Rumor - Blockbuster Close to Killing B&M Stores?

[DoctorFinger]

I've been predicting this for about 5 years now, but it's still a little shocking to hear. Ars is reporting that Blockbuster is close to pulling the plug on it's retail stores. Which (according to Wiki) includes about 5,200 stores in the US, and 3,200 stores around the world.

Blockbuster may be counting down the days until it's forced to close its retail stores, the company revealed in a filing with the Securities and Exchange Commission this week. In the filing, the company revealed that it may not be able to meet the terms of a recent $250 million loan, and that there was "substantial doubt" about its ability to continue as a business in the near future.While I can't say I'd be sorry to see the business go - I personally haven't been in a Blockbuster in about 8 years - I feel for the people who would lose their jobs if this comes to pass. But like so many stores before it, Blockbuster just couldn't adapt to the changing market.

Source - Ars (http://arstechnica.com/media/news/2009/04/blockbuster-reveals-substantial-doubt-that-it-can-continue.ars).

[AgtFox]

Well, they tried to adapt, they just waited too long and let Netflix and Gamefly penetrate the market to the point anything they did just didn't work. Even with their online DVD rental market they never figured out that people have moved on from the renting at B&M stores, adding in the swap in-store option and all that.

Their other problem on the gaming side was that their rental prices were too expensive, although they do/did have plans to rent games out online coming later this year. They may still do it because maybe they're pulling out of B&M and going straight to online renting *shrug*.

[Telefrog]

Can we get a "Doom" image, please?

[scythe]

It's a bit sad, but the jackass in me can't help but be excited for awesome liquidations.

[Narradisall]

You think they'll go just online, or bust?

There is still a store near me.... tempting to go rent loads of games and pray I never have to return.

[Karmakin]

It's a bit sad, but the jackass in me can't help but be excited for awesome liquidations.

QFT

and that's about it.

[zarathstra]

Can't say I'm surprised. I've only been to Blockbuster a couple times in the past few years (mostly to hunt down cheap video games) but whenever i was there the place was practically empty.

[civil]

Oy. The gf and I use one near us for emergency rentals, but their pricing mechanic has got to go.

Still, my first hope when I saw the front page description was: "Rumor...Blockbuster Close to...buying Gamefly?" I was disappointed when I clicked on the link for two reasons, namely that I want Gamefly to be bought out by Netlifx (or in a pinch Blockbuster) so much. I hate the Gamefly system.

[AgtFox]

You think they'll go just online, or bust?

There is still a store near me.... tempting to go rent loads of games and pray I never have to return.
I'm not sure how much their online side makes versus the B&M side. I can only guess they'd move to online and either totally close the B&M or significantly reduce the number of locations.

As for the second part, I wouldn't necessarily do that. If their B&M side were to go into liquidation and liquidation companies were to take over with selling and keeping track of merchandise you'll be getting constant collector calls probably because they will have your info.

[AgtFox]

I hate the Gamefly system.
Do you hate it because there's no distribution center by Chicago or in the Midwest? When I was on it I would get games in 2 business days from originally California, but later the Austin, TX center.

Netflix doesn't have distribution centers everywhere either, but they are more plentiful. They also handle quite a bit more volume than Gamefly could dream of and they are working with items of lesser value (even Blu-Ray movies are cheaper than games).

[Sandman]

They killed my store a long time ago.

[civil]

Do you hate it because there's no distribution center by Chicago or in the Midwest? When I was on it I would get games in 2 business days from originally California, but later the Austin, TX center.
It's a combination of inventory (only older, less popular games seem to have any level above "Low"), lack of distribution centers (it's mind-boggling they don't have one in the Midwest), poor turnaround time (it's about 1.5 weeks for a sending/receiving turnaround) and poor customer service (try contacting them for any issues - again a pitiful turnaround time).

Sure there are other options, but it's like looking at a few piles of shit and going for the one that smells less. In the end I'm still getting crap on my hands.

