Blockbuster May Shut Retail Stores

[onehandle]

Source: Yahoo News

Once Goliath to Netlflix's David, Blockbuster appears on the defensive in an effort to stay relevant to movie fans and viable as a business. In a filing with the U.S. Securities and Exchange Committee Monday, Blockbuster stated it may have to permanently close its retail stores. The company recently took out a $250 million loan -- on top of its $780.9 million debt -- and does not know if it can meet the conditions of the loan.

Blockbuster said it has "substantial doubt" about continuing as a "going concern." A going concern is business jargon for the ability to continue as a functioning business that is not forced to liquidate its assets. The company operates 7400 stores globally, which spells bad news for Blockbuster employees and brick-and-mortar movie rental mavens.

Blockbuster did not fare well in a battle against DVD-by-mail powerhouse Netflix, mostly because it was late to join the innovative distribution method and invested too much time and money in other endeavors, such as a set-top box. Netflix has no retail store overhead expenses compared to Blockbuster which must keep the lights on at thousands of brick-and-mortar stores and pay retail staff.

Blockbuster is also facing competition from upstarts such as Redbox Automated Retail which operate self-serve DVD rental kiosks in retail locations such as grocery stores.

Read more: http://tech.yahoo.com/news/pcworld/20090407/tc_pcworld/blockbustermayshutretailstores_1

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No big surprise. With on-demand, set top boxes, movies by mail, and the slow introduction of Blu-Ray, I saw this coming years ago.

No more video rental stores. Mom and pop stores may last a bit longer, but this era will end.

[bluestateguy]

1. They never have the movies I want

Independent films are rare at BB and they have almost no documentaries. Netflix does.

[Ian David]

3. They don't even sell porn. n/t

[Guy Whitey Corngood]

21. I know, those dicks!!!! No pun intended. nt

[gulfcoastliberal]

27. A "friend" told me about this website (you can either rent, watch online, or buy):

Please be aware this site is not work safe! Their "main" online store (dvdempire.com) is work friendly.

check out www.adultdvdempire.com

I've bought many movies and have never had a problem. Way better than cramped back rooms at the video store!

[spinbaby]

37. My son worked for them for a little while

He took a job with dvdempire.com unaware that their primary business was porn--they somehow failed to mention it to him when he interviewed. Fortunately, he got another job offer soon and quit that gig.

[booley]

40. was he working on porn?

IF not, that might have been the reason.

[jmowreader]

45. They sell porn, just not at "Blockbuster" stores

Blockbuster likes to come into an area, find the biggest locally-owned video rental store that has a curtained-off room in the back (they prefer successful ones with multiple outlets that aren't close to existing Blockbusters) and buy it--then keep it open. They did it in Fayetteville, and they've probably done it in hundreds of other small communities. It's a win-win: the formerly-locally-owned outlet, whose management is still in place and operating as it did before the takeover, gets to buy non-porn videos through Blockbuster's distribution arm at Blockbuster's prices, and Blockbuster gets to tell Donald Wildmon, "Blockbuster does not sell porn, so GFY" with a straight face. Because it's true. There are what, four or five thousand Blockbusters? And not one porno in any of them.

[sakabatou]

17. Same here

I'm into animation and Blockbuster doesn't have the ones I want.

[ixion]

2. Blockbuster put many of the mom and pop stores out of business

maybe this will allow them to return.

[onehandle]

5. The ones that exist now could see a short term uptick, assuming that Blockbuster does leave retail.

But they will die as well sooner or later.

[Renew Deal]

20. It would be something to see if they disappeared as quickly as the mom and pop video stores.

I'll never forget how that all happened.

[Tabasco_Dave]

32. They put my local M&P store out of business

The guy who owned it was a real movie buff and he had all the cult classics,cool guy too. Then a big corporate Blockbuster opened across the street and put him out of business. So i shed no tears for that company.

[ixion]

35. Yeah, I saw many such stores fall to blockbuster

and I didn't much care for them when they were successful, because they're movie selection sucks.

Over the years, I've built up a considerable collection (around 2000 DVDs). Maybe I'll start my own 'pop' store. :)

[bitchkitty]

43. I was thinking the same thing.

I used to love my little video store, there was always something good there, and the fellows who owned it were awesome.

