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Items tagged with Blockbuster
Many years ago, I helped run a local mom-and-pop video rental store. Business was okay, but not great. By the time I came onto the scene, chains like Blockbuster and Hollywood Video had started putting the squeeze on independently owned stores by inking revenue sharing deals with movie studios. While we analyzed metrics to see how many copies of a new release we could afford to buy and still turn a profit in our modest space, these big chains would receive shelves full of new flicks and share revenue with the studios. It was tough to compete with that (we weren't afforded the same or even similar...
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If you’re a fan of the cancelled Fox cult smash “Arrested Development”, today is the day you’ve been awaiting for years: the show is back. Netflix has followed through on its promise to deliver new episodes, and you can stream all 15 episodes today in HD. However, today’s premier is about much more than just a beloved comedy coming back for a final season. Back in November of 2011 (yes, it’s been that long) when 20th Century Fox announced its collaboration with Netflix on the show, its chairmen said, “This innovative deal with Netflix represents a new business...
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Most of us can’t remember the last time we were inside a Blockbuster video store, which is why the chain went belly up nearly two years ago, and why Dish Network is planning to close 300 Blockbuster locations in the coming weeks, which will bring the total number of deceased locations to 800. Dish bought up the dregs of Blockbuster hoping to turn the company into something that could compete with the likes of both Netflix and Redbox, but it’s not going well. The Netflix-ish plan has officially been scrapped, and the brick-and-mortar stores that aren’t shuttered will likely be...
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Sad days for Blockbuster. The once mighty video rental chain has fallen on hard times in a world where Netflix, VUDU and other video streaming services are proving more affordable and convenient. There was, however, a glimmer of hope. Charlie Ergen had planned to have Dish Network acquire Blockbuster from bankruptcy in April of 2011, and then morph it into a Netflix rival. His master plan was to equip Blockbuster stores with Dish mobile devices that could then be used to stream Blockbuster movies. The plan didn't work out. U.S. regulators weren't willing to immediately approve a waiver for Dish...
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Perhaps Dish Network should just pull the plug on Blockbuster completely, but instead it looks like the once popular DVD rental store is destined to die a slow death. The satellite service provider indicated it would be closing more Blockbuster locations in the coming months than originally planned, and those that remain will turn into quasi-Dish Network customer service locations. News of additional closures comes from Dish Network Chief Executive Joe Clayton, who spoke with Reuters at the Consumer Electronics Show in Las Vegas this week. Clayton said that any location not making a profit will...
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Bad news for those who love movies and love saving money. In the wake of both Netflix and Redbox raising rates, even Blockbuster can't resist. At this point, it's hard to ignore that the root cause has to be the studios -- Blockbuster is in no position to hike up rates at a time when it could use every ounce of market share it could muster. Blockbuster has just announced that their rental kiosks will soon slip out hot new movies for $3, a 3x price increase from before. "Recent" releases will rent for $2/night, while all other (i.e. older) movies will rent for $1/night. The silver lining is that...
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Netflix posted its Q3 results today, and they reflect what analysts generally expected. The company's price hikes, combined with its schizophrenic announcement that it would split the brand (followed by a retraction a few weeks later) took a toll on the total number of subscribers. The total number of subscribers fell from 24.59M in Q2 to 23.79M in Q3. That's a net loss of 800,000 people, but the actual number of departures was likely much higher, given that the company undoubtedly added subscribers throughout the quarter. The company's letter to shareholders shed light on how the events were internally...
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In April, Dish Network acquired Blockbuster. Since then, there has been plenty of speculation as to what Dish would do with Blockbuster and its assets. We already know Dish will keep 600 Blockbuster stores open, and now we're learning of other possible plans. Word has it that Dish Network is planning to roll out a streaming service using the Blockbuster brand that will compete with Netflix. To offer this service, Dish plans to use an existing infrastructure that currently delivers on-demand movies to its customers. The new service could offer classic and archive movies as well as newer, on-demand...
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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...
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Desperate times call for desperate measures. And while Blockbuster isn't exactly "out" just yet, they're definitely "down." At least compared to companies like Redbox and Netflix. But if there's ever a time to take advantage of a man being down, this is it. Netflix had to know full-well that the pricing changes would cause a major backlash, and Blockbuster has responded just like any major competitor would: by suggesting that they can help in a situation of need. The rental company that made DVD rentals famous is now claiming that they'll "rescue upset Netflix customers" by launching a limited...
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Would you invest any time or money into Blockbuster at this point? It would take a really bold (or really rich...or really bored) person to say "yes," but Dish Network must fit that criteria. The company has just decided to broaden their scope when it comes to Blockbuster, and that apparently means taking over around 500 Blockbuster leases. Dish will soon by BB's parent, and they're agreeing now to take over 500 physical stores as they consider ways to turn things around in a world obsessed with digital downloads. The report was spotted in Dish's recently filed papers with the U.S. Bankruptcy Court...
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After some six weeks on the auction block, beleagured Blockbuster has found a buyer. The Dish Network has agreed to purchase its erstwhile competitor. The company won the auction with a bid of some $320 million and expects to pay ~$228 million once other transaction adjustments are completed. The purchase process will reportedly be finished by the end of the current quarter. "With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities...
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It's a shame, but no one can honestly say that they didn't see this coming. Blockbuster has been dwindling for years. They simply haven't been "popular" in years, and many younger folks don't even acknowledge their existence. These days, it's all about Netflix, Redbox and streaming media. Even cable TV is becoming a lot like Blockbuster: unnecessary. For years, the idea of renting films and video games from a retail shop made perfect sense. But this was before we had things like broadband Internet everywhere and by-mail DVD rentals. The company has been sliding ever since, and even though they...
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Ever heard of Redbox? Probably so. It's the company who puts movie rental kiosks in various stores, giving customers the ability to rent their favorite new release DVD for just $1 per night. This, along with Netflix's cheap monthly rates, have seriously hurt Blockbuster, and movie studios are concerned that they could be hurting the purchase of DVDs and Blu-ray films as well. Due to this, studios are putting a 28-day block on Netflix and Redbox, refusing to send them movies until they've been at Best Buy and Walmart for nearly a month. The thought is that this will encourage more purchases, and...
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