# Blockbuster may file for bankruptcy



## Stuart Sweet

> Blockbuster Inc. shares plunged further into penny-stock territory Wednesday after the struggling home-video-rental company said in a regulatory filing that it will likely file for bankruptcy if it's unable to address its debt load.



Full article at Marketwatch

In other news, sky is still blue. Seriously, who didn't see this coming two years ago? All I can say is, if you're a place with brick-and-mortar, "right now" access to something, you have to do a really poor job of it to have your hat handed to you by a mail-order business (like netflix.)

With Hollywood Video all but gone and Blockbuster living on borrowed time, our choices may very soon be netflix, redbox, and On Demand/PPV. You know what though? I'm probably ok with that.


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## raott

Stuart Sweet said:


> Full article at Marketwatch
> 
> In other news, sky is still blue. Seriously, who didn't see this coming two years ago? All I can say is, if you're a place with brick-and-mortar, "right now" access to something, you have to do a really poor job of it to have your hat handed to you by a mail-order business (like netflix.)
> 
> With Hollywood Video all but gone and Blockbuster living on borrowed time, our choices may very soon be netflix, redbox, and On Demand/PPV. You know what though? I'm probably ok with that.


Blockbuster has so far refused to adopt the Netflix style On Demand pricing, which cannot be helping matters and was the reason I switched from Blockbuster to Netflix.


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## bidger

Stuart Sweet said:


> With Hollywood Video all but gone and Blockbuster living on borrowed time, our choices may very soon be netflix, redbox, and On Demand/PPV. You know what though? I'm probably ok with that.


As a consumer, I'm fine with that as well. Never had a Blockbuster membership, haven't done a Hollywood rental in about a decade, Netflix offers all I need. I just feel bad that it means even more people out of work.

I do recall around this time in 2008 when BB was looking at buying Circuit City and the joke going around was the benefit would be one doomed company instead of two.


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## spartanstew

Well, I can certainly understand why people would think otherwise, but I'll miss BlockBuster.

Have been a member for years and was one of their dvd by mail beta customers at one time. It helps that there's a BB half a mile from my house and I pass by it twice a day. That's what made in-store exchanges with BB much more convenient than Netflix for me.


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## dettxw

I guess anything that happens to them won't affect me much. I literally can't remember the last time I rented a movie from them.


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## Earl Bonovich

I worked for Blockbuster during their hay-day.... Over the 5 years I worked for them, I helped opened at least 30 different stores here in the midwest. I had to travel a few times several hours.

Receiving 100s of copies of videos, and they were always gone on a Friday night.

20 years later... they are a ghost town.

Out of the 18 or so that were with-in a 20 minute drive of my home. Only two left.
And those two are maybe 1/3rd the size they used to be.

I have seen one of Blockbusters "red-box" type systems, but it is in one of our smaller independent grocery stores. Redbox is everywhere around here.

Netflix did the major damage to Blockbuster, but Redbox finished them off.

Hollywood Video is closing their last store in the area right now... I know of one mom-pop rental store left, but they specialize in foreign films.

I long since stopped visiting Blockbuster, once their pricing got way out of wack.
I did rent around Christmas time a couple video games, because I had a rent one, get one free deal... still cost me $8 for 5 days... *$8* for one video game, to rent it for a week.


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## matt

Good riddance to bad rubbish...

I dislike blockbuster. They never have anything "good", it costs 3x as much as any other rental place, and they always seem to smell like baby puke.

They just built a family video here in Stillwater. The new releases are $1. Classics are 2 for $1. Even though I have no interest and it goes against "family" in the name, they even have an adult section.  Redbox can't touch those prices, they have no line to find out they are out of the movie you want, they are friendly, and they take cash.


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## BattleZone

Blockbuster is an excellent lesson in failing (or refusing) to adapt. When NetFlix first started up, Blockbuster could/should have reacted and leveraged their might and cash and crushed NetFlix like a bug. But they failed to grasp the NetFlix model, which they could have copied and improved upon, with all of their local retail stores. They could have put all of their local stores' inventories online, and built an expanded library of mail-order-only for smaller titles, and allowed a combo of mail or walk-in rentals. But Blockbuster either didn't see the obvious threat, or refused to do anything about it.

