Blockbuster chapter 11 ?

[SquidPuppet]

Netflix stock popped on the news.

http://mediamemo.allthingsd.com/2009...D_yahoo_ticker

[STARSCREAM]

I've been expecting them to go out for a long time now.

[ngkf7]

Who knows. Their stock did drop ~75% to $0.22. However, they insist no bankruptcy. We'll see. I personally would like to see them survive, because Netflix needs competition. While Red Box, Apple, Sony, and others provide similar services, there really are only two names that people would really rely on - Netflix and Blockbuster.

I don't use either one, so I don't care. We'll see what happens though.

[pBLU-RAYs3]

Is this a sign of further things to come?

None of my mom & pop shops have a decent blu-ray selection except Blockbusters.

[vamsilak]

They also want a piece of pie from the GOV
i saw that coming too
that offically left chase bank and food chains

[SquidPuppet]

Originally Posted by vamsilak

They also want a piece of pie from the GOV
i saw that coming too
that offically left chase bank and food chains

LOL....they are coming

[vamsilak]

Originally Posted by SquidPuppet

LOL....they are coming

Thats the Game they want to be in and for future tax credits

[jadedeath]

No big surprise here.

Video rental doesn't make any money, hasn't for awhile now.

That's why Blockbuster has been trying over and over to get other things involved {selling Blu-Ray players, trying to buy out Future Shop etc.}

Something that many people don't know is that a Video copy for rent costs about 2-3 times the cost of a regular copy to buy.

If a store can put a DVD copy on sale for $20 usually it costs about $50-$60 to get a copy in for rent due to the licensing fees associated with it.

The rental part of their business is killing them, if the only offered movies for sale and Blu-Ray players {and chips/pop/candy} they'd probably be out of this financial mess.

I mean walk into any Blockbuster and take a look at the new release wall, the 'big' title for the week usually gets in the neighborhood of 100 {or so} rentals. That's $5000, now when the average rental price for those is $5. It's going to take you renting out each copy 10 times just to break even. That doesn't leave a great deal of room for error. Especially with their dumbass new "no late fees" policy.

Someone at Blockbuster head office took a look at their financial reports and said "gee, late fees bring in $30 million annually, let's get rid of them!" Whoever that was should be drug into the street and shot.

Now, to their credit they started to sign deals with the movie companies by way of hacking the cost per title in half, but also having to share revenue with the companies themselves. IE: Get the bigger movies in for $30-$40 per copy but any profit generated on them would be split evenly with the companies. This also went for previously viewed movies last I heard.

That's just for DVD mind you. Blu-Ray's are more expensive {thus the elevated charge when you rent Blu-Ray's in-store as opposed to DVD's} I'm not sure exactly what the costs associated with Blu-Ray's are but I'm fairly sure that they're at least $10-$20 more expensive than the DVD copy for the same movie.

Logan

[paperthrower2000]

Originally Posted by jadedeath

No big surprise here.

Video rental doesn't make any money, hasn't for awhile now.

That's why Blockbuster has been trying over and over to get other things involved {selling Blu-Ray players, trying to buy out Future Shop etc.}

Something that many people don't know is that a Video copy for rent costs about 2-3 times the cost of a regular copy to buy.

If a store can put a DVD copy on sale for $20 usually it costs about $50-$60 to get a copy in for rent due to the licensing fees associated with it.

The rental part of their business is killing them, if the only offered movies for sale and Blu-Ray players {and chips/pop/candy} they'd probably be out of this financial mess.

I mean walk into any Blockbuster and take a look at the new release wall, the 'big' title for the week usually gets in the neighborhood of 100 {or so} rentals. That's $5000, now when the average rental price for those is $5. It's going to take you renting out each copy 10 times just to break even. That doesn't leave a great deal of room for error. Especially with their dumbass new "no late fees" policy.

Someone at Blockbuster head office took a look at their financial reports and said "gee, late fees bring in $30 million annually, let's get rid of them!" Whoever that was should be drug into the street and shot.

Now, to their credit they started to sign deals with the movie companies by way of hacking the cost per title in half, but also having to share revenue with the companies themselves. IE: Get the bigger movies in for $30-$40 per copy but any profit generated on them would be split evenly with the companies. This also went for previously viewed movies last I heard.

That's just for DVD mind you. Blu-Ray's are more expensive {thus the elevated charge when you rent Blu-Ray's in-store as opposed to DVD's} I'm not sure exactly what the costs associated with Blu-Ray's are but I'm fairly sure that they're at least $10-$20 more expensive than the DVD copy for the same movie.