[SomeGuyInEagan]

52. I remember a local gas station with rentals ...

... it was a family-owned gas station, even had a mechanic on staff (rare in the '90s, even more so now). They had a great video selection and got a lot of people in the neighborhood who would just walk there. This was in a city with a BB, grocers with video departments and several independent video stores.

Times are changing.

[elocs]

4. I go to Redbox where rentals are only $1 a day.

They also have a code you can enter for a free one day rental on Mondays and Tuesdays. Blockbuster's prices are too high.

[hlthe2b]

6. I still miss music stores... I'll miss video stores as well...

:shrug:

I've watched many memorable movies I'd never even know about, simply because of the opportunity to pick up the box and read about them as a I perused the store shelves. Oh, well... Frankly, though, I think BBuster online is what is destroying the franchise. They were poorly managed and the stores (which were technically separate entities) had to bear the brunt for that.

[lucretia54]

55. Where can you?

meet and talk to other human beings, people you don't even know? At the video store, we're all there for a common purpose, and it is a great conversation starter.

One of these days we won't have to leave our houses for anything.

By the way, I look like Marilyn Monroe, but with red hair and green eyes and I'm 24 years old.....

[Hugabear]

7. Not to mention their bullshit late fees, and exhorbitant rental policies

Several years ago, I went in to rent a game for my new Xbox 360. Not only did they charge me a higher price, but they demanded a valid credit card - not merely a debit card. Since I do not carry any credit cards, and I did not want to pay their higher fees, I walked out and have not been back since. I then signed up for Gamefly, which allows you to rent 2 games at a time for a low monthly fee, just like the Netflix model.

Blockbuster's problem was clinging to an outdated concept, and not adapting to the times.

[last_texas_dem]

8. It will be sad to see employees losing their jobs if this occurs

but Blockbuster is one company I don't have much use for. Their late fee charges can be exorbitant. The selection at my local one is lousy- and there would be many more videos available to consumers had Blockbuster not been the primary cause of the five rental stores in my town shutting down. (They're the only game in town now...)

Oh yeah, they're also the only place I ever interviewed for a job and wasn't hired. I guess it's petty to hold that against them, but I can't help it! haha

[DJ13]

9. That sucks

I dont use Netflix, as I dont like to plan ahead when theres a movie I want to see, nor do I particularly trust my neighborhood as far as having $100 worth of DVD's sitting in the mailbox.

I also dont "rent" new release movies off my cable service (Comcast) as they only have them in stereo sound, not 5.1 surround (and the cable box is known to forget what we have saved to finish later).

Blockbuster was my only alternative.

[Twinguard]

10. The 'buster lost me

Their prices are just too high. I watch the sales at DVD stores, and I regularly find deals (especially around winter solstice) to buy DVDs for less than renting them at the 'buster. Combine that with movie channels and onDemand and Internet sites like hulu and IMDb, and now I feel no need to rent from them anymore.

If I am in the mood to rent a DVD, I seek out the local joints nearby.

[Haole Girl]

11. That is unfortunate

I hate to hear this because it will mean even more job losses.

[damntexdem]

12. Their block really got busted.

[Amaya]

13. good

they are way too expensive. i get unlimited online movies and dvd rentals for $14.00 a month on netflix.
blockbuster is like 4 bucks a movie! screw that.

[AngryAmish]

14. One more buggy whip maker out of business

[alcibiades_mystery]

23. Indeed

:thumbsup:

You don't need to go to a *place* to get digital products. It's an outmoded model because it is unnecessary and inconvenient.

[AngryAmish]

24. And the candy was overpriced

[lies and propaganda]

15. they are a Mormon company

who hasnt received a dime of mine since I learned that many years ago in Mormon as all get out, Tempe, Arizona.

Tell them to host a Proposition to get the money.

[auburnblu]

42. I'm with you

Religious bigotry is the "enlightened" way to go. Rock on.

[MilesColtrane]

16. What happens to those millions of credit card numbers they have on file...

...after they declare Chap. 11?

Do they delete them, or sell them off to their creditors?

[DS1]

18. They were the MTv if video rental. Only stuff that was made

in the last 5 years will be carried with more than one copy, and that's being generous.

Screw them.

[Dulcinea]

19. I didn't know anyone still went to Blockbuster.

I thought everyone had Netflix or watched PPV movies. Personally, I just wait for most movies to come to HBO.

