Bankruptcy, Coming Soon to a Blockbuster Near You

[Chris Gohlke]

<div class='os_post_top_link'><a href='http://latimesblogs.latimes.com/entertainmentnewsbuzz/blockbuster/' target='_blank'>http://latimesblogs.latimes.com/ent...zz/blockbuster/</a><br /><br /></div><p><em>"After dominating the home video rental business for more than a decade and struggling to survive in recent years against upstarts Netflix and Redbox, Blockbuster Inc. is preparing to file for bankruptcy next month, according to people who have been briefed on the matter."</em></p><p><em><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/dht/auto/1282996217.usr10.jpg" style="border: 1px solid #d2d2bb;" /></em></p><p>The writing has been on the wall for this one for a while now. &nbsp;I'm sure Blockbuster will be a case study in business textbooks in the future as a lesson to never be too comfortable as market king. &nbsp;They unfortunately used their leadership position to abuse their customers and were far to reactionary to major changes in the market. &nbsp;Redbox and Netflix have just torn them apart. &nbsp;</p><p><em></em></p>

[randalllewis]

There is a Blockbuster in my neighborhood. I haven't heard if it will be one of the hundreds of stores that will close, but I hope it doesn't. I haven't set foot in the place in years but I really don't want to see another empty storefront just now. I always thought they were the highest price video rental store around but they were convenient to my home. At first I liked their policy of having lots of copies of new releases until I realized the price I was paying for that was that they cut back on older and more obscure movies to the point that they were non-existent. I also remember being disappointed in how slowly they moved to DVDs.

There are a few very good local video stores in town that will likely benefit from the demise of Blockbuster. First Hollywood Video, now Blockbuster. Is there a video chain left?

[Chris Gohlke]

Bigger picture, I wonder if we are going to see retail go full circle. Market forces have taken things out to dominance of the Walmarts, Amazons, Netflix, etc. But, a lot of these companies are growing so large that is it reopening the door to allow well managed, customer service oriented local businesses to provide a valuable service.

[Reid Kistler]

Bigger picture, I wonder if we are going to see retail go full circle. Market forces have taken things out to dominance of the Walmarts, Amazons, Netflix, etc. But, a lot of these companies are growing so large that is it reopening the door to allow well managed, customer service oriented local businesses to provide a valuable service.

For some products: Perhaps.
"Everything else being equal," would prefer to purchase most items locally - am even willing to pay a slight price penalty for the privilege of doing so.

But when shopping locally, find that the price differences are often substantial, product selection tends to be much worse, and customer service is almost non-existent: why should I pay more, for a product that is often a substitute for what I really want, and have to be inconvenienced as well?

Late last year we actually bought a 50" Plasma from DELL - and we shopped the local stores extensively, practically begging someone to offer the same model for CLOSE to the cost Dell featured. No takers. AND, yes, we DID PAY SALES TAX on the Dell purchase (something that is not true of all internet outlets), and had to wait for the unit to ship, and had to worry about what we would do if it arrived broken.

Had a local store come close to their price - or, heck, had been merely In The Ballpark, along with service that suggested "We want your business..." :eek:

And THAT was for a reasonably large ticket, and Physically large device: for a movie? Blockbuster doesn't have a chance....

Most of our kids (all out of the house :D ) have Netflix accounts, and between DVDs in the mail and Instant Downloads / Streaming have no desire to go out to a video rental store - where they are likely to have fewer title options.

Frankly, I was amazed to hear that - for the most part - this younger generation (20 to 30-something) - is more interested in Choice, Cost, AND Immediate Gratification than they are in Picture or Sound quality: Streaming is where its at, with the Netflix DVD In The Mail simply a nice LITTLE bonus....

We don't use Netflix ourselves - or any of its competitors, other than a handful of FREE Amazon VOD viewings - but still have not set foot inside a Blockbuster for 2 years: the amount of $$ we USED to spend on rentals has allowed us to to add a nice Movie Package to our cable service (AT&T UVerse), and we simply have not missed running out to rent a dvd, hoping what we want is in stock, standing in line to rent it - and then running back a few days later to return the darned thing (or paying a Late Penalty because we forgot....). And, by the way, the DVD may or may not have been PLAYABLE due to being smeared with fingerprints (or Who Knows What!?!) and / or covered in scratches... :(


YMMV, of course: having access to a fairly high speed internet connection is required for streaming video, and the distance to your local rental store - or its convenient location near your daily commute - can certainly impact your willingness to just drip in.

I thought Blockbuster was on to a Good Thing when they first competed with Netflix, WITH the option to return mailed videos to a local store & check out a new one - but obviously not enough people were happy with that service, or with the changes they imposed on it over time....

[Chris Gohlke]

But when shopping locally, find that the price differences are often substantial, product selection tends to be much worse, and customer service is almost non-existent: why should I pay more, for a product that is often a substitute for what I really want, and have to be inconvenienced as well?

Exactly, I've gone into some local stores, they didn't have what I wanted. They'd pull out a catalog and offer to order it. With the caveat that I paid in advance and could not return the item since it was a special order. Plus it take a week or two to get in. I'd whip out my phone, find it for cheaper online with less restrictions and faster delivery.

[Jason Dunn]

I don't like seeing businesses going under, but I think ultimately Blockbuster was too arrogant to acknowledge the way the market was shifting. Here where I live, they've always had RIDICULOUS prices on DVDs for purchase - but given their market strength, they could have been one of the best places to buy movies from instead of being the worst.

I think DVD stores will end up being small, specialized stores in big cities where discerning clientele are willing to pay more for the customer service and specialized selection. Basically what most smaller book stores have become. I think the rental part of the equation will eventually fade away though...there's just too much cheaper and easier competition for rentals.