Blockbuster expected to file for bankruptcy this week

[Liberal_in_LA]

No rush on returning that DVD. Blockbuster Inc., once the king of the home-entertainment business, is expected to finally file for bankruptcy later this week. The chain has been shuttering stores for years as it has struggled to keep up with Netflix and Redbox and has a $900-million debt load it is struggling to pay off. Hard to believe that Viacom once paid more than $8 billion for Blockbuster. Then again, it's hard to believe I used to go there all the time and even its heyday didn't like the way the stores were run. Details on Blockbuster's late-fee issues from the Wall Street Journal

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/09/the-morning-fix-tvs-manic-monday-and-foxs-fizzling-lone-star-dc-moves-to-la-blockbuster-nears-bankru.html

[Blue_Tires]

1. sad...i have some pretty fun memories of the local video rental places

[NightWatcher]

3. in highschool I worked for a local video store, so fun. Sad to see them go

but to be honest I havent set foot in a Blockbuster in 3 years since they tried to charge my credit card for something I never rented.

Now we have Netflix and I hit the Redbox when I want a new release...the times they are a changin

[Liberal_in_LA]

11. I noticed recently at a small chain, hot video, is gone.

[phantom power]

2. Sad in a nostalgic way, but that biz model was doomed the day Netflix opened.

[Nye Bevan]

4. Years from now if I have grandchildren

I think they will be quite amused at how I used to have to go to a store and wait in line if I wanted to watch a particular movie.

[SoCalDem]

6. I remember when we got our first VCR (1979)

I would call mys husband at work and tell him to go & get VCR tapes that were on SALE for $13.99 each :rofl:

[Liberal_in_LA]

12. Donated ones are piled up at the goodwill / salvation army store

[SoCalDem]

15. we donated boxes of them:)

But I can still remember when $14 each was a bargain:)

[SoCalDem]

5. People like EASY. They don't want to drive somewhere & look for a movie

and then have to drive back to return it.

They had a pretty good run at it, but they got left in the dust.. that's the way the system works now:(

[WolverineDG]

17. Have they been sleeping for the past 6 or so years?

that's how long I've been a Netflix customer & it was in existence a few years before that. BB couldn't adapt (or I guess ran out of people to rip off for "late fees"), so buh bye.

dg

[SoCalDem]

18. Yep.. adapt or die

RIP BB..

[Greyhound]

7. Another "Nobody could've predicted" moment?

Our group approached Blockbuster in 1999 with a plan to implement what eventually became Netflix/Hulu. They literally laughed at us when we told that the technology to deliver what viewers wanted when they wanted it existed and that it was only a matter of time before their brick&mortar enterprise could not compete with it because their costs couldn't be sustained.

Of course the idiots that made those decisions are all long gone along with their million$.

[Liberal_in_LA]

13. They are frantically trying to copy the 'red box' model. They've put blockbuster boxes in 99 cent

stores. One problem with their model. 99cent stores are open 9am to 9pm. Red Boxes are inside or outside Ralphs/7-11 which are open 24 hours.

[Greyhound]

19. And they copied, and even improved on Netflix' model, but being the corporate asshats

that they are, they doomed it to failure by being too late and far too greedy.

But it is really bad for the workers who've depended on their crappy low-wage, no benefit jobs.

[cbdo2007]

8. They may still have a chance to be competitive after getting rid of their debt.

They also need to get rid of 75% of their stores...but dont' count them out completely just yet.

They just negotiated deals with the studios 6 months ago for exclusive rights on movie releases BEFORE netflix or any other competitor and just the Blockbuster name and history is worth a sh*tload of $$$.

Mainly they just need to see the future and realize that it is ALL about streaming and none about physical inventory anymore, though that's why they would still keep 25% of their stores during the transition. Also, they've already got thousands of those kiosks like Redbox ready to go out, or already implemented? So bankruptcy may actually be a good buying opportunity before the stock rebounds.

[fishwax]

10. the exclusive deal actually applies only to Netflix and Redbox, not brick and mortar competitors

The studios can't prevent anyone who owns a DVD from renting it out, but because Redbox, Netflix, and Blockbuster purchase in such high volume (and presumably get substantial discounts as a result), the studios were able to threaten their access to new titles in the volume and at the price they need to be competitive.

This "exclusivity agreement" actually helps smaller local and regional stores (those that still exist). Where I live we've got a stellar local DVD rental store and a couple very good outlets of a small regional chain. Both the local store and the regional chain have a more extensive catalog (especially the local store) and a better pricing structure than Blockbuster. And both have "Blockbuster Exclusive" new release titles available the same day that Blockbuster does.

I agree with you that it's too early to count Blockbuster out yet, though--their online presence isn't as big as Netflix and their kiosk business isn't as widespread as Redbox, but I think both are growing, and as you've said, they've got the name ...

[HopeHoops]

9. Blockbuster has RedBox kiosks in some of the stores around here. Same basic deal.

Still, I go to the store when I'm looking for something obscure - better chance of finding it.

[Liberal_in_LA]

14. Here, blockbuster boxes are in 99 cent store

[WolverineDG]

16. Guess they couldn't make that $1 they ripped me off for stretch that far huh?

I was a regular BB customer, getting videos every weekend until they attempted to extort "late fees" from me for videos they claimed I returned over a week late. I never got any notices from them, no phone calls, nothing, just one day "you owe us these late fees." I argued, so the clerk, who had a huge attitude, made a big show of "waiving" the fees, but what she really did was charge me the fees, but let me check out the videos I had selected. Not being one to read receipts right away, I didn't notice this until I got home, so I called the manager, who was incredibly rude, stating I should be "grateful" they "let" me have the videos for "free." So I asked how the difference between the "fees" & the videos I had, & he told me "$1.00." I told him to make that $1 last, because it was the last I'd ever spend at Blockbuster.

And it was. That particular location closed up shop within a year. I, for one, will not miss Blockbuster.

dg

[Liberal_in_LA]

20. I closed my BB account after a particularly egregious claim that I hadn't returned a video.

They found the video I had returned the video after days of sternly telling me I had to pay for it.

Netflix is so mellow. "you didn't get the video? We'll send you another"