Post by xtra on Sept 16, 2009 10:34:06 GMT -6
Anyone that has rented from Blockbuster has been taken for a ride at one time or another.
Did you know that Blockbuster makes much much more on late fees and videos not returned than actually renting out movies?
When I was a member I always had fantom late fees and mysterious disappering videos that I never rented. About 3 times Blockbuster billed and accused me of not returning their videos and wanted their money, after face to face meetings they dropped it. I never rented these movies and they said ok. Now, if they really thought I stole them they would have cancelled my membership, contiued to bill me and send me to a bill collector and call the cops. But they never did, they just dropped it....You know they just made it up. My step brother worked there for years cuzz he loves movies, I asked him about this and ALL the mysterious late fees, he never really answered me except to say that they made lots of mistakes.
I remember about 7 years ago Blockbuster got caught in a class action suit for billing bogus late fees. I got about 7 coupons for free movies with short experation dates and other exceptions (no new movies, no weekend movies etc.) But this doesnt make it right, I know I was probably billed over 100 bucks in about 6 years.
I finally got tired of explaining that my movies were never late and I never rented that movie out.
What was wrong with these morons??
I think they were just crooks and the managers got % of nightly profits above a certain point.
but, they are going under.......just look at the comments, this is NOT HOW YOU RUN A BUSINESS.
finance.yahoo.com/tech-ticker/article/331218/Blockbuster-Closing-Hundreds-More-Stores-Than-Planned?tickers=bbi,nflx,cmcsa,twc,goog
Tough Times for Blockbuster
Posted Sep 16, 2009 07:29am EDT by Chris Nichols in Electronics, Internet, Media, Products and Trends
Related: bbi, nflx, cmcsa, twc, goog
Considering the recession and fickle consumer tastes, these are awfully difficult days to be a retailer. For video chain Blockbuster, already no stranger to tough times, it just keeps getting harder.
With the rise of competitors such as movie-mailer Netflix and Redbox, whose flick-dispensing machines can be found in grocery stores all over, Blockbuster is being forced to reset, saying it may close nearly 1,000 stores by the end of 2010 as its once-certain dominance continues to be threatened by rivals.
According to a regulatory filing Tuesday, Blockbuster expects to shut between 810 and 960 locations by the time next year wraps up, a number that would exceed more than one-fifth of its current U.S. shops.
That's quite a step up, or back depending on your perspective, from Blockbuster's previous plan, which anticipated 380 to 425 closings in that time frame. Here's how the corporate office sees it: Blockbuster characterizes 35% of its stores as "core," while saying 47%, or nearly half its total, are profitable, but still "non-core." The remaining 18% aren't turning a profit.
Ugh. That about sums it up at this point. Earlier this year, there were worries that Dallas-based Blockbuster might have to consider bankruptcy before it diffused that crisis. How about 2008, though? Another close call. Back then, it looked at a merger with Circuit City -- the electronics seller that did end up bankrupt. Now, store shutdowns.
The company's filing with regulators show that it's taking a multifaceted approach to its future offerings. Currently, it has 4,356 domestic stores, of which 606 are franchised. With those brick-and-mortar sites it battles against Hollywood Video and others. In addition to shrinking overall, Blockbuster expects to have more of its stores be the smaller city-based variety, with fewer large structures.
Meanwhile, Blockbuster's Total Access service, with 1.6 million subscribers, has a way to go before it can match the 9.4 million users Netflix claimed at the end of 2008. That makes it the undisputed leader of the 12 million-strong estimated market. Not surprisingly, Blockbuster hopes to grow its own base, and with Americans always looking for convenience -- walking to the mailbox beats driving to the store any day -- perhaps it can.
(If you need more evidence of diverging paths, consider that Netflix saw its revenue go from $682 million in 2005 to in excess of $1.3 billion in 2008. Blockbuster is still bigger in that regard, with sales of some $5.3 billion last year, but that was down from almost $5.9 billion in '05. Growth, of course, is what you want, not backsliding.)
How about rental boxes? Right now, Blockbuster has just under 500 dispensers, and it foresees expanding that a whopping five-fold by the end of this year. Then it's really going to crank up the buildout, envisioning 10,000 by the middle of 2010. Even so, Redbox already claims more than 15,000 units today, and you can be sure more are on the way.
Finally, Blockbuster hopes its On Demand offering, where it goes against the likes of Comcast and Time Warner Cable, will ultimately have a presence "in nearly every connected device." Again, doable, but also again, no easy task.
