Blockbuster Will Close Up to 960 Stores

[last_texas_dem]

Source: CBS News

>>>>Blockbuster is planning to close as many as 960 stores by the end of next year. That would shrink the video rental chain by more than 20 percent as it struggles against stiff competition from Netflix and Redbox.

The store closures disclosed in documents filed Tuesday show that Blockbuster is having to cut much deeper than it anticipated to save money and keep its lenders happy.

Blockbuster now expects to close between 810 and 960 of its U.S. stores through 2010, up from the 380 to 425 stores that normally would be closed. If Blockbuster hits the high end of the new target for store closures, it will represent 22 percent of its 4,356 U.S. stores.

The Dallas-based company has closed 276 stores so far this year.>>>>

Read more: http://www.cbsnews.com/stories/2009/09/15/business/main5313438.shtml

[Love Bug]

1. Blame Netflix and Redbox for this

Not that I've ever liked Blockbuster anyway. I feel for those who are losing their jobs because of this, tho. That sucks.

[CatWoman]

2. I remember when Blockbuster chased Erol's out of town....

[depakid]

3. Yep- that was a predatory corporation if ever there was one

Drove tens of thousands of small businesses out- and did so intentionally and systematically in communities all across the nation.

Good riddance.

[WriteDown]

11. How exactly did they do that?

I remember the video stores of old. Not much to be missed.

[Nostradammit]

15. Is there no large corporation you won't defend?

Are there no right-wing policies you won't vehemently provide excuses for?

Seriously.

[WriteDown]

16. Video stores are now right-wing policy dispensories?

Boggles the mind. :crazy:

[Nostradammit]

26. In every other post of yours that I have read

you are always defending the actions of the right in some form or another.

Usually quite subtly.

Why is that?

[WriteDown]

28. So BB is the right?

Is Netflix to the right of BB? :)

[Nostradammit]

30. Putting Ma and Pa stores out of business and funneling

all the profits into the pockets of the already wealthy
is, indeed, one of the goals of the right-wing in the U.S.

I remember the video stores of old in our neighborhood and they
are greatly missed. The selection was much better and it was much
more difficult for the NSA to keep tabs on what the citizens were
watching in those days.


And yes, I am sporting a beautiful tin-foil chapeau.

[WriteDown]

31. Sorry....

Netflix can beam my selection right into my living room on demand. Not sure how much tinfoil I'd need for that. :)

[Nostradammit]

32. You have been assimilated.

[elocs]

36. Netflix streaming rules. Right now I am watching the 2nd season of "Dead Like Me".

Thousands of movies, documentaries, and tv series available to watch on my 50" plasma with just a click. I also get 3 Blu-Ray dvds to watch every week. I can also rent new release streaming videos using Amazon. Why would I ever need Blockbuster?

[knixphan]

54. Agreed -

I always seek out the independent vid rental near me, and netflix is a last resort if they don't carry what I need.

Been Blockbuster-free for 6 years.

[Trajan]

53. Misdirection ....

Strawman ....

The poster's comments have standing here ...

[edwardian]

57. Yes.

Blockbuster in particular was guilty of corporate censorship and the promotion of rightwing attitudes during the Bush years. I will bother you to do the Google search yourself.

[WriteDown]

60. Sorry...

If you don't provide links, there is nothing much to respond to. :)

[Occulus]

21. You've noticed that, too, huh?

Maybe he meant RightDown when he picked his name....

[WriteDown]

24. I still fail to see how BB is to blame...

I think I'm a Netflix guy for life now. Is that a bad thing?

[Occulus]

35. Blockbuster did to small video stores what WalMart did to small businesses.

Is that simple enough?

[WriteDown]

37. Led to Wal-flix?

:shrug:

[imdjh]

69. Yeah, but the smart ones are now head shops.

[Dr_Willie_Feelgood]

74. Other factors include...

...the replacement of VHS by DVD. Suddenly, no huge stack of tapes that need rewinding.

And when the studios/distributors dropped the price of tapes from "rental" prices ($80 to $100) each down below $30, people just bought and packratted them (from Walmart, K-Mart, Target, etc), instead of making several trips a week to the video rental at $5 (plus late charges) a pop.

Now online delivery stands to really knock out most hard-copy audio and video products, killing even the Blockbusters and Family Video stores.