[Ms. Toad]

31. Family Video around here

Except for new movies, rentals are either $1 for 5 nights or $.50 for five nights.

[XemaSab]

22. So do I get to keep my overdue movies?

:D

[high density]

25. I can't see how anybody would go to Blockbuster (or Redbox) regularly given Netflix's pricing

If you're renting more than one movie a month, Netflix's unlimited one DVD at a time plan is a much better value than Blockbuster. Redbox's limited selection makes me wonder how sustainable their business model is. Add Netflix's instant streaming collection and the convenience of their distribution system and I am absolutely amazed that Blockbuster gets any business at all.

[laconicsax]

28. Video stores can do what Netflix can't.

With Netflix, you can't watch a movie you don't own as a spur-of-the-moment activity unless they have it in their instant viewing catalog AND you have a computer compatible with their instant viewing service.

[DainBramaged]

30. That's why the cable companies offer pay per view

Which really started the downfall of Blockfuckers.

[joeglow3]

41. Some of us don't pay $20 a month for pay-per-view

We dropped our digital cable a couple years ago. It just was not worth $300 a year. We like to rent a movie once or twice a month and never plan it. Thus, a local video store is the best way to go for us. That said, we go to our grocery store to rent, as they are a third the price of Blockbuster.

[Born Free]

34. You forgot Tivo

Our HD-Tivo works similar to Comcast "On Demand" and we have access to anything in the Netflix "Instant" queue. I can't believe how cheap it is to really enjoy so many titles and TV shows . We have dropped all the premium movie channels that Comcast offers as Netflix has enough to offer, and all this for less than $10.00 a month. There are things I would like to see improved with Netflix and the Tivo, such as the HD-Tivo does not yet allow you to use the thumbs up or thumbs down button to rate shows on Netfix, and the HD-Tivo does not include Netflix in the search functions yet, but I am sure those normal Tivo functions will be added as time goes on.

There are other Netflix capable devices that also hook up to you tv, there is a blue ray player and the small $99.00 set top box they sell, but I have no experience using them. I prefer the HD-Tivo , as it also has other things such as Youtube, photo album sites like Picassa , Amazon movies etc. and actually they will soon be adding Blockbuster.

[Born Free]

44. Wait, I was wrong about the Tivo features...

This morning the HD-Tivo had a Netflix folder in the "Now Playing" section with my complete "Netflix Instant Queue" and when looking through my queue, I was able to rate the shows with the thumbs up and down buttons. I did not try the Tivo search, still don't know if that is set up yet to work with Netflix titles. The software must have updated overnight, maybe they got the listings updated so it shows "The Ed Show" rather than the "1600 Pennsylvania Avenue" as well.

[BlueIris]

26. Good riddance.

PPPPTHH!!!!

[fishwax]

29. I'm fortunate to have a local store that is much better than blockbuster

and netflix, for that matter (at least for my movie-watching habits). Their selection is far superior to Blockbuster's--they don't have as many copies of some of the big releases, of course, but they've got thousands of independent, smaller budget, and documentary titles that the other doesn't. And it only costs me a buck a movie for three days.

[fujiyama]

33. I like having a video rental place nearby

It's nice, on a boring Friday or Saturday evening to head to the a video place and just get something. I like online rental joints, but my rentals are often unplanned and spontaneous. I hope B&M rental places will still be around, but I'd rather mom and pop video rental shops take care of it (most of them were of course driven out of business by Blockbuster). Hopefully those shops would be stocked with something more than 500 copies of some really crappy teen comedy. What about foreign language films and documentaries?

But Blockbuster's rental prices are absolutely insane (it costed $5.50 for a new release recently!), their selection is very mediocre, and their whole late fees thing has been very deceptive. Blockbuster can go to hell as far as I'm concerned.

[sendero]

36. Blockbuster..

.... earned my undying enmity when they bought the Sound Warehouse chain and promptly told the men working there to get a haircut or lose their job. Most of who were musicians or aspiring musicians and their hair was a requirement for their real job.

Their movie selection and late policies all suck. They dug their own grave, I'll dance on it.