Can Blockbuster solve these riddles? Sure. Trouble is, even if it does, it might soon find itself facing new competition from another front you might have heard of -- YouTube, which has reportedly had discussions with a number of big studios about streaming movies via subscription.
What a difference, indeed.
*
1611 Comments
ber 15, 2009 06:01PM EDT
Oh......but didn't Helicopter Ben say today that, "The Recession is likely over"? He didn't get it right then, and he got it wrong today.
report abuse
you
Yahoo! Finance User - Tuesday September 15, 2009 06:21PM EDT
It is a deflationary crash. Money supply is shrinking. It is getting harder and harder to earn money. Credit has inflated for 50 years. It is going to deflate. If money supply shrinks 50%, expect that businesses will make 50% less. Many will go bust. www.tradingstocks.net/html/financial_crisis.html
report abuse
you
"Polski" - Tuesday September 15, 2009 06:53PM EDT
Six months ago this untrained Investor, told his "Expert" Financial advisor, not to get into Games, Tech, Entertainment, Radio, TV, & Airlines, now, What does Blockbuster, with all their Fundamental analysis, know that I did not know? Or, my advisor? How long had BB been examining the Market, and not passing this information to the Pundits, but, has been showing "Earnings", Up? Get out of the Market for 5 years, then, when it gets back to 12K, invest, but, then it is too late? As a consumer have been cutting back 20%/yr, for the last five (5) years, now have $100K Equity, saved! Where to invest?
report abuse
you
trex_socal - Tuesday September 15, 2009 06:54PM EDT
Time to CHANGE. Keep up with technology and HOPE you can survive.
report abuse
you
"Polski" - Tuesday September 15, 2009 07:05PM EDT
As we are trained, like Pavlov's dog, Entertainment, is a placebo- escape, as seen in the Astaire/Rogers movies of the 30's. When the consumer/market starts to Rally, instead of relying on mental narcotics, to alieve the pain, he starts to get his priorities in line, and goes for Food, HealthCare, and Shelter.
report abuse
you
Superman - Tuesday September 15, 2009 07:12PM EDT
Blockbuster has a tired business model that can no longer compete with on-demand video services, Internet, etc. They are essentially (maybe a poor analogy, but I will go with it anyway) selling Atari's to people that already use Macs. I laugh every time I drive by our local store..it's usually quite empty from the looks at the parking lot. A really poor investment if you're long.
report abuse
you
markhamclass - Tuesday September 15, 2009 07:17PM EDT
This artcle does not tell the whole story... BBI is cutting cost and stream lining... BBI is creating a complete product delivery system, may I suggest you check out the blockbuster website and link to X-men orgins.. Please note on the right side of the screen all the options to watch/purchase the DVD... Buy DVD online for mail delivery Rent DVD for Mail Delivery Rent Online to Watch online Buy Online for Download Rent/reserve In Store
report abuse
patty013
patty013 - Tuesday September 15, 2009 07:21PM EDT
Blockbuster is losing the battle because of their old business model. I've tried Blockbuster and now Netflix and Netflix wins hands down! The future for movies is the ability to show them instantly. Netflex already does that with 20,000 titles available to view instantly on your computer or on your TV! When I had a Blockbuster account I was always emailing them and asking where the movies were that I ordered by mail. Not so with Netflix - they are sent out instantly and I receive most of them the very next day! They are constantly asking me how the picture and sound were on my instant movies - they are out to please and it shows!
report abuse
patty013
patty013 - Tuesday September 15, 2009 07:22PM EDT
Blockbuster is losing the battle because of their old business model. I've tried Blockbuster and now Netflix and Netflix wins hands down! The future for movies is the ability to show them instantly. Netflex already does that with 20,000 titles available to view instantly on your computer or on your TV! When I had a Blockbuster account I was always emailing them and asking where the movies were that I ordered by mail. Not so with Netflix - they are sent out instantly and I receive most of them the very next day! They are constantly asking me how the picture and sound were on my instant movies - they are out to please and it shows!
report abuse
you
Superman - Tuesday September 15, 2009 07:27PM EDT
Mark, that may be true. But they have a bunch of brick and mortar (leases) to unload and that ain't cheap to do. Factor in severance for the laid off, excess inventory that has to be marked down and liquidated at a loss, and you have a train wreck, my friend. There are better places to invest one's cash.
report abuse
you
Yahoo! Finance User - Tuesday September 15, 2009 07:40PM EDT
Blockbuster has always been a thorn in my side......They moved into our town years ago renting VHS movies ( remember those?) I have seen its decline over the past ten years............The 16 year old " manager" of the store doesn't have a clue on how to treat their customers. Time and time again I have been charged for Un-returned DVD's, which in fact were returned. They are rude. They are basically a dinasaur in the business and will soon default unless they get someone in there at the helm to make some serious innovative changes.
