Blockbuster will cease to exist within 3 years

[Ziroc]

You've known them for some time. They cornered the video rental market in the early 1990's. (Replacing mom and pop rental shops).
But all that will end soon. Blockbuster is bleeding money left and right, and after closing over 900 stores last year, they are now about to close more.

And they know they're in trouble. Anyone go into one lately and look at their prices today? NINE dollars to rent a video game for 5 days. $5 or is it $6 to rent a movie for 3 days. It's a joke.

The reason it isn't working is DVR's (PPV). Netflix and other over the Internet real-time streaming. On your DVR, you click one time, and boom, for $3.99 you have a movie. (IN HD--blu-ray quality). No needing to drive to and from the Blockbuster spending expensive gas to get/return the movie.

Blockbuster waited too late to get into the mailing movies ala Netflix. And that is what hurt them. Their pricing structures are now out of desperation. You can see it. Sad really.
Again, greed is will be the downfall of any company. I said this before the entire financial crisis, and say it again. Going down the greed route may earn you short-term cash, but long-term failure.

Just had to post this.. its been bugging me. You would think a one-time great company (Blockbuster) would have seen the signs... Like many failed companies, I think Blockbuster grew so large, they lost touch with their customers and what trends were taking place. I'm sure they expected Netflix to be a failure.

Bet their not laughing now.

(lol.. this sounds like an editorial in a money magazine)

Just posting an observation. (And... if you have stock in BB, pull it. FAST)

[Firestormalpha]

what's a bloockbuster?

[SecretMaster]

To be honest, it almost seems natural that certain businesses would collapse, simply due to the nature of their business. As technology progresses, it renders certain services obsolete (in this case movie rentals). Netflix may have found a way to adapt to changing technologies, but I'm certain that even their future outlook is dubious. Just my two cents.

[Ziroc]

Originally Posted by Firestormalpha what's a blockbuster?

It's a drunken sluurreddd word.

[Ziroc]

Originally Posted by SecretMaster To be honest, it almost seems natural that certain businesses would collapse, simply due to the nature of their business. As technology progresses, it renders certain services obsolete (in this case movie rentals). Netflix may have found a way to adapt to changing technologies, but I'm certain that even their future outlook is dubious. Just my two cents.

Agreed. But you would have thought someone in their company would have seen the internet or mail services and jumped on it.. Now that they have, its too late. Netflix doesn't have to support brick & mortar shops either.

I've even seen the Blockbuster vending machines...

[SpiritWarrior]

Originally Posted by Ziroc You've known them for some time. They cornered the video rental market in the early 1990's. (Replacing mom and pop rental shops). But all that will end soon. Blockbuster is bleeding money left and right, and after closing over 900 stores last year, they are now about to close more. And they know they're in trouble. Anyone go into one lately and look at their prices today? NINE dollars to rent a video game for 5 days. $5 or is it $6 to rent a movie for 3 days. It's a joke. The reason it isn't working is DVR's (PPV). Netflix and other over the Internet real-time streaming. On your DVR, you click one time, and boom, for $3.99 you have a movie. (IN HD--blu-ray quality). No needing to drive to and from the Blockbuster spending expensive gas to get/return the movie. Blockbuster waited too late to get into the mailing movies ala Netflix. And that is what hurt them. Their pricing structures are now out of desperation. You can see it. Sad really. Again, greed is will be the downfall of any company. I said this before the entire financial crisis, and say it again. Going down the greed route may earn you short-term cash, but long-term failure. Just had to post this.. its been bugging me. You would think a one-time great company (Blockbuster) would have seen the signs... Like many failed companies, I think Blockbuster grew so large, they lost touch with their customers and what trends were taking place. I'm sure they expected Netflix to be a failure. Bet their not laughing now. (lol.. this sounds like an editorial in a money magazine) Just posting an observation. (And... if you have stock in BB, pull it. FAST)

They monopolized the market and then, when Netflix came along, with ZERO late fees, they continued to profit from their late fees. By the time they got into the game and finally realized they no longer owned video renters, and abolished their late fees, they were pretty much obsolete and had lost at least half their market. Then, to compete with Netflix came those Redbox vendor machines you see at the stores. Where you can browse movies while getting gorceries and swipe your credit card in and it's done. No waiting, no entering a store, no waiting in line and no checking the mail for your DVD. Technology improved, and they were too selfish to anticipate it. They did it to themselves.

[John D Harris]

Originally Posted by Ziroc Agreed. But you would have thought someone in their company would have seen the internet or mail services and jumped on it.. Now that they have, its too late. Netflix doesn't have to support brick & mortar shops either. I've even seen the Blockbuster vending machines...

Z Man, the buggie manufactures didn't see the the future was the automobile, to many times companies see what they do and are miopic about it. The buggie companies thought they provided buggies, but what they realy did was provide people a mod of transportation, so they missed the next thing in transportation. Blockbuster thinks they rents movies and games, but what they realy do is provide their customers entertainment and a few hours of escape.

[Lord of Alcohol]

Blockbuster got the last late fee out of me years ago, and I hope I helped knock them out. I like Netflix, have been with them for years. Though I do feel bad for the little independent store I used to go to, I'm sure they will find a way to adapt.

[Larry_OHF]

A lot of changes taking place these days. Circuit City, Linens'N Things, even the local Adam & Eve! So many stores going down, and I don't know when it's gonna stop. Yes, I've been expecting to see Blockbuster's final day coming for a while now. The local Blockbuster closed more than a year ago. Just down the road, there's a Family Video, but I am a Netflix guy.

[SecretMaster]

Maybe its because I rarely watch movies, but how many people actually rent movies? Maybe I'm underestimating the market, but I just don't see it as a popular thing.