Blockbuster - DEAD?

[K.C.]

Rumors of bankruptcy abound (http://www.marketwatch.com/news/story/blockbuster-shares-plunge-report-possible/story.aspx?guid={7505BD02-9EDD-441F-964F-D42CBD7DDD64}&tool=1&dist=bigcharts&symb=BBI&sid=153477)

A spokeswoman for the company has hence said they're not intending to file bankruptcy at this time, and could survive 2009, but I think it's only a matter of time.

Rental stores are dead and cost way too much to operate.

The way Netflix operates is the wave of the future. Streaming media, or if you really want the DVDs, you can get those by mail. Blockbuster tried this, but their approach was half-assed.

I could see WalMart buying out Blockbuster this year. They've tried their hand in the subscription movie business with little success so far. They'd buy them out for the subscriber base, shut down all the stores, and just incorporate the in-store rental option into their Super Stores.

[JPMNICK]

Rumors of bankruptcy abound (http://www.marketwatch.com/news/story/blockbuster-shares-plunge-report-possible/story.aspx?guid={7505BD02-9EDD-441F-964F-D42CBD7DDD64}&tool=1&dist=bigcharts&symb=BBI&sid=153477)

A spokeswoman for the company has hence said they're not intending to file bankruptcy at this time, and could survive 2009, but I think it's only a matter of time.

Rental stores are dead and cost way too much to operate.

The way Netflix operates is the wave of the future. Streaming media, or if you really want the DVDs, you can get those by mail. Blockbuster tried this, but their approach was half-assed.

I could see WalMart buying out Blockbuster this year. They've tried their hand in the subscription movie business with little success so far. They'd buy them out for the subscriber base, shut down all the stores, and just incorporate the in-store rental option into their Super Stores.

the walmart option is a strong one, it is a great way to get people who otherwise would not go into the stores there.

[NewYorkDragons80]

I'm surprised. Without following their stock or anything, it appeared as though their web rental+store rental was working out.

[boosterp]

I know Amazon does it but I thought Walmart already had an online thing.

Netflix is my best friend in a sense and they have had my business for nearly 2 years.

I wonder how much Hulu and other online services hurt them too?

[instrument]

Walmart and redbox, blockbuster wouldve been in perfect position if they had the vision of netflix, those stores couldve cut staff and been great central hubs.

[STC-Dub]

I need to keep an eye open things. Every time a company builds something near my house they start closing stores/go bankrupt. Next up, Sonic.

[K.C.]

I'm surprised. Without following their stock or anything, it appeared as though their web rental+store rental was working out.

I think they do ok in terms of number of subscribers, but running the store operations is the killer. It's got to take most of their capital to just keep the stores running, when most people have moved on to renting by mail. There's no point in the stores anymore.

Compare that with Netflix, which does everything by mail, and is a relatively low cost operation to run.

While I wouldn't be surprised if Blockbuster went Chapter 11, shut down all their stores, and reorganized as a web-based renter (or they could do this anyway in an attempt to save themselves from Chapter 11), I think it's much more likely they get bought out.

The subscriber base is potentially attractive to anyone who has interest in getting into this business.

[hexy68]

in the age of netflix...on-demand...and dvr...i don't see Blockbuster surviving too much longer...i stopped renting from Bb a couple years ago

[Freakshow]

I need to keep an eye open things. Every time a company builds something near my house they start closing stores/go bankrupt. Next up, Sonic.

I've never been to a sonic that wasn't three quarters full or more. I know people that drive over an hour just to do there. No way they are going under in the next 20 years...

[ToiletCrusher]

Then who will carry GAP for rentals?

[burrben]

dammit! i was just moving up in the company :down:

[drusilla]

wal-mart & all of the grocery stores around here have redbox. i think redbox is brilliant & we rent from there all the time. it holds a lot of movies & gets updated pretty frequency. i even like the feature where you can locate & reserve a movie ahead of time. plus it's only $1 a night around here.

[Contra]

Redbox is OK, but I don't think the selection is THAT great. We use blockbuster for their home delivery service. Its pretty much just like netflix, but you can return the movies to a store and you get a free rental for each one (I think its a limit of 5 per month). Plus as soon as they scan it returned at the counter the next movie on your list gets sent out immediately, instead of having to wait for the movie to get back to them by mail, although you can do that too.

[SatCam]

this sucks............ where will I go now to pay $5 to rent a movie?

[angrymissy]

I pre-order all my video games at Blockbuster. I didn't have to wait in line on release night for GTA4, I hope they don't go under by the time I go to pick up RE5.

[made cummsies]

in the age of netflix...on-demand...and dvr...i don't see Blockbuster surviving too much longer...i stopped renting from Bb a couple years ago
Its got to be at least 5 years since I've rented from blackbuster or any place similar. I'd never return the movies on time so get hit with a bunch of late fees, they charge too much and their staff are usually worthless piles of crap (no offense burrben ;) ). Prior to downloading everything I'd just by the movie at walmart.

IMO physical media, as a way to distribute content, is dead. Give it 2-3 years you won't be able to buy anything other then Blu-Ray, another 3-4 and that format will be toast and everything will be RTU on-demand streaming or downloaded from legit sources like i-tunes.

[PapaBear]

wal-mart & all of the grocery stores around here have redbox. i think redbox is brilliant & we rent from there all the time. it holds a lot of movies & gets updated pretty frequency. i even like the feature where you can locate & reserve a movie ahead of time. plus it's only $1 a night around here.
I just tried out Redbox for the first time tonight. It doesn't have a great selection but you can't beat the price. FREE! Just Google "Redbox codes". There's new ones every day, and Redbox is totally happy about it. I used two codes today. I was going to go for a third, but there were people behind me, and I had no idea what I wanted. I'm going to pick them at home from my comp from now on.

[Death Metal Moe]

I haven't been in a Blockbuster in years. I guess a lot of other people haven't either.

Showing up and hoping your store has a copy of what you want to see just seems so 1998.

[Doctor Z]

Hasn't Blockbuster been on the verge of bankruptcy for like a decade?

[Brad in Bama]

I haven't been in a Blockbuster in years. I guess a lot of other people haven't either.

Showing up and hoping your store has a copy of what you want to see just seems so 1998.

Ha Ha! That's probably the last time they were relevent. Netflix and services like them are the wave of the future. The streaming online and over my Xbox makes it really nice.

[The Jays]

Blockbuster deserves to go bankrupt. They are way behind in the ballgame. The DVD vending machines are beating them, Netflix kicks their ass, Amazon and Tivo kick their ass, cable destroys them... their only savior was video games, and even Gamestop kicks their ass in that... I hate having to have a membership card just to rent a video, and at such ridiculous rates.

And, how can they possibly be profitable? They have too much overhead, their stores have to have high lease fees, high electric bills, high HVAC costs, they don't offer every movie possible, which is absurd at this point...not to mention, they have too many employees, in field that has proven they could be doing more with less. Why stock shelves that people browse when they could just make a copy of a DVD if it's in high demand, there should never be the word "out of stock" when it comes to movies anymore...NEVER.

Let Blockbuster die.