report abuse
you
Joseph - Tuesday September 15, 2009 08:08PM EDT
Their customer service is terrible. They make absolutely no attempt to go above and beyond to appease their customers. There are other options, so I just stopped spending money there. Blockbuster has been abusing me for years. I've been associated with them for 17 years and, as a paying customer for 17 years, they have repeatedly treated me like crap. Even the store manager treated me like my business meant nothing to him. Netflix is equally awful though. New release movies are wait-listed for months. Redbox is the place to go.
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Yahoo! Finance User
Yahoo! Finance User - Tuesday September 15, 2009 08:10PM EDT
Seems to me you can download what ever you want to watch anyway. Even before it hits the stores. Rentals are a way thing of the past.
report abuse
you
Khan - Tuesday September 15, 2009 08:10PM EDT
I worked for Blockbuster one summer, and they tried to turn their stores into a "destination", with candies, and games, and a clean cut family friendly image (how I hated saying "hi" to people as they walked into the store, and how annoyed people were that I did). But they never got the calculation that people just want to rent a movie and leave. Nobody wanted to hang out at a video store, no matter how clean and "adult movie" free. Thinking they were better than other stores, they charged more, allowed for shorter rental times, and had fewer copies of movies people wanted. They banked too much on the experience and not on the actual inventory and making it affordable. That's why their business fell apart.
report abuse
you
Robby D - Tuesday September 15, 2009 08:10PM EDT
As long as I get my free burger from TGI Fridays, I'll be happy.
report abuse
Yahoo! Finance User
Yahoo! Finance User - Tuesday September 15, 2009 08:11PM EDT
Seems to me you can download what ever you want to watch anyway. Even before it hits the stores. Rentals are a way thing of the past.
report abuse
you
girl4uga@att.net - Tuesday September 15, 2009 08:11PM EDT
THANK GOD I INVESTED IN REDBOX...
report abuse
AnnetteB
AnnetteB - Tuesday September 15, 2009 08:12PM EDT
Blockbuster has horrible in store customer service and always has. I have Netflix but occasionally we rent from Blockbuster. We were in there Sunday night and waited 10 minutes while three employees conversed and generally ignored us until my husband was about to walk out and then one of them came over and said "oh sorry about the wait". There was only three customers in the entire store at a major intersection in a major Midwest city.
report abuse
Katie
Katie - Tuesday September 15, 2009 08:14PM EDT
Redbox put all the local movie stores in my area out of business.
Did you know that Blockbuster makes much much more on late fees and videos not returned than actually renting out movies?
When I was a member I always had fantom late fees and mysterious disappering videos that I never rented. About 3 times Blockbuster billed and accused me of not returning their videos and wanted their money, after face to face meetings they dropped it. I never rented these movies and they said ok. Now, if they really thought I stole them they would have cancelled my membership, contiued to bill me and send me to a bill collector and call the cops. But they never did, they just dropped it....You know they just made it up. My step brother worked there for years cuzz he loves movies, I asked him about this and ALL the mysterious late fees, he never really answered me except to say that they made lots of mistakes.
I remember about 7 years ago Blockbuster got caught in a class action suit for billing bogus late fees. I got about 7 coupons for free movies with short experation dates and other exceptions (no new movies, no weekend movies etc.) But this doesnt make it right, I know I was probably billed over 100 bucks in about 6 years.
I finally got tired of explaining that my movies were never late and I never rented that movie out.
What was wrong with these morons??
I think they were just crooks and the managers got % of nightly profits above a certain point.
but, they are going under.......just look at the comments, this is NOT HOW YOU RUN A BUSINESS.
finance.yahoo.com/tech-ticker/article/331218/Blockbuster-Closing-Hundreds-More-Stores-Than-Planned?tickers=bbi,nflx,cmcsa,twc,goog
Tough Times for Blockbuster
Posted Sep 16, 2009 07:29am EDT by Chris Nichols in Electronics, Internet, Media, Products and Trends
Related: bbi, nflx, cmcsa, twc, goog
Considering the recession and fickle consumer tastes, these are awfully difficult days to be a retailer. For video chain Blockbuster, already no stranger to tough times, it just keeps getting harder.
