Blockbuster "busted"?

[Uniquely]

"Blockbuster just disclosed to the SEC there is "substantial doubt" about its ability to continue breathing, since there are no assurances it can meet the conditions of a $250 million loan that's its current lifeline."

http://i.gizmodo.com/5201935/blockbu...n-its-deathbed


Looks like everyone who dumped Netflix because they were upset over the increase in the blu-ray surcharge might be out of luck.

[Batman1980]

I hate Blockbuster anyways so all I can say is -
http://www.youtube.com/watch?v=TX3UqY8KZpU

[krazeyeyez]

Originally Posted by robinandtami

"Blockbuster just disclosed to the SEC there is "substantial doubt" about its ability to continue breathing, since there are no assurances it can meet the conditions of a $250 million loan that's its current lifeline."

http://i.gizmodo.com/5201935/blockbu...n-its-deathbed


Looks like everyone who dumped Netflix because they were upset over the increase in the blu-ray surcharge might be out of luck.

lol what a comprehensive article, i guess if it is on gizmodo it has to be true.....

ummm i don't doubt they are financially hurting like so many other retailers in this economy, but being they are my favorite place to rent, and i would hate all those stores and jobs across the country lost not to mention a vacuum of NO COMPETITION for netflix leaving them to do anything, i would really hate to see them go the way of circuit city.

[naturephoto1]

That is very very unfortunate. Who is or may be next to fall in this economy and these uncertain times.

Rich

[fatediesel]

I just don't think a company like Blockbuster is going to be able to survive with it's huge costs for rent and employees when a company like Redbox can put a kiosk in a supermarket or McDonalds for next to nothing. If Redbox started carrying video games and Blu-rays there could be some real competition to Blockbuster and Netflix.

[krazeyeyez]

Originally Posted by fatediesel

I just don't think a company like Blockbuster is going to be able to survive with it's huge costs for rent and employees when a company like Redbox can put a kiosk in a supermarket or McDonalds for next to nothing. If Redbox started carrying video games and Blu-rays there could be some real competition to Blockbuster and Netflix.

unless they got massive machines, redbox doesn't compete for the same people as a Blockbuster or Netflix, they are a niche market, how many people wanna show off their childhood favorites to their kids, or maybe rewatch the first seasons of 24 or *shudders* grey's anatomy vending machines don't offer real competition for supermarkets carrying soda, same thing imo, i may rent from a redbox occasionally but NEVER would it replace a service like a video store or mail program like Netflix or BBO. Now i want you all to root for BB's survival so more people don't lose their jobs and MOST importantly so i don't have to rent DVD from family video, racking up huge late fee's with sub par PQ

[Josh]

If anything, Blockbuster would shed its B&M stores and become online only to compete directly with Netflix. They surely wouldn't disappear altogether.

[krazeyeyez]

Originally Posted by Josh

If anything, Blockbuster would shed its B&M stores and become online only to compete directly with Netflix. They surely wouldn't disappear altogether.

on this subject, i know BBonline and BB operate as two separate entities with some ties obviously, anyone actually know if they are established like this, as in one goes bankrupt the other still exists?

[deckardp]

They should be fine after all you people switching to Blockbuster last week after the Netflix Blu-ray rate increase.

[obiwopkenobi62]

In case anyone didn't know Blockbuster just made a deal and teamed up with Tivo.

A lot of these companies have a choice to make. Adapt or become extinct. Plain and simple.

[atomik kinder]

Originally Posted by krazeyeyez

unless they got massive machines, redbox doesn't compete for the same people as a Blockbuster or Netflix, they are a niche market, how many people wanna show off their childhood favorites to their kids, or maybe rewatch the first seasons of 24 or *shudders* grey's anatomy vending machines don't offer real competition for supermarkets carrying soda, same thing imo, i may rent from a redbox occasionally but NEVER would it replace a service like a video store or mail program like Netflix or BBO. Now i want you all to root for BB's survival so more people don't lose their jobs and MOST importantly so i don't have to rent DVD from family video, racking up huge late fee's with sub par PQ

9 out of 10 rentals from Blockbuster would be new releases, which is what Redbox has and it is only $1 a day. Also, if you notice, Blockbuster doesn't really carry everything in store, they have a pretty small selection of each genre, so finding some of those movies after a while might be tricky. (i'm talking about older movies.) Now BB online and Netflix do carry just about everything, so I would say that Redbox is no real competion for online when people are looking to rent those older titles. But, like I said, the majority of rentals comes from new releases. A few months ago, I didn't really think about renting from them, but it is quick, easy and there is one two blocks from my house. It is outside a Walgreens, so it is open 24hrs a day. They have no Blu-ray yet, they are expanding quickly and are showing up in more places every day. You can even reserve them online, which is something Blockbuster doesn't do. I think Blockbuster better watch out. More and more people I know are talking about renting there. Would you rather pay $1 per movie or $5? That is a big difference.

