Related Sections: Home Theater
Blockbuster teetering on the edge of bankruptcy
See what happens when you cling to the past? Blockbuster might be about to go broke, unable to save itself from bankruptcy or get out from under a mountain of debt. Because of that, Blockbuster CEO Jim Keyes says he has "substantial doubt about our ability to continue as a going concern."
Way to go, Netflix. Without the burden of Blockbuster's thousands of brick-and-mortar stores, you've shown Blockbuster that people would rather walk to their mailboxes than drive to a store — twice — to watch a video. Noticing that phenomenon late in the game, Blockbuster bravely tried to play catch-up/me-too with Netflix, only to spend itself into oblivion.
Too bad. If Blockbuster really does go bust, will Netflix take advantage of the lack of competition and raise prices even further? Victory is sweet, but for whom? Certainly not for the vanquished, and maybe not for us movie buffs, either.
Reuters, via CrunchGear
By msitarzewski at 6:17 PM ON 04/07/09
Netflix has other competition. Hulu, TV.com, Boxee, Joost, AppleTV, and about 30 others. They have no time to sit idle, nor can they afford to raise their prices much at all.
By mass5791 at 8:24 PM ON 04/07/09
There is also a Red Boxes at almost every store now. Cost only a buck. Not as easy putting it in the mail but close. Blockbuster got lazy and did not adapt fast enough to change there business model when that happens you die and something new will come and take its place. Just history repeating itself with big business.
By taylor at 12:08 PM ON 04/08/09
Once again, The Onion's fiction becomes reality:
http://www.theonion.com/content/video/historic_blockbuster_store_offers
I wonder what impact DVD kiosks in grocery stores, pharmacies, etc. might have on Blockbuster's bottom line? Safeway stores in my region (Pac NW) offer $2 rentals of new releases and favorite classics right from a vending machine 5 feet from checkout. Quick, convenient, cheap.
By SniffCode.com at 4:39 PM ON 04/08/09
Mr. Keyes,
I am your new financial adviser. Here is what we will do. We'll send a request for Bailout money to congress. A substantial portion, I recommend one thrid, will be used for bonuses. The other third will be to buy Netflix and run it into the ground. The remaining third will be my pay which can be deposited into a swiss bank. In exchange for this bailout we will give the U.S. government 80% ownership of Blockbuster and the freedom to yank all Michael Moore documentaries and, for that matter, any other trouble making documentaries and movies off the shelves.
For PR purposes we will call this Bailout the "BlockBooster!"
Contact me through my website so I can tell you about that Swiss Bank.
Warm regards...
Leroid
By martinex at 4:54 AM ON 04/09/09
Blockbuster had a sweet deal with it's combination of in-store and internet rentals for basically the same price as a monthly Neflix subscription but there were 2 major problems: (1) Many Blockbuster stores refused to participate and (2) they raised their price from $17 to $24dollars a month. I switched to Netflix and never looked back. If Netflix expands their online selection, no one will ever rent a movie again.
By nataly at 12:38 PM ON 03/05/10
hii how are you?
on your cellphone!
Text DVICE to 72434
editor@dvice.com
nataly:
hii how are you?...More »