Then, there was the second big oppertunity: instant viewing via Internet streaming. Blockbuster could have used that to regain their position, but again, they failed to see the obvious future, while NetFlix (clearly a TECHNOLOGY company) was busy licensing their clients to anyone who built a box that connects to a TV set.

You don't often get a second chance in business, but Blockbuster had 2, and failed both times. Bye bye, Blockbuster.


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## harsh

Don't assume that Netflix killed Blockbuster or Hollywood Video. Red Box had a key role in their undoing as well.

It is all about eliminating jobs to reduce overhead.


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## BattleZone

I understand RedBox's role, but Blockbuster has been on a major decline for a lot longer than Redbox has been around. Plus, Redbox doesn't have streaming clients, and that's driving a LOT of subscriptions to NetFlix right now, and a ton more in the future.


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## Earl Bonovich

harsh said:


> Don't assume that Netflix killed Blockbuster or Hollywood Video. Red Box had a key role in their undoing as well.
> 
> It is all about eliminating jobs to reduce overhead.


As noted above:


Earl Bonovich said:


> ...
> 
> Netflix did the major damage to Blockbuster, but Redbox finished them off.
> 
> ..


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## matt




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## schlar01

That is what happens when you charge $5-6 for a DVD rental and $10 for a video game. Maybe DirecTV should figure out that you aren't going to rent a whole lot of movies at that price. I can get a hell of a lot more Blu-ray rentals per month through Netflix for the same money than I can through DirecTV HD PPV.


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## Stuart Sweet

There is a blockbuster .8 miles from my house. I went in there about 18 months ago. The funny thing was, there was no one in the store except the 4 people waiting on line. Even in an empty store they still had a line.


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## sdirv

schlar01 said:


> That is what happens when you charge $5-6 for a DVD rental and $10 for a video game. Maybe DirecTV should figure out that you aren't going to rent a whole lot of movies at that price. I can get a hell of a lot more Blu-ray rentals per month through Netflix for the same money than I can through DirecTV HD PPV.


We've got a couple struggling Blockbuster stores nearby, haven't been inside one in years. I did like going to Hollywood Video when they opened a store near me but that soured as they seemed to raise prices for rentals.

Told the manager there a couple times that I couldn't see renting DVD's for more money than I could buy them for over at Wal-Mart.......

A public library (with a HUGE DVD selection) opened next door to the Hollywood video outlet, shortly the HV store closed. They couldn't compete with free....the library's "system" is very cool. I go online, search/select the movies I want. Library staff pulls them and puts them on hold for me. If the movie is at a different branch, they bring it to my branch and send me e-mail letting me know it's ready. They have new releases (CD's too), so far no Blu-Ray though.......


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## ncxcstud

I used to work at Blockbuster as well during the late 90s early 00s.

I began to see the writing on the wall once the switch to DVDs was made...reason, you can't rewind a DVD. Our store made GOBS of money because people didn't rewind their VHS tapes.

2nd instance was their crazy 'No Late Fees' deal that went on for a couple years. Rent a movie, keep it out as long as you want (as long as it wasn't more than 31 days) turn it back in for no charge? How did they see that it wouldn't lose money? Rental chains make money off late fees.

Those two instances, coupled with Netflix and Redbox have begun the cracking and jackhammering of Blockbuster's once very secure foundation.


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## deweydm

So over priced rentals from blockbuster are done for, so now they'll push over priced rentals via VOD:

http://www.nytimes.com/2010/03/18/business/media/18demand.html

It really surprises me that apparently enough people will regularly pay $3 to $6 dollars for a single 24 hour rental that they think this will fly. As long as they don't figure out a way to kill redbox and/or netflix, good luck to them, I guess.


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## gregjones

A lot of people will pay a high PPV price because they do not want to plan ahead and don't want a late fee. Is it what I do? No.

Some people get into a car and start driving before they decide where they will eat dinner. Some people decide what they want, call ahead and are seated immediately upon arrival. One is definitely more logical than the other. That doesn't mean that all people will have the forethought to do what is less expensive or greater value all the time. In short, never underestimate the number of people willing to avoid planning at considerably higher expense. As long as there are many of them on the earth, PPV will make money for all involved.

PS, It is amazing to me that many people that decry the 24-hour rule as evil will gladly accept a charge for each 24-hour period from Redbox. The amounts are different but the principle is the same. So if you're ok with one, you should be ok with the other. Then the argument is only about price per 24-hour period.


