc. Renting movies isn't the only entertainment venue available anymore.

I think this is the most spot-on cause. I mean, MMRPGs are providing upwards of 40 hours a month of entertainment for $15. (In some unfortunate causes, far upwards of 40/month.) Then there are free entertainment sources (web, youtube/hulu, etc.) and lastly there's cable. I have maybe 300 channels? And that doesn't even count all the free on-demand stuff.

In all fairness, I don't get to watch movies much these days and it's entirely for lack of time - there are so many other things to do between work, friends, and dozens of types of personal entertainment all at my fingertips that it's a rare evening that I'm thinking, "hmm, I want to kill this evening to go see This Particular Movie."

I understand the need for a business model to make sense, but frankly I'm not sure I even value a movie at 99 cents anymore if that price tag comes with the inconvenience of having to (a) drive to fetch it from a store or (b) wait a few days for it and schedule its playing days in advance.

Suburbia + gas costs are another deterrent. Including wear and tear, etc., I think it costs me more to drive to the local Blockbuster to pickup / return the disc than it does to rent it.

[sum_guy]

The business model for video/game rental stores flat out doesn't work. The majority of people in the USA do have high speed connections now and most for a reasonable monthly fee. If you're renting Dvd's at a retail store for $4 dollars each, it won't take long to make up that $39 or there about for high speed dsl or cable internet hookup. When you have that, you can purchase a Roku player and stream from Netflix or Amazon the whole catalog, something it wouldn't even be possible to stock in a retail store. The retail store has to pay for heat, air conditioning, rent or buy the actual brick and mortar store, pay employees (a lot of standing around waiting for a customer to come in where I live), cleaning carpets in the store, and all the associated overhead of running this business. $4.00 a movie just isnt going to cover it especially when your comparing to Netflix and Internet streaming.

[SingSing]

The Block Buster in my town is finally closed. The Store sign is down, and the only thing left is the "We are Hiring" sign, in the window.