Blockbuster Reportedly Nearing Bankruptcy, Hopes For A Miracle

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News Posted: Sat, Aug 28 2010 6:58 AM
Well, we can't all act surprised at the same time. For years now, Blockbuster has been dwindling in importance. The store was once the face of movie renting, and now it's the face of what used-to-be. Ever since Netflix stormed onto the scene with a more convenient method of renting DVDs, Blockbuster has been declining. Stores have started to shut down, and even Blockbuster's attempts to mimic Netflix never really worked out. And once Netflix launched their Watch Instantly streaming service, the final nails began to sink into Blockbuster.


According to the LA Times, Blockbuster is preparing to file for bankruptcy next month. The company has already had some close calls in the recent months, but debt holders agreed to hold back as the company made last ditch efforts to turn things around. According to the report, execs from the company and senior debt holders met this past week with six major movie studies to "discuss their intention to enter a pre-planned bankruptcy in mid-September."


Unlike Circuit City, which simply folded and now fails to exist save for an online port, Blockbuster will still try to right the ship post-filing. Reportedly, they will use their borrowed time to restructure debt, but exact plans beyond that aren't yet known. Whatever happens, we've all seen this fall coming. After dominating for so long, Blockbuster never has kept pace with more nimble rivals. And these days, that kind of lallygagging simply won't pay off.
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3vi1 replied on Sat, Aug 28 2010 7:34 PM

I think they have a pretty good chance of rebounding after they restructure. But even if they don't, it's hard to feel too much compassion for them when I think back to the way they ran all of the Mom & Pop video stores out of business all those years back.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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realneil replied on Sat, Aug 28 2010 8:04 PM

They were ruthless in their day, and now their day has come and gone. They used to give many people tons of crap about renting movies and the late fees were legend too. I stopped doing business with them when I found a movie in my sons car that was a month late and they nailed me to the cross. It was an expensive lesson for me, but I learned it.

So if it's curtains for them, I'll not lose any sleep over it.

If they want loyalty, then they should buy a Dog.

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fat78 replied on Sat, Aug 28 2010 8:23 PM

blockbuster waited to long to change. to many people who moved from block buster to something like netflix probably wont come back unless prices are cheaper.

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NPirce replied on Sat, Aug 28 2010 9:39 PM

poor leadership of Blockbuster Inc

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Inspector replied on Sat, Aug 28 2010 9:47 PM

Haven't been to block buster since i was 8. Don't really care for them but lets see how they can turn things around before going bankrupt.

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What they need to do is just make all their pricing the same as redbox. Only $1.15 after tax per disc per night. If you look at how much more of a selection that blockbuster has over redbox, its a no brainer, of course, thats saying if they did the whole price thing.

Honestly, I'd start buying again from them if their prices were Only $1.15 after tax per disc per night. That would solve the problem almost over night or in a week. I bet sales would go through the roof if they did that!

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Joel H replied on Sun, Aug 29 2010 12:36 PM

I don't really see how they can recover from this without making substantial changes to their core business. They probably *can't* afford to price like Redbox. Redbox, after all, is a kiosk that sits outside another building. It's automated with no employees to pay, no shelves to stock, no store to maintain, etc.

Blockbuster could try to reinvent itself as a movie sales and expert company--ie, "Come talk to one of our genre / film experts who can advise you on some great films," but I can't see this necessarily taking off. They're irrelevant at this point.

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We don't officially have Netflix or Hulu here in Canada so Blockbusters inevitable death may simply take longer (the Rogers video rental stores are closing like crazy and I'm sure the Blockbusters won't hold out for long).

Streaming media and online video rentals are available now (AppleTV, Roku, Boxee...), how Blockbuster didn't see this till it was too late is beyond me.

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realneil replied on Sun, Aug 29 2010 9:19 PM

WRichardson:
how Blockbuster didn't see this till it was too late is beyond me

'Twas a bad case of "Heads-In-The-Sand-itus"    If there are stockholders, they should shoot the board.