(Let's not get into what pirating music has done to the old mom and pop record store)

[imdjh]

68. He's right about the neighborhood video stores, though.

They were expensive, bitchy, and had poor selection.

But that's also the reason Blockbuster hasn't seen me in a long time. Well, except for the bitchy and expensive part.

It simply has gotten to the point where Blockbuster doesn't have anything I am looking for.

[Guy Whitey Corngood]

76. No. nt

[JNelson6563]

17. Speaking for my own region

There are (were) a couple of small, regional chains. One is now gone, the other greatly scaled down and then Blockbuster blew out of town after the damage was done. I do believe Netflix and the like would've done this eventually to those Blockbuster did in but to what extent, I don't know.

Julie--reporting from northern MI

[WriteDown]

19. I'm a netflix customer...

and I'll probably never set foot in another video store. Love that service.

[JNelson6563]

46. What's not to love?

And it's all part of the evolution of that segment of the entertainment industry. Frankly I think it was absolutely brilliant of whoever came up with that system. Obviously many agree as it's wildly popular. Of course they hire people so the evolution resulting in the death of video stores isn't a complete loss of jobs, though I'd wager a net loss.

Julie

[Cal Carpenter]

20. Were they all the same?

These 'video stores of old'? Unlike Blockbuster they weren't cookie cutter. They were small, independent businesses tailored to their local communities.

But, as is the case with a lot of independent retail stores, they can't compete with the national marketing campaigns of the big chains. And so it goes...

Funny thing, though, flooding the country with stores so quickly turned out to bite them in the ass. If they are so goddamn great, why are 20% of their stores closing? It's happening to lots of big chains now.

In fact, a quick google got me this list:


* Ann Taylor (117)
* Movie Gallery (378)
* Sprint/Nextel (125)
* Ethan Allen (12)
* Dell (140)
* Friedmans (120)
* Pier 1 (25)
* Sigrid Olsen (54)
* Talbots Kids/Mens (78)
* Home Depot (15)
* Eddie Bauer (29)
* GAP (85)
* Footlocker (140)
* Bombay (all 384 stores)
* Disney (98)
* Macy's (11)
* JC Penney (scaling back)
* Loews (scaling back)
* Sharper Image (184)
* Wilson Leather (160)
* Pep Boys (31)
* Pacific Sunwear / PacSun (154 Demo stores)
* Zales (105)
* Cache (20)
* Lane Bryant (40)
* KB Toys (356)
* Dillards (26)
* Fashion Bug (100)
* CompUSA (all stores)
* Linens 'N Things (all 371 stores)
* Mervyn's (all 149 stores)
* Club Libby Lu (Saks owned) (all 78 stores)
* Steve & Barry's (all 173 stores)
* Sergio Rossi (all standalone US stores)
* Office Depot (126 stores)
* Rite Aid (181 stores)

Borders is another one, not on the list but they've been closing stores all year and laying off workers. I'm sure there are many more.

Can't help but wonder what it'll all look like in another 10 years. These omnipresent national chains are a relatively recent phenomena. Maybe it's a failed experiment. Maybe we'll see a resurgence of local stores.

Or, if we're lucky, maybe WalMart will be the only place left to shop for anything and we'll all be wearing the same clothes and watching the same 50 movies and cooking on the same cheap grill in the summer and we won't have to make any choices at all. Wouldn't that be fucking awesome?
:sarcasm:

[WriteDown]

22. I remember them in NYC......

Usually smokey joints with that little double door that cordoned off the adult section. Some were good. Some had very inconsistent selections. I never cared too much for blockbuster either. Like I said upthread, I will probably never step into another video store again since I have my Netflix membership.

[Psephos]

49. Did you complain when video stores moved in and started shutting down theaters?

When I think about it analytically, it's strange to me why anyone wants to maintain whatever slice of history they happen to occupy in perpetuity...but when I think about it emotionally, I realized I've felt similar pangs myself. :)

The forces that create and destroy businesses are ever-present, and affect big companies just as they do small companies. There was a time not long ago when Xerox, Wang, and Data General were dominant in data processing, and RCA, Philips, and Magnavox ruled home entertainment electronics.

Which companies did they displace? Who even remembers?