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## adamson

Ok this really sucks because Netflix after a few yrs with them suddenly stopped taking my debit card and said only credit cards can be used now. Due to problems with peoples billing problems etc. How stupid this was made me go to Blockbuster for my movies via mail. Can anyone tell me if this has changed at Netflix?? Anybody using debit?? I was not happy about this and to bat my Roku is now without Netflix...but Pandora is nice


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## sigma1914

upmichigan said:


> Ok this really sucks because Netflix after a few yrs with them suddenly stopped taking my debit card and said only credit cards can be used now. Due to problems with peoples billing problems etc. How stupid this was made me go to Blockbuster for my movies via mail. Can anyone tell me if this has changed at Netflix?? Anybody using debit?? I was not happy about this and to bat my Roku is now without Netflix...but Pandora is nice


I use my debit card as a Visa credit card with no problem.


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## Vin

ncxcstud said:


> 2nd instance was their crazy 'No Late Fees' deal that went on for a couple years. Rent a movie, keep it out as long as you want (as long as it wasn't more than 31 days) turn it back in for no charge? How did they see that it wouldn't lose money? Rental chains make money off late fees.


Along these lines, until recently they were allowing a 7 day grace period beyond the return date which meant 9 days total for new releases and 12 days for non-new releases. A couple of months ago this got even better when they increased the grace period to 10 days beyond the return date.

During my last visit (Sunday), upon checking out my non-new release DVD I was told, "due back on Friday". When I asked about the grace period I was told it not longer existed as of March 1st.

He then went on to tell me they would charge an extra $1 a day for 10 days, at which point it becomes an automatic sale (reversible if returned within 10 days of the sale).

For the record, I also use Redbox and I'm a Netflix member as well but would still use BB, mostly to use my BB Rewards Program free monthly non-new release coupon.


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## anleva

I prefer Blockbuster Online to Netflix so I'll be sorry to see them go. Since I have two Blockbuster stores within a mile of my house and can do the in store exchanges, it is a much better option for me. And the Blu-ray titles I want are usually available in-store as well. It's worked well for me.

If they do go out of business I'm off to Netflix again. After putting together a nice home theater I just can't accept the lower audio and video quality and higher prices per movie of DirecTV Cinema, no matter how convenient.


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## Guest

I didn't know this thread was here when I posted my topic about it, sorry about that. I should use the search function more often.

They have the clearance sale signs up at my local Blockbuster. I wonder if they are still going to try and go with all Kiosk's and that will save them?


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## bobnielsen

The only rentals near me are Safeway and an independent store (which has a pretty good selection). The prices of both are slightly better than Directv On Demand, not even close to Redbox, but the nearest one of those is 15 miles away. Hollywood is about the same distance and Blockbuster is even further. I'm on the Netflix 30-day free trial but haven't decided whether to keep is (good so far for both online streaming with my BD player and DVDs by mail). I understand that a lot of McDonalds have Redbox, but none in this area.


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## xmguy

I've been with Netflix since 2006. I love it. I get the basic package for $8.99. I get shows like Dallas that regular TV no longer airs in syndication. I also stream online. I was surprised a few years back when Netflix actually went DOWN in monthly costs.


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## hdtvfan0001

Ironically, the Blockbuster store located about 1.5 miles from my house continues to do near-record business. I have gotten to know the Manager over the years, and he indicated his 2010 1Q numbers are ahead of last year, and that was only slightly below his 2008 numbers (which he said were fantastic).

But obviously, the brick and mortar model has limited appeal and higher operating costs...so this does NOT come as any kind of shock.


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## bidger

Well, said manager should start updating their resume with all those stats highlighted because someone doing that will be very much in demand.


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## matt

The one here in Stillwater has changed their sign today to read that they are closing and everything must go!

I am glad to see them leave but hate that people are losing their jobs.


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## scroll

Stuart Sweet said:


> There is a blockbuster .8 miles from my house. I went in there about 18 months ago. The funny thing was, there was no one in the store except the 4 people waiting on line. Even in an empty store they still had a line.


Habits die hard.


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## Movieman

raott said:


> Blockbuster has so far refused to adopt the Netflix style On Demand pricing, which cannot be helping matters and was the reason I switched from Blockbuster to Netflix.