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acarzt replied on Sun, Aug 29 2010 10:11 PM

Heh, I suppose if I wanted to help them out, I could pay my late fees lol

But I don't care if Blockbuster survives lol

They are behind the times. They would need to make substantial changes to stay in business.

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3vi1:

I think they have a pretty good chance of rebounding after they restructure. But even if they don't, it's hard to feel too much compassion for them when I think back to the way they ran all of the Mom & Pop video stores out of business all those years back.

 

I also think so.

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acarzt:

Heh, I suppose if I wanted to help them out, I could pay my late fees lol

But I don't care if Blockbuster survives lol

They are behind the times. They would need to make substantial changes to stay in business.

 

 I guess it was a good move when I was at Blockbuster the other day and the salesman aws trying real hard to get me to purchase an account on their new online service that I shot him down. Im not really in the market for something like that right now and it probably would have pissed me off if I had got it then they filed bankrupsy after that. Good luck to them I hate to see any business fail these days because if not anything else the economic impact it would have on any employees. To many people are out of work already!!!!

 

 

 

 

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The only thing they will be remembered for is the Overdraft rape of millions of customers!

I am sure they will be bailed out as well! This is a company that should have gone under a long time ago. The only thing that saved them was their Video game rentals. That was until the parents started getting the overage fees.

I still don't understand why people feel sorry for a company like this who through its own business practices have failed as should rightly do so! Then on the other side you have good companies with good employees, like IBM, Xerox, RCA, Phillips, Magnovox who once stood for quality American products. Then through a series of layoffs and outsourcing. Through that, the product weakened to eventually have the company sold to overseas entities. Although if they were deemed to big to fail then they were bailed out? And people wondered what happened to our GDP:P

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realneil replied on Tue, Aug 31 2010 9:41 AM

animatortom:
The only thing they will be remembered for is the Overdraft rape of millions of customers!

Exactly! That's why I shut them down and stopped doing business with them. I got allot of flack from my family at the time, so I offered to let THEM pay any and all of the overage fees we were racking up. It didn't help that we were 35 miles away from the place either. My son had a movie in his car that should have been returned for about two months. I never got a call from BlockBastards (like I should have) about it not being returned, so the charges kept on racking up. Until I found it and returned it myself. They nailed me good, and that was the last time I ever paid them anything at all. I realize it wasn't their fault, but I could have bought 4 or 5 of that movie by the time they were done with me, and that was what killed them in my mind.

They're already dead and stinking to me.

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crowTrobot replied on Tue, Aug 31 2010 10:50 AM

WRichardson:

We don't officially have Netflix or Hulu here in Canada so Blockbusters inevitable death may simply take longer (the Rogers video rental stores are closing like crazy and I'm sure the Blockbusters won't hold out for long).

Streaming media and online video rentals are available now (AppleTV, Roku, Boxee...), how Blockbuster didn't see this till it was too late is beyond me.

yeah the resilience of blockbuster over here is astounding, I think there's still one open a block from my office. 

I'd love to see online rental places take off here but I highly doubt it since Rogers and Bell has the ISP monopoly and they are crippling bandwidth to prevent the rise of these online streaming services (it conflicts directly with their Cable and Satellite PPV packages).  ugh.... I hate ISPs up here in Canada.

 

 

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Yeah Neil, That is what always amazed me! What corporate exec really thought he was a genius when he came up with that business plan? (just keep charging each day now matter how long!) He must have been a lawyer!

If they would have stuck to a simple and understandable policy then people would still be going each week to rent their weekly entertainment. If the overdraft was limited to the cost of the DVD or game plus 5 or even 25%, and they were allowed to keep it. Then they would have many happy customers that dont feel like only a number to them, and more like actual customers:P

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realneil replied on Tue, Aug 31 2010 7:21 PM

My NetFlix account suits me just fine. There's a model to go by.

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R.I.P Blockbuster :(

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