[Adam Blue]

I'm sad because Gamefly isn't the end all be all for me. I gave them Mad World on Monday...of last week. Where's my new game? Send me something on my list please!

[Wraith]

http://blog.wired.com/photos/uncategorized/2008/09/25/blockbuster.jpg


I guess I can't really say much about Blockbuster B&M. I rented a little during college, and used their online service for a couple years, but there just aren't any stores near me.

I know there are other video rental chains, but what will the state of video game rentals be if Blockbuster dies out? Are Gamefly and other online rental services the only option, or are there still some B&M chains that do video game rentals well?

[Raen]

There's a store down the road from me. The staff are helpful and friendly, and they always have good pricing (I feel at least) and usually have really good deals on snacks and stuff. I live in a building with non-secure mail and really don't trust the neighbours, so don't want to rent from any of the online services. I would seriously miss B&M If it were to go.

[TheFlyingOrc]

Even with their online DVD rental market they never figured out that people have moved on from the renting at B&M stores, adding in the swap in-store option and all that.

Well, the point of that was they couldn't possibly compete with Netflix without offering SOME sort of advantage over them. The store thing was the only possible way they could market their service as better.

[Bad Buddha]

My son is an assistant manager at a local store. He pretty much hates having to deal with the general public, but the pay is adequate and he can manage his work hours around his school schedule. We really like the free games and movies and we get to see the new releases before they're available on the street. He also got a kick-ass employee discount on his 360!

I guess we really don't deal with any of the issues that the average customer has to deal with, but to hear his Karak-like stories, the average customer is mud-fence stupid.

I hope they stay afloat until he graduates.

[AgtFox]

Well, the point of that was they couldn't possibly compete with Netflix without offering SOME sort of advantage over them. The store thing was the only possible way they could market their service as better.
They could have done something else such as having one extra DVD out at a time at the same price Netflix has it for one DVD less. That would have increased their share of the market more than likely. Basic fact is that they didn't see Netflix as a competitor before it was too late and they were already well behind the 8 ball when they decided to add their online presence.

[TheFlyingOrc]

They could have done something else such as having one extra DVD out at a time at the same price Netflix has it for one DVD less.
Dude, the reason Netflix has their pricing scheme is because that's the best they can do and still make money while holding off the competition. Blockbuster cannot use the DVDs on the shelf in their store, so they were the underdog in the market. You can't just "be cheaper". You have to "be cheaper" and "still make money".

edit: And the rest of your post is what I'm saying. Blockbuster should have BOUGHT Netflix back when it first started. They didn't adapt, and they're paying for it.

[Wilkz07]

i think blockbuster canada is still doing well... mainly because we don't get gamefly or netflix in canada. its the only store i rent from now. sucks to Rogers Plus (formerly Rogers Video), the Plus means they have more copies of games that are currently all rented out when you go in.

[Superman's Dead]

What about Hollywood Video? Is this a problem for all chain rental stores?

[tacitus]

What about Hollywood Video? Is this a problem for all chain rental stores?
About 6 months ago or so Hollywood closed a bunch of stores including the local store I frequented; I personally blame Blockbuster overbuilding putting them out of business. There really didn't need to like 5 blockbusters within a 5 mile radius of my house. I'm in the 'burbs for frak's sake there just aren't that many people around. One of them closed a couple of months after Hollywood closed. Now that they put most non-blockbuster stores out of business; they are going to close their stores. Frak.

[biosc1]

i think blockbuster canada is still doing well... mainly because we don't get gamefly or netflix in canada. its the only store i rent from now. sucks to Rogers Plus (formerly Rogers Video), the Plus means they have more copies of games that are currently all rented out when you go in.

...but...but...but what about Canflix and Zip.ca? ;) (both sub-par services in my mind)

Personally, I haven't been to a Blockbuster in years. Never even had an account. Always went with Rogers Video. Now, in my current location, I have a small private guy just across the alley from me who is great...great selection, easy to use, mostly in-stock, good price.