Meanwhile, all of the companies I just named are likely to draw a blank look and a shrug from anyone under 25. But I remember hearing just the same arguments back then about preserving jobs, protecting industry, etc., as the former titans withered and fell. As if we want our economy to depend on invalids and companies that can't compete or adapt to changing market realities.

The economy is like a forest. Trees die and crash down, fires occasionally rage and burn out the undergrowth, but new trees grow to replace the fallen giants, and the char after the fire soon gives way to green shoots.

In a healthy economy, the only constant is change. Successful adaptation to change is the soul of productivity and a rising standard of living. Those who try to freeze-frame the economy act to make us all poorer, regardless of their intentions.

my $0.02

[Nostradammit]

55. Can you draw a distinction between what you describe

and the continually shrinking group of who owns the businesses in our communities?

Is the decimation of the middle class a good thing or a bad thing?

I'm old enough to remember the days when most of the businesses one would deal with on a daily basis
were owned and operated by a member of that community.

Before the big-wigs from Dallas came in and bought everything up and pretty soon everyone's working for
some rich as fuck tycoon that no one has ever met. Before all the restaurants got every single one of
their pesticide-laden ingredients from Nobel/Sysco. Before every God damned thing we used was made in China.


I remember those days well and we would be well-served not to stray too far from them.


Blockbuster and Netflix are on the same side of the coin, in my estimation. In a healthy economy,
the ends are not sacrificed for the means.

[joeglow3]

67. The question is, what have YOU done to prevent it?

These businesses would not succeed if people did not frequent them. Myself, I LOVED the smaller video stores. When I was in college in the 1990's, I would skip by the Blockbuster next to campus and go to the smaller video stores.

That said, more people need to stand up with their dollars to help local businesses survive.

[Nostradammit]

72. Oh, I am ALL about supporting local small businesses -

We have chosen to live in a community that shares that value but the
chains are always trying to take over. Our local video store was a beloved
institution and the customer service was impeccable. They finally succumbed
and had to close several years ago but in a last act of defiance they made
sure that the public library got their entire catalog.

[depakid]

23. They purposefully chose their locations to drive out competition

and engaged in predatory pricing. Once those businesses were gone, they jacked prices up to nearly double what the independent stores charged.

[WriteDown]

27. And what about Redbox and Netflix....

Are they engaged in "predatory" pricing with Blockbuster as their target? I don't remember pricing as being the major issue with renting videos. I remember inconsistent selection and broken tapes (showing my age) being a problem though. That was in NYC though so regional experiences may vary.

[depakid]

33. What about them? They're entirely new (or renewed) delivery systems and pricing mechanisms

That's innovation- as opposed to anti-competitive (monopolistic) behavior and predatory pricing.

I know- that's par for the course with Texas corporations like Blockbuster- but those in other nations- and in other regions of the country prefer bona fide market competition and diversity.

[WriteDown]

34. Netflix is a aligned with the dreaded Microsoft...

And will likely eliminate any brick and mortar video store.

Also, it seems that redbox's 1$ DVD rentals are predatory pricing. They've basically roboticized the video store worker. :)

[depakid]

38. As another poster pointed out- Netflix is probably a transitory business model

As to vending machines- LOL- they've been around since the turn of the century, and may be able to compete on the price with video stores (or Netflix) and the convenience- but not on quality nor diversity of selection.

[WriteDown]

59. Blockbuster was the McDonald's of video stores...

Relatively consistent selection and appearance which appeals to most people like a Big Mac with Fries. That is going by the wayside though to the take-out version of video, Netflix which will probably make the video store something relegated to museums and history books.

[TommyO]

61. Rather ironic since Redbox was pioneered by McDonalds!

http://en.wikipedia.org/wiki/Redbox

Redbox Automated Retail LLC was initially funded by McDonald's Ventures, LLC, a wholly owned subsidiary of McDonald’s Corp., in which McDonald's owned 47 percent of the company with another 47 percent of redbox owned by Coinstar. In February 2009, Redbox was purchased for $175 million by Coinstar.

[WriteDown]

63. Wow!

That IS ironic!

