Blockbuster To Close More Stores, But Saves Majority

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News Posted: Sat, Jul 23 2011 4:14 PM
Dish Network's eleventh hour Blockbuster purchase saved a number of stores from imminent closure, but the company still intends to close additional properties. Blockbuster has spun this into a victory; the company's blog claims to have "saved" stores as opposed to liquidating them.

"We’re pleased that we will continue to operate more than 90 percent of the stores that were offered at auction in April,” said Michael Kelly, president of Blockbuster. “By lowering pricing and offering competitive summer promotions, we’ve brought millions of customers back into Blockbuster stores in the last three months to experience the best in convenience, choice and value. Today, more than 100 million people live near a Blockbuster store.”



“Unfortunately, despite our efforts to reach reasonable terms, some property owners have closed stores,” Kelly added. “However, we’ll continue to look for opportunities for physical distribution in these neighborhoods as we expand our in-store experience, unmatched for movies and family entertainment."

The company originally had some 1700 properties, of which 1500 are currently still up and running. The company's online offerings may have gotten a welcome jolt in recent weeks; Blockbuster has launched a fresh offensive recently in an attempt to lure away customers angry over Netflix's sudden price hike. Last week, the company announced it would offer a combined DVD+streaming access plan with new releases arriving more quickly than on Netflix, game rentals for multiple consoles, in-store exchanges, and no additional charge for Blu-ray rentals. In and of themselves, the perks might not be sufficient to prompt a mass exodus, but it's a well-timed move on Blockbuster's part.

The averted store closings are good news, but we've yet to hear much from Dish on how it intends to integrate the Blockbuster brand into its own offerings. There aren't many linkages between satellite broadcasting and physical film distribution, and no simple way for Dish to convert Blockbuster into a hybrid company while keeping prices competitive with the online-only offerings.
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Competition is welcome but I think Block Buster is going the way of MySpace. Yea it was once a hit and had a good business plan but times change and to me their time has passed.

Netflix is the new kid on the block just like Facebook out did MySpace.

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fat78 replied on Sat, Jul 23 2011 5:29 PM

I think netflixs should add games to there disk rental service, because people who want both movies and games usally have subscribe to gamefly and netflixs. If netflixs offers games as a option when selecting what service a person wants they may be able to make some extra cash by taking some gamefly subcribers and making it easier for those people who want both.

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There are no physical blockbuster locations near me anymore they all closed down. So personally I am not really interested in there service. Of course I don't have Netflix either...

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realneil replied on Sat, Jul 23 2011 8:08 PM

The Blockbuster name carries a stigma of out of control late fees and exorbitant penalties with it. Dish should consider changing that name to neutralize that.

I'll ignore ANY offer to do business with Blockbuster in any way for as long as I live, because I never forget. (and Blockbuster sux)

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Inspector replied on Sun, Jul 24 2011 3:30 AM

There is really no need for the good old disk movies anymore, just like how people are saying there are less people buying games in store. Movie downloads i can stand, game downloads... i can't lol that urge to just play it! :D

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MCook replied on Sun, Jul 24 2011 4:58 AM

I have one store near me in Ukiah, CA, and two Kiosks, one in Safeway in Ukiah and one in Safeway in Willits. The store in Ukiah is clearing out everything, and as far as I know is closing, though according the Blockbuster Web Site it's still business as usual in the Ukiah store.

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Manduh replied on Mon, Jul 25 2011 10:46 AM

There were two in our town, but now there is only one. Their game selection is terrible, they usually only have one copy, no matter which game and it's always gone. With the 7-day game rentals they should really have more copies than that. It's pretty frustrating. We have had to go to "Rogers Video" instead, and I hate supporting that company!

Either way I won't be sad if the other store closes here.

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fat78 replied on Tue, Jul 26 2011 12:23 AM

I decide to try out blockbusters online game rental, because i used to love going to blockbusters as a kid when their prices were more reasonable and loved getting those rent one get one free coupons (aswell sometimes they forget to scan games so free games for me). Fifteen dollars a month for 2 disc didnt seem to bad of a deal, but probably 75% of the games have a wait less and most of them are months long. I rented mafia 2 and batman arkham asylum, mafia 2 played perfectly and enjoyed it alot, batman kept freezing so i sent it back and they sent me a copy that didnt play at all and had a a huge scratch so i sent it back (hopefully third times the charm). Still have a 30 day trial so i am not to upset, but i hope they recover and improve on their online service, because i still like blockbuster and dont want to see netflixs be the only major rental place.

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I own a few shares of Netflix stock and recently with the price hike and the economy they have gone way down. Honestly, I would love to see Blockbuster make it's way out of this hole it has found itself in and hopefully with some restructuring from Dish they can improve their service and gain some value. The way I would like to see this play out is now that Dish owns Blockbuster and since, unlike Netflix they rent video games as well it might pressure Netflix to reduce it's prices and possibly make a move toward offering games with a purchase of Gamefly. I don't know it's all speculation, since GameFly is a privately owned company which rents games and not movies and Netflix is the opposite in order for them to compete with a reinvigorated Blockbuster it seems possible.

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