[Dr. Quasius]

Can we get a "Doom" image, please?

Here you go frog:

http://i43.tinypic.com/28lutrs.jpg

[Inspector Fowler]

I didn't realize Netflix and Gamefly were linked, at least in some kind of business sense, until I noticed the Gamefly ads in my Netflix sleeves.

Then I was confused, because the two services are 100% opposite to me. Netflix has a huge inventory, fantastic turnaround time, great customer service, and fair pricing. Gamefly has...none of this.

Blockbuster can go away, no problem. This actually gives the mom and pop stores a chance, because there will still be a need for an instant gratification rental outlet. Netflix is awesome and on the shiftwork I do I use the hell out of it. But there is still something to be said about your buddies coming over and renting a spur of the moment movie and ordering some pizza. A lot of people (as in, the bulk of the US) don't stream Netflix movies to and even those that do (I love it) get a little weary of the poor selection of films.

[johnperkins21]

The last few times I went into a Blockbuster, I was turned away by the long line. The Blockbuster by me is apparently doing pretty well, at least on the weekends when I would stop in.

I would love to see a return to more mom and pop stores, as I agree that there is still a market for a brick and mortar movie/game rental service.

[Badger]

From what I can gather, Blockbuster UK is still doing ok. I think a lot of the profit is the games side though, my local still takes regular profit on consoles, new releases and trade-ins alike. Obviously if the global corporation dies then it won't be Blockbuster anymore but I'm fairly confident another company will pick up the reigns and carry on in its place. The games side has changed management between different companies every other year anyway.

[Vandabo]

As far as a market for spur of the moment rentals, don't those movie vending machines that they have in every other store (even McDonalds FFS) fulfill that need? Of course they aren't going to have any kind of selection, but if you want to just go grab the most recent comedy or action movie they would probably work.

I always dreaded going to movie rental places with a group of friends, because we would spend 45 minutes looking around, and then usually end up with something crappy. Nowadays I try not to go into a rental place unless I know what I want going in. Otherwise it's just a waste of time.

[Ox]

I would love to see a return to more mom and pop stores, as I agree that there is still a market for a brick and mortar movie/game rental service.
I understand if this is just a political preference, but as a consumer, I'm not exactly thrilled by mom-and-pop video rental stores. Their selection is, if anything, worse than BB, and prices are often higher. I mean, B&M = limited storage space = crappy selection and high prices. It's not like BB became a behemoth by coming into towns and offering a worse product than the mom-and-pops who got driven out of business.

[Wilkz07]

...but...but...but what about Canflix and Zip.ca? ;) (both sub-par services in my mind)

Personally, I haven't been to a Blockbuster in years. Never even had an account. Always went with Rogers Video. Now, in my current location, I have a small private guy just across the alley from me who is great...great selection, easy to use, mostly in-stock, good price.

never heard of canflix... if its even realz :)
I did a trial of zip.ca and didn't care for it. i still like going into the store when i want and having selecting i can look through on a shelf instead of digital.. so do a lot of people.

i'd switch to online renting if it was cost effective.

[Xerxes]

They should have been reducing physical locations and beefing up there online situation long ago. I pass like 4 blockbusters on my 20 minute drive to work. I thought the drop off at the store to get your next movies sent to you sounded like a good deal. They tried a few things but I think they just moved to slow.

They could of shut down several stores in a area and had movies being sent out from distribution centers in the nearest city.

[Narradisall]

I'm not sure how much their online side makes versus the B&M side. I can only guess they'd move to online and either totally close the B&M or significantly reduce the number of locations.

As for the second part, I wouldn't necessarily do that. If their B&M side were to go into liquidation and liquidation companies were to take over with selling and keeping track of merchandise you'll be getting constant collector calls probably because they will have your info.

Meh, I'll wait then.

Liquidation companies wouldn't bother me though. Lots of effort for some free games though.