[exboyfil]

39. Only predatory pricing if it is not a long term business model

I think it is a long term model (at least until video on demand takes over completely). I know I rent far more than I would at $3.00. The only thing Blockbuster has going for it is the ability to offer older movies for those interested in watching them immediately, and, if Netflix's online movies keeps going, even that segment will be squeezed out. Blockbuster to survive will need to go to a kiosk/shipping/online model. Brick and mortar is dead (along with the clerks inside the stores).

Any other business has an opportunity to enter the kiosk business. The barriers to entry are very low.

Read the book Free: The Future of a Radical Price. I think the ultimate price for online DVD level releases will be $1.00 (what Netflix currently charges). You can't stop the technology.

[LanternWaste]

77. I imagine we all use our own anecdotes

"I remember the video stores of old. Not much to be missed."

I imagine we all use our own anecdotes to better validate our positions. For myself, I remember the mom & pop video store a mile down from my folks place when I was in HS-- good people, good service, good selection.

[IDFbunny]

41. Blockbuster also chased out the Mom & Pops.

[DebbieCDC]

50. I remember that too

Erol's was great in my DC neighborhood until friggin blockbuster pushed its way in. Karma's a bitch on the way down isn't it?

[Blue_Tires]

62. that's a name from the past...

growing up, my family would get 10-15 movies from Erol's for the weekend...fun times...

[last_texas_dem]

7. That's basically how I feel

I hate to hear any news about further job losses, but Blockbuster is one company I have little use for. My hometown of 20,000 once had five movie rental stores; Blockbuster came in and eventually became the only game in town, despite having a fairly weak selection and not particularly competitive prices.

[WriteDown]

14. See post 11. nt

[Occulus]

25. See posts 15 and 21. n/t

[last_texas_dem]

29. Mostly, I appreciated having more options

It's not that I remember any of the vid rental stores in my town being particularly amazing, but having several did mean a much wider selection of movies (particularly older ones, as the Blockbuster in my town has the worst non-new release selection of any I've ever been in) and an increased possibility of finding a "sold out" new release if you were willing to drive to another part of town, etc. The only particular "innovation" I can remember Blockbuster bringing in was allowing customers to keep videos for longer periods of time, but the other rental places shifted their policies to compete on this front while they were still around. In terms of price and selection, Blockbuster has never impressed me that much.

[harmonicon]

18. no way, it's Blockbuster's fault all the way

It's not Netflix who made Blockbuster have a shitty selection and overcharge customers. I hope this will be good for the few really nice locally owned video rental places still in business.

[Oregone]

4. Mandate Blockbuster rentals!

Its the only way to save those jobs!

[onehandle]

5. Blockbuster has been doomed for years. Netflix and Redbox, eventually.

Physical media will be antiques to kids born very soon.

[MichaelHarris]

6. they

still had stores?

[Ian David]

8. Who cares? They don't even sell porn. n/t

[imdjh]

70. And that. "r version" of Caligula? You must be joking. It's like trying to watch

a John Waters film on broadcast TV.

[EndersDame]

9. Crappy Corporate Chain that Carries mostly Crappy Corporate movies goes under

I feel for the employees but this will be good for Vulcan and I Luv Video (two cool local Austin video rentals) who provide atmosphere and a reason to physically rent a movie

[sofa king]

10. I'll miss not finding anything I want at those stores.

Think I'm kidding? Here. Take http://en.wikipedia.org/wiki/AFI%27s_100_Years%E2%80%A6100_Movies">this little list into your local blockbuster and try to find ten of the 100 films listed.

You won't. But you'll find more Pauly Shore and Carnosaur films than you thought existed.

[Chipper Chat]

13. Not to mention 300 copies of "Cat Woman"

...

[Tempest]

47. You won't find any documentaries and few independent films at Blockbuster

That's why I went to Netflix after Blockbuster ran the mom and pop store out of business that carried documentaries and independent films.

Netflix has every documentary I've wanted to see, and I don't mean the big ones everyone talks about.

[sofa king]

66. I think that was the problem all along.

Blockbuster was always tight with the Hollywood industry, and probably had a lot to do with the direct-to-video market of truly terrible films (yes, I know that occasionally a film that's too clever also gets the D2V stake in the heart, but most of them suck right off the bat).

But stocking all that crap meant something had to go, and it's pretty obvious the list of things that had to go started with black-and-white and subtitles, anything independent, and anything nonfictional.