[krazeyeyez]

Originally Posted by atomik kinder

9 out of 10 rentals from Blockbuster would be new releases, which is what Redbox has and it is only $1 a day. Also, if you notice, Blockbuster doesn't really carry everything in store, they have a pretty small selection of each genre, so finding some of those movies after a while might be tricky. (i'm talking about older movies.) Now BB online and Netflix do carry just about everything, so I would say that Redbox is no real competion for online when people are looking to rent those older titles. But, like I said, the majority of rentals comes from new releases. A few months ago, I didn't really think about renting from them, but it is quick, easy and there is one two blocks from my house. It is outside a Walgreens, so it is open 24hrs a day. They have no Blu-ray yet, they are expanding quickly and are showing up in more places every day. You can even reserve them online, which is something Blockbuster doesn't do. I think Blockbuster better watch out. More and more people I know are talking about renting there. Would you rather pay $1 per movie or $5? That is a big difference.

i just gotta ask, how many new release titles do they have? or do they just have the popcorn blockbusters? MANY movies come out every week, how often do they update? Do they get new release tv shows on dvd? Cause those are a very popular item at my local blockbuster. How many people just rent one or two movies? Many renters don't just grab a movie, they scan the wall, "oh yah i totally forgot about that". To a niche market i am sure redbox is good enough, and sure the money saved is appealing, sounds like dvd vs. bluray to me with the cheaper and good enough arguments?

me personally as a movie fan i would prefer to pay 20-30$ for a month, have a greater selection, bluray and dvds, rent as much as i want, keep them as long as it takes to watch it. I have yet to even see a redbox and no one has answered me yet on how big these machines are and how many titles they carry, i am very curious to know

[FRAK]

I live in the Nashville area, and two of the Blockbusters just started liquidation sales. This could be the first sign.

(Before anyone asks, YES, I called them both, and NO they don't have any BDs for sell.)

[Sammy]

Doesn't redbox have a web site where you can browse and then have the video in the box for you the next day?

[krazeyeyez]

Originally Posted by Sammy

Doesn't redbox have a web site where you can browse and then have the video in the box for you the next day?

i would like to know lol? but then why not deliver it to your house? no one has explained these to me and i have yet to see one in my area.


edit: i was just checking out the site, and while that has quite a few titles, limited, but more then i expected, next to none of the titles i checked are in any machines near me, and the nearest one i would go by 2 blockbusters and probably 6 family videos to get too lol.

Does anyone know how many titles are available in one of these machines, 5,10, 30+? Do you pay per rental, or do you have to pay ahead for so many at a time? what do you do if they are scratched or damaged? I have zero familiarity with these and would like to know.

EDIT AGAIN: searching for my answers on redbox i saw a post about labels on discs, and also to my surprise netflix uses these too? I know my local retailers stopped labeling dvd's probably before dvd reached mass adoption, it was my understanding these make the discs spin off weight and can damage players!

[nick1091]

Originally Posted by krazeyeyez

To a niche market i am sure redbox is good enough, and sure the money saved is appealing, sounds like dvd vs. bluray to me with the cheaper and good enough arguments?

Um, I think you have it the other way around. I'm assuming most renters are looking for the newest releases, want to pay as little as possible for them, and if they can do their renting while they're picking up milk at the grocery store or buying Happy Meals for the kids, that's just icing on the cake. For most people I'd assume the 100 or so titles available for rent at a kiosk is more than enough options for them (and for that number I'm just going by the online inventory of the one they say is closest to me.)

It would seem like the people who don't care as much about convenience or price would be the niche market.

[OrlandoEastwood]

If Blockbuster goes under that means all them Blu's are going to be on sale and probably cheap too. I was just in there and saw that all there used BDs were $15+ tax.

[krazeyeyez]

Originally Posted by nick1091

Um, I think you have it the other way around. I'm assuming most renters are looking for the newest releases, want to pay as little as possible for them, and if they can do their renting while they're picking up milk at the grocery store or buying Happy Meals for the kids, that's just icing on the cake. For most people I'd assume the 100 or so titles available for rent at a kiosk is more than enough options for them (and for that number I'm just going by the online inventory of the one they say is closest to me.)

It would seem like the people who don't care as much about convenience or price would be the niche market.

same reason i don't buy blu-ray players at blockbuster is the same reason i don't rent movies at wallmart i am not there for that, not to say i wouldn't under the right circumstances. I know i couldn't get away with "lets go to the redbox hunny". Redbox seems at least IMO geared towards the typical non renters, as in wandering into a movie store once every few months to grab a movie for a movie night, or the over stressed over worked soccer mom, i am sure they pull others but i just cannot seem to believe that redbox is real competition for BB or let alone a mailer program.

I can see it also being appealing to a hard core collector like yourself, with 175 blu's i am guessing you don't rent as much as you buy, so i could see how a buck for the occasional test run more appealing then the cost of a store or program.

I may come around because i know i didn't think an online mailer program would ever appeal to me and it did, eventually, but as it stands now this just seems gimmicky.

More of interest to me now lol, is redbox puts labels ON the disc itself? and is it true that netflix does this too? i never heard that about netflix if they do

EDIT: also i REALLY hate the idea of so many jobs cut down to a delivery driver

[nick1091]

Originally Posted by krazeyeyez

same reason i don't buy blu-ray players at blockbuster is the same reason i don't rent movies at wallmart i am not there for that, not to say i wouldn't under the right circumstances. I know i couldn't get away with "lets go to the redbox hunny". Redbox seems at least IMO geared towards the typical non renters, as in wandering into a movie store once every few months to grab a movie for a movie night, or the over stressed over worked soccer mom, i am sure they pull others but i just cannot seem to believe that redbox is real competition for BB or let alone a mailer program.

Yeah, I mean I would think (and this is of course all conjecture on my part)
that Redbox is for the casual movie watcher who thinks "Hey, Marley & Me just came out on DVD this week, I'd like to rent that," as opposed to someone who's not sure what they're in the mood for and would spend 15 minutes perusing the Blockbuster new release wall until something appealed to them.

And I think the thing that would make a Redbox successful isn't that it would poach online or Blockbuster customers as much as it will get customers to rent who wouldn't ordinarily. Think of it like iTunes. Let's say you liked the song "Walk Like An Egyptian" by The Bangles. You might not like it enough/be bothered to go to FYE or the like to purchase the CD for $8, but if you can buy the song you want for a buck and be listening to it within minutes, you'll do it. FYE isn't hurt because you wouldn't have bought from them anyway, but iTunes makes enough from the volume of small transactions like yours to turn a profit.

I can see it also being appealing to a hard core collector like yourself, with 175 blu's i am guessing you don't rent as much as you buy, so i could see how a buck for the occasional test run more appealing then the cost of a store or program.

Actually I'm a Netflix customer, because I primarily rent DVDs which aren't available on Blu, and occasionally for the test run. Blockbuster wouldn't work for me cause the movies I tend to rent are more off-the-beaten-path fare that they don't stock in their place closest to me (though that's not BB's fault per se, just one of the downsides of a B&M store having finite space.)

[atomik kinder]

Originally Posted by krazeyeyez

same reason i don't buy blu-ray players at blockbuster is the same reason i don't rent movies at wallmart i am not there for that, not to say i wouldn't under the right circumstances. I know i couldn't get away with "lets go to the redbox hunny". Redbox seems at least IMO geared towards the typical non renters, as in wandering into a movie store once every few months to grab a movie for a movie night, or the over stressed over worked soccer mom, i am sure they pull others but i just cannot seem to believe that redbox is real competition for BB or let alone a mailer program.

I can see it also being appealing to a hard core collector like yourself, with 175 blu's i am guessing you don't rent as much as you buy, so i could see how a buck for the occasional test run more appealing then the cost of a store or program.

I may come around because i know i didn't think an online mailer program would ever appeal to me and it did, eventually, but as it stands now this just seems gimmicky.

More of interest to me now lol, is redbox puts labels ON the disc itself? and is it true that netflix does this too? i never heard that about netflix if they do

EDIT: also i REALLY hate the idea of so many jobs cut down to a delivery driver

I think you have that wrong. Typical renters rent what is new and not stuff that has been sitting around for a while. You are saying Typical renters. If you have ever worked at a video rental place (I have) people come in and rent mostly the newest things. The things that have been out for even a couple months start to get neglected. Redbox updates weekly. They have all then new 'hit" movies that people want to see. You don't seem to be a "typical" renter so I am sure you are not familiar with their patterns. And your idea of cheaper is better HD DVD VS Blu-ray doesn't hold up when you are not comparing identical products. A dvd rented at a Redbox is the same dvd you would rent at Blockbuster. In this case cheaper is better because it is the exact same thing.

I am not a typical renter. I use Netflix because they have all the stuff that I want. Blockbuster in store does not. I think people are assuming that if Blockbuster brick and mortar stores go down the online rental system will follow. Maybe, maybe not. Still when I go to Blockbuster, (not by choice, but because someone else drags me there) it is painfully obvious that they are not doing the business that they once were. One person working, no one else in the place but us, even on a Friday or Saturday night.