[Systematic Chaos]

38. I haven't touched a Blockbuster in about 15 years.

When they started sending me harassing letters and making phone calls to my house over a lousy friggin' $2 late fee that pretty much ended it. They had their games and movies back and no further late fees were accruing, and I tried to explain to the store that my job had me at a different location for a while so it would be a lengthy trip out of my way just to pay them their $2 and they still continued to bother me.

I went an hour out of my way one evening after work to pay them their $2 and told them they could stick it up their ass.

I would have to say I've been a member of about 10 different small-time chains and mom & pops which treated me far better since then, and frankly I have only been dealing with Netflix and bit torrent for the past 6 years.

[bedazzled]

39. our library has dvd's available for free -- good ones, too

i also use the automated kiosks. just returned "marley and me"
as a matter of fact.

blockbuster is WAY too expensive. they don't have any movies i
want to see, for the most part. i just feel sorry for the folks
who are losing their jobs. won't miss blockbuster as a concept...

[Cass]

46. Blockbuster is expensive and the late fees are outrageous.

We finally had enough and decided to sign up with Netflix. We are pretty pleased with them because its so convenient and is much less expensive.

Only downside to Blockbuster going under is the loss of jobs.

[JeanGrey]

48. What late fees? Our blockbuster hasn't had late fees in

simply I can't remember. We keep them for days and days.

[Cass]

49. You are lucky. Our Blockbuster charges hefty late fees.

At least they did at the time we decided to switch over to Netflix. We've been using Netflix about a year and a half now so maybe Blockbuster has changed their policy in that time.

[JeanGrey]

56. Blockbuster has had the "no late fees" program for a long time

at least a year or so.

[Cass]

57. Only corporate stores participate in the 'no late fees' program, franchises can opt out.

That's why our Blockbuster still charges late fees. I called to ask about it after reading your response and they tell me they are an individual franchise that chooses not to participate in the 'no late fees' program.

The Blockbuster website says the 'no late fees' program applies at participating stores only, btw.

http://www.blockbuster.com/help/faq/394

[JeanGrey]

47. Never cared for Netflix. Had to wait weeks and weeks to

get the movie I wanted. At least at Blockbuster you could return it to the store and get another right away.

[harpboy_ak]

50. I only tried them once, and the store is just 2 blocks away

There's a Blockbuster just 2 blocks from my house, and I've only tried it once. The store clerks were high school kids who didn't seem to care if customers found what they wanted or not, and were more interested in talking to their friends who were hanging out.

The other contacts I've had with the store "managers" have all made me want to not do business there, even though they were not related to video rentals, but to things like asking the store's snow plowing contractor to not pile snow on the sidewalk next to the parking lot, or asking whether I could put up posters for local arts performances. The "managers" didn't actually manage anything, and any request had to be approved by higher-ups somewhere else, including a request that they simply obey the law by not blocking the sidewalk. I never found an employee who seemed motivated to do anything except run the cash register.

With that lack of employee motivation, it's no wonder they're going broke.

On the rare occasion I rent a movie, I go to a local convenience store. Most of the time, I get DVDs from my local library, which has many of the PBS series on DVD, so I can see episodes I missed.

[wickerwoman]

51. One of their employees stole our account information

and checked out a bunch of movies in our name never returning them. The manager denied it, accused us of stealing the movies and then turned us over to the collection agency for the cost of the movies plus tons of bogus late fees. They caught the employee doing the same thing to someone else, which was the only way we got out of it.

Fuck Blockbuster. I never liked them since they were the first company to demand that you check your backpack in at the door before you could shop there. Treat your customers like thieves and they won't be your customers for long.

[scrinmaster]

53. I've been using Netflix for the past 2-3 years. Blockbuster just doesn't compare.

I watch maybe 20 discs per month on the 3 at a time plan, and my girlfriend watches loads of movies online through my account.

[galledgoblin]

54. idiocy, the stores are Blockbuster's advantage; the CONTRACT is the problem

I considered a Blockbuster subscription because I liked the idea of picking up a new release while waiting on my movie in the mail, which is an advantage Blockbuster has over Netflix. I nixed that idea when I read the restrictive contract and the horror stories former Blockbuster customers gave.

[sarcasmo]

58. Net Flix put the smack down on Blockbuster.

[Blandocyte]

59. To hell with them and their bricks and mortar

I love Netflix! Movies come in the mail, get sent back prepaid. Partner watches some free on her 'puter. BlockBuster. What a dinosaur.