Part of the problem is that with any actual store, inventory costs a lot to manage and properly display, so the stuff which gets rented only a couple times a year gets tossed. But another part of the problem is that old 20% market share rule that kills businesses all the time. I don't remember exactly how it goes, but I believe the upshot is that you should aim to control 20% of your market and actually attempt to box out everyone else, because they are too costly and unpredictable to care about. It's a stupid idea, if you ask me, because any time things get tough, those business are always the ones that suffer the worst. Like now.

So apparently, Blockbuster chose the "Dude, Where's My Car" 20th percentile and stuck with them until they all got fired and ran out of money, or lost their cars, or something. Most of the rest of us caught on to their game and stopped going years ago.

[AngryOldDem]

12. They're still in business? n/t

[AtheistCrusader]

40. They had every opportunity to be part of what Netflix and others became.

But they decided on the same strategy print newspapers chose.

Working out about as well too.

[Skink]

42. Here's a cool thing to do..

while football season is on and I'm still enjoying the new DTV I've got my Netflix account on hold for two month so i'm not getting charged for it. netflix has totally got me to cease any video store rentals too. all that gas wasted for returns etc.

Anyway I'm filling the cue up every day so when it starts up again I'll have a butload of movies already ready to send and I won't have to even look at the cue for months. Plus I'll forget what the film is about which was my number one peeve with stores, I'd read the description and then feel like I'd seen the film. Pretty smart huh?

[liquid diamond]

43. I feel bad for those that are losing their jobs, but fuck

Blockbuster and their ridiculously high prices. I remember renting one movie was over $5. At Netfilx you can rent movies for a fraction of that cost. Looks like Blockbuster's greed led to its undoing.

[classics]

44. Business model is outdated.

They have simply become irrelevant.

[Libertas1776]

45. Good Riddance!!!

Charge me BS late fees will ya? Buh-Bye :nopity:

[triguy46]

48. Surprised they've held on this long. A defunct business model.

[slampoet]

51. Once again PORNOGRAPHY WINS!!!

My local mom and pop carries porn and art films that Blockbuster didn't. They have been around LONGER than Blockbuster and may survive an other few decades.

PS - In 1993 i went into a Blockbuster to rent all three Star Wars movies. BLOCKBUSTER ONLY HAD ONE OF THEM!!!! And they only had one copy of Empire.

[KurtNYC]

75. I am shocked that Blockbuster still has 960 stores

I worked for Showtime Networks when they bought Blockbuster in the 90s. Totally the wrong timing since video rental went into a long gradual decline starting then.

[mvd]

52. I use the Comcast On-Demand or would buy the DVD

Still, there's a certain nostalgia in movie rental stores.

[Dulcinea]

56. Blockbuster is still around? Who knew? eom

[Steerpike]

58. Oh my Goodness!!!!

Is not Blockbuster Too Big to Fail?!!!

[fujiyama]

64. They charge $4-5 for new releases

most of which suck anyways. If I do want to see a mainstream film that's just been released on DVD, I'll take redbox. One dollar. It's like the itunes of videos now. Cheap, easy and I don't have to deal with anyone. I've heard good things from friends with Netflix accounts. Also reasonably priced - the only thing is, you need to know what you want beforehand and there's a wait of a day or two. Though I see that some have these digital streaming accounts. Sound cool and something worth looking into.

I can't count the number of times I've walked into a BB and walked out empty handed because the selection is so bad. I've found more interesting titles at my local public library (foreign films and even independent titles). The brick and mortar video rental may be kind of fading. Oh well, industries change. There's probably a lot lower overhead and more profit with just a kiosk, mail-order, or digital on-demand type service.

[maxsolomon]

65. I blame the Public Library

you have to wait, but you can see anything you want for free.

[wuushew]

71. Ballbuster can burn in corporate hell

I will never forgive them for insisting on three forms of photo ID when I actually wanted to rent something 10 years ago. Suffice to say I was unsuccessful in opening an account with them.


Lets hurry up with the funeral. Their business model is obsolete, they are going to die anyway.

[Regret My New Name]

73. Shouldn't be much of a surprise... There are cheaper and easier methods to rent movies...

I wonder how much longer they will last. I mean, is there any real benefits to going to any store like that?