With the rise of competitors such as movie-mailer Netflix and Redbox, whose flick-dispensing machines can be found in grocery stores all over, Blockbuster is being forced to reset, saying it may close nearly 1,000 stores by the end of 2010 as its once-certain dominance continues to be threatened by rivals.
According to a regulatory filing Tuesday, Blockbuster expects to shut between 810 and 960 locations by the time next year wraps up, a number that would exceed more than one-fifth of its current U.S. shops.
That's quite a step up, or back depending on your perspective, from Blockbuster's previous plan, which anticipated 380 to 425 closings in that time frame. Here's how the corporate office sees it: Blockbuster characterizes 35% of its stores as "core," while saying 47%, or nearly half its total, are profitable, but still "non-core." The remaining 18% aren't turning a profit.
Ugh. That about sums it up at this point. Earlier this year, there were worries that Dallas-based Blockbuster might have to consider bankruptcy before it diffused that crisis. How about 2008, though? Another close call. Back then, it looked at a merger with Circuit City -- the electronics seller that did end up bankrupt. Now, store shutdowns.
The company's filing with regulators show that it's taking a multifaceted approach to its future offerings. Currently, it has 4,356 domestic stores, of which 606 are franchised. With those brick-and-mortar sites it battles against Hollywood Video and others. In addition to shrinking overall, Blockbuster expects to have more of its stores be the smaller city-based variety, with fewer large structures.
Meanwhile, Blockbuster's Total Access service, with 1.6 million subscribers, has a way to go before it can match the 9.4 million users Netflix claimed at the end of 2008. That makes it the undisputed leader of the 12 million-strong estimated market. Not surprisingly, Blockbuster hopes to grow its own base, and with Americans always looking for convenience -- walking to the mailbox beats driving to the store any day -- perhaps it can.
(If you need more evidence of diverging paths, consider that Netflix saw its revenue go from $682 million in 2005 to in excess of $1.3 billion in 2008. Blockbuster is still bigger in that regard, with sales of some $5.3 billion last year, but that was down from almost $5.9 billion in '05. Growth, of course, is what you want, not backsliding.)
How about rental boxes? Right now, Blockbuster has just under 500 dispensers, and it foresees expanding that a whopping five-fold by the end of this year. Then it's really going to crank up the buildout, envisioning 10,000 by the middle of 2010. Even so, Redbox already claims more than 15,000 units today, and you can be sure more are on the way.
Finally, Blockbuster hopes its On Demand offering, where it goes against the likes of Comcast and Time Warner Cable, will ultimately have a presence "in nearly every connected device." Again, doable, but also again, no easy task.
Can Blockbuster solve these riddles? Sure. Trouble is, even if it does, it might soon find itself facing new competition from another front you might have heard of -- YouTube, which has reportedly had discussions with a number of big studios about streaming movies via subscription.
What a difference, indeed.
*
1611 Comments
ber 15, 2009 06:01PM EDT
Oh......but didn't Helicopter Ben say today that, "The Recession is likely over"? He didn't get it right then, and he got it wrong today.
report abuse
you
Yahoo! Finance User - Tuesday September 15, 2009 06:21PM EDT
It is a deflationary crash. Money supply is shrinking. It is getting harder and harder to earn money. Credit has inflated for 50 years. It is going to deflate. If money supply shrinks 50%, expect that businesses will make 50% less. Many will go bust. www.tradingstocks.net/html/financial_crisis.html
report abuse
you
"Polski" - Tuesday September 15, 2009 06:53PM EDT
Six months ago this untrained Investor, told his "Expert" Financial advisor, not to get into Games, Tech, Entertainment, Radio, TV, & Airlines, now, What does Blockbuster, with all their Fundamental analysis, know that I did not know? Or, my advisor? How long had BB been examining the Market, and not passing this information to the Pundits, but, has been showing "Earnings", Up? Get out of the Market for 5 years, then, when it gets back to 12K, invest, but, then it is too late? As a consumer have been cutting back 20%/yr, for the last five (5) years, now have $100K Equity, saved! Where to invest?
report abuse
you
trex_socal - Tuesday September 15, 2009 06:54PM EDT
Time to CHANGE. Keep up with technology and HOPE you can survive.
report abuse
you
"Polski" - Tuesday September 15, 2009 07:05PM EDT
As we are trained, like Pavlov's dog, Entertainment, is a placebo- escape, as seen in the Astaire/Rogers movies of the 30's. When the consumer/market starts to Rally, instead of relying on mental narcotics, to alieve the pain, he starts to get his priorities in line, and goes for Food, HealthCare, and Shelter.
report abuse
you
Superman - Tuesday September 15, 2009