Bye Bye Blockbuster?

[Suhit Gupta]

<div class='os_post_top_link'><a href='http://blogs.cnet.com/8301-13506_1-9809950-17.html?tag=blg.orig' target='_blank'>http://blogs.cnet.com/8301-13506_1-9809950-17.html?tag=blg.orig</a><br /><br /></div><i>"Although Blockbuster tried everything it could to create a compelling reason for us to use the service, the company could not overcome its downfall. For years, it was hated by those people who saw it as a monolithic organization that enjoyed charging exorbitant late fees and had little or no care of what the customers wanted most. So when Netflix offered an entirely new service, the dynamics of the industry was inexorably changed, and Blockbuster was left playing catch up. According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close. But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership."</i><br /><br />This was a hard news item to post on because Blockbuster has just been a staple in our lives for a very large number of years. But due to a, what overall appears to be, a lack of focus, Blockbuster is absolutely suffering. Store closures, lower earnings, losses all around just don't bode well for this media icon. It is not completely out yet, but it is more clear now than ever that they need to do something drastic, something completely innovative, in order to restore the glory days. Hmm, maybe team up with cable companies to help power their pay-per-view?

[Dyvim]

I for one would be glad to see Blockbuster go. I've always hated them ever since they came out. They did for video rentals what Starbucks did for coffee: bring us higher prices and close down a ton of indie stores. I remember when I used to rent new movies (on VHS) for $0.99 and old movies for $0.49 and along came BB charging $3.50 per rental and somehow they managed to close down all the indie competition that charged less. It's weird because it's the anti-Wal-mart. I can see how Wal-Mart succeeds because their prices are so low, but BB (and Starbucks) charge more and yet still came to dominate their respective markets. I've been a happy NetFlix user for 3 years now.

[Chris Gohlke]

I've been using Blockbuster for a while and am overall happy with their service. I especially like the in store exchange since they have a store right around the corner from my house (which is currently being cut down to half the size).

[Crocuta]

I was never a big in-store renter, but I liked the idea of renting through the mail. I tried Netflix first, but they were horrible. They would sometimes wait a week or more between my sending a movie back and them acknowledging receipt of it. Then another day or two for shipping out the next one and a day for the mail. Unlimited, my @%$. It's not unlimited if the turnaround is one and a half to two weeks.

Then I tried Blockbuster and they've been great. Their distribution center near me is in the same city as Netflix's, but they usually turn around a movie in 3-4 days. And, if I take it to the local store, I can not only get a free movie while I wait, but it gets 'checked in' right in the store, so they send out my next one right away. It's always a pain to return the ones I rent from the store, but sometimes I drop off my mailer in the store (without getting the free rental) just to get instant credit for the return.

Anyway, I'm sorry to hear that they're having trouble as I would really miss their service if they went away. I don't think I'd go back to Netflix even if Blockbuster went under. I'd just live without it as it's not worth the aggravation of dealing with them.