Block buster

Did anyone see this article too? Redbox and Netflix for the win!!!!
Blockbuster may close up to 960 stores


The move is being made to conserve cash and get new financing as the video chain struggles against Netflix and others.



Latest Dispatches- MSN Money

ha ha wow Redbox is taking over! i got to admit i don't remember the last time i went to blockbuster, i say Redbox is the way to go! A dollar a movie, you can't beat that. Although they don't have the latest latest movies out in Redbox!!

Blockbuster to close up to 960 stores, adding kiosks that offer DVDs, games | News for Dallas, Texas | Dallas Morning News | Dallas Business News

They're simply moving towards a vending machine distribution method to take on its new competitors.

It has enduring branding, a long time customer base and relationships with movie production companies so it will do well when it replaces these 900 stores with 10'000 vending machines, thats some simple change management to combat redbox... if you can't beat them join them

I am sure they offer online downloads to take on netflix already right?

Redbox and netflix is killing them. Look at their stock, it was $27 in 2002 and now it's I think $3.

I've said for years that Redbox is going to level the playing field in the movie rental biz. Looks like it's finally happening.
Good for them; they have a great service.

I went to Hollywood Video the other night. $4.97 for a new release. I can get it for $1 at those machines. They guy said yeah but you get to keep the movie for 5 days. Shit I only need the DVD for 2 hours I told him.

I have an ax to grind with Blockbuster and I am more then happy that they are having problems. I hope they just go away. A few yrs back I took out a movie and when I returned it the next day I handed the clerk the movie and he tells me I owe another day on it. I asked why and he said you are 10 min late on retuning it. I asked him to give me a break but the pimple faced kid said he can't . I said well since I have to pay for another day let me have the movie back and I will return it tomorrow. He said he couldn't because he already put the movie back into their system . Up with Redbox and down with Blockbuster.

^looks like you have a bone to pick with the kid and not blockbuster. I bet the manager or someone higher up would beat the kid up for telling you that and give you free rentals.

All the higher execs know it's about customer service.

Blockbuster just didn't see the threat of Netflix when they should have. Netflix used to advertise through Blockbuster..., when you would rent a video, there was a little flyer on the inside of the dvd case..., They (BB) introduced a better product to it's core consumer for a quick advertising buck..., and had they not done so, it is very likely that Netflix would have taken longer to grow, and Blockbuster would have had the time needed to acclimate to the growing threat.
In other words, They took the enemy's sword and shoved it in their own belly

I went into a Hollywood Video a few days ago. Boy were the workers suprised when I told them I saw their building listed on LoopNet.
The manager kept saying that they have hundreds of movies to choose from where as red box is limited. Ofcourse, he had plenty of time to tell me the merits of his store because I was the only customer there.

I don't know for sure, but I assume many of the blockbuster locations had long term leases that are difficult to break thus making it harder to switch business models when all that space was committed to.

Once you start breaking leases, landlords go for the jugulars.

There was another Hollywood Video that went out of business just 3 miles down the road. It could be that the landlord sees the writing on the wall.

Blockbuster had a huge ego... they thought they can treat customers poorly and get away with it.

I stopped going to them years ago when I read the back of a gift card that said if you don't use it within a year they start to deduct $1.00 off each month. WHICH someone sued them and they lost.. now the gift cards don't say that.

I didn't like their late charges.. no forgiveness... they didn't always have the movie I wanted.

I still get dang Blockbuster gift cards every Christmas.. I use them to make purchases like used DVD etc. .. mostly I give them to my son who goes and buys a used video game. That's all blockbuster is good for.

When Netflix showed up on the scene.. Blockbuster should have done something to compete. I watched to see what they would do... nothing.

redbox is whats up... blockbuster??? 1900's..

Anyone studied the Blockbuster business model?

Wayne Huizenga did exactly what Robert Kiyosaki suggests in his books: Used profits from another business (waste management) to build a much larger, more profitable company.

And Huizenga KNEW that Blockbuster's days were numbered-- this was big talk in our industry about 10 years ago-- he KNEW that Blockbuster had only a few years left, and he was looking (like crazy) to find another place where he could "throw off" his Blockbuster profits to build another, different business.

He founded "Car Nation" as a way to do that.

Given what's happened w/the car markets this year, that was probably not the best move.

Still, he has a great story. Quite an entrepreneur.

-Russ H.