Logan

Times, they are a changing

[krazeyeyez]

i hope they don't lol, only place around here that rents blu-rays, no late fee's is the only reason i rent at all anymore, i love all their programs including rewards and passes etc....

[mikejet]

Originally Posted by jadedeath

No big surprise here.

Video rental doesn't make any money, hasn't for awhile now.

Mom and Pop shops make tons. Reasons:

Early release(they rent out the Friday before release day)

Porn

Rentals are only for 1 night 2 at most

Most Mom and Pop shops I know do very well.

[statikcat]

Originally Posted by mikejet

Mom and Pop shops make tons. Reasons:

Early release(they rent out the Friday before release day)

Porn

Rentals are only for 1 night 2 at most

Most Mom and Pop shops I know do very well.

By Mom and Pop shops are you referring to single stores or small chains like Family Video?

[Septimus Prime]

Originally Posted by SquidPuppet

LOL....they are coming

I doubt McD's will ever be in any sort of financial trouble. If anything, this down economy would be a boon for them, since people are finding it harder not to eat there these days.

[jadedeath]

Originally Posted by mikejet

Mom and Pop shops make tons. Reasons:

Early release(they rent out the Friday before release day)

Porn

Rentals are only for 1 night 2 at most

Most Mom and Pop shops I know do very well.

Basically the reason that you are suggesting is simple, they have late fees.

It was suicide for Blockbuster to bring in the 'no late fees' policy. If the mom and pop shops break street date for their 2-5 copies of a new title, they get what? An extra rental or two before the street date? Big whoop there.

Plus, they also beat Blockbuster on price nine times out of 10. Because while they have to pay for shipping on 1-5 titles, {likely one box of 20 {or so} titles per week} Blockbuster has to pay shipping on at least 10-50 boxes per week. Add to that any shipping costs that stand up displays and such cost and you're looking at a pretty deep financial hole.

Not to mention that the mom and pop shops likely don't pay for medical benefits for their full time employees. Props to Blockbuster for that, but it's still a financial thing that is dragging them down.

End result is, if Blockbuster got rid of their rentals and focused on sales of not only movies, but games, game systems, televisions and Blu-Ray players, they'd be FAR better off than they would be if they kept their rentals.

Logan

[1Fish2FishRedFishBlu]

I would never wish this to any company in these times, however they have noone to blame but themselves. I along with so many others who were burned by them over the years won't shed a tear if this turns out to be true.

[SquidPuppet]

Originally Posted by Septimus Prime

I doubt McD's will ever be in any sort of financial trouble. If anything, this down economy would be a boon for them, since people are finding it harder not to eat there these days.

I wasnt clear. I assumed he meant (and therfore I did as well) grocers.

[jadedeath]

Originally Posted by 1Fish2FishRedFishBlu

I would never wish this to any company in these times, however they have noone to blame but themselves. I along with so many others who were burned by them over the years won't shed a tear if this turns out to be true.

I think the economy just hastened things a little bit.

This was only a matter of time, if the economy was booming right now Blockbuster would still be up that certain creek without a means of locomotion.

Logan

[Lanfear]

Originally Posted by jadedeath

I think the economy just hastened things a little bit.

This was only a matter of time, if the economy was booming right now Blockbuster would still be up that certain creek without a means of locomotion.

Logan

I agree. I'm surprised they stayed afloat this long. I can't remember the last time I actually stepped foot inside a Blockbuster. I don't have any bad experiences or anything. Just been a really, really long time.

[jadedeath]

Originally Posted by Lanfear

I agree. I'm surprised they stayed afloat this long. I can't remember the last time I actually stepped foot inside a Blockbuster. I don't have any bad experiences or anything. Just been a really, really long time.

I've been saying for a long time that rental is going the way of the dodo. And it's rental downloads that are doing the killing.

Having said that, Sale downloads are still quite a ways off.

For example, your average person would rather click on the PVR, scroll through a list of options and rent something via their cable provider. Instead of {especially here in Canada} get geared up in the dead of winter and go out to the video store and truck back. Unless the video store is 'on the way home' you'll seldom see it happen even if you live in a big city {like Toronto}

Now purchasing stuff, if they get their locations switched to malls and similar locations instead of off the beaten path as it comes to purchases, then they'll be doing something.

Logan

[Red Hood]

Originally Posted by jadedeath

Now purchasing stuff, if they get their locations switched to malls and similar locations instead of off the beaten path as it comes to purchases, then they'll be doing something.

Logan

They would be another suncoast charging outrageous prices.