I think this has caused them the most issues. From what I have read they are very quick to deliver movies but their On Demand is still per rental rather than unlimited.


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## mystic7

I've only been to Blockbuster once in the past 2 years, not because of the service, or the prices, but because there's NOTHING coming out of Hollywood that captures my attention anymore. Even the 3 or so movies I've rented, like Sherlock Holmes, have me dreading about 15 minutes in that I have to invest the next two hours of my life to staying awake.

btw, if Blockbuster wants to save itself, they can start by charging a rewind fee on DVD's. We all know how stupid so much of the public is. They're bound to bring in at least a grand or two per store each month.


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## Cholly

My #1 son, with whom I now live, was a Blockbuster store manager during the nineties. He had the reputation of fixing up troubled stores, so moved around stores in Charlotte. They wanted him to become a district manager, but he didn't want to relocate and eventually quit.
Redbox and Netflix now really dominate the rental market in these parts. Hollywood Video has closed up shop and I wouldn't be too surprised to see some of the nearby Blockbuster stores close as well. I currently do all my renting on Netflix and like the ability to stream many titles to my TiVo DVR's.


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## Mikej0530

I work at Walgreens and today we were told to pull the Blockbuster Gift cards by our corporate office that they were unsellable. I'm curious to see if an announcement is getting ready to come out from Blockbuster.


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## Stuart Sweet

Hmmmm.... very interesting.


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## kss123456

It sucks, the one near me closed


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## Jtaylor1

mystic7 said:


> I've only been to Blockbuster once in the past 2 years, not because of the service, or the prices, but because there's NOTHING coming out of Hollywood that captures my attention anymore. Even the 3 or so movies I've rented, like Sherlock Holmes, have me dreading about 15 minutes in that I have to invest the next two hours of my life to staying awake.
> 
> btw, if Blockbuster wants to save itself, they can start by charging a rewind fee on DVD's. We all know how stupid so much of the public is. They're bound to bring in at least a grand or two per store each month.


Yep, it is stupid. DVDs can't be rewound.

My local movie theater, Carmike, has now raised it's movie prices to $14 a person.

My Walmart and Kroger have a Red Box.


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## Dave

Seen a Blockbuster kyak in the local .99 cent store. This is a big chain out west. Like the dollar tree stores all over. I guess the are going the Redbox route for now.


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## dpeters11

Dave said:


> Seen a Blockbuster kyak in the local .99 cent store. This is a big chain out west. Like the dollar tree stores all over. I guess the are going the Redbox route for now.


Now I have visions of a kayak with Blockbuster branding at a .99 cent store, because Blockbuster lost their paddle.

The problem with the Blockbuster kiosks is they really don't get revenue from it, just a licensing fee.


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## SamC

Classic economics. Blockbuster is the 2010 version of the proverbial "buggy whip maker". 

Rather than be sad that some strip mall landlord has to find an openning and a few kids have to look for a new minimum wage job, be happy that you (still) live in a dynamic economy where techonological advances still find their way to you, the customer.

BTW, writ large, same comment, relative to the dying newspaper business.


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## hdtvfan0001

Another long-time brand about to bite the dust....the franchise stores are not affected supposedly....but there is also little reason for them to hold on much longer either as the supply chain would be re-engineered....deterioration inevitable. All sad in a way.


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## pfp

mystic7 said:


> btw, if Blockbuster wants to save itself, they can start by charging a rewind fee on DVD's. We all know how stupid so much of the public is. They're bound to bring in at least a grand or two per store each month.


I don't recall what they called it but Hollywood Video offered something like insurance in case the disc didn't play.  It was a rather small charge per disc but the concept was absolutely ridiculous.


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## pfp

I learned recently that Blockbuster stores (not just on-line) have an all you can rent plan. Plans and pricing is set by the individual store but near me it's 2 out at a for $30. All in all not THAT bad considering there is no shipping time and blu-ray is included.

I have no idea why they don't promote these plans.


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## Christopher Gould

pfp said:


> I learned recently that Blockbuster stores (not just on-line) have an all you can rent plan. Plans and pricing is set by the individual store but near me it's 2 out at a for $30. All in all not THAT bad considering there is no shipping time and blu-ray is included.
> 
> I have no idea why they don't promote these plans.


movie gallery had an all u can rent plan in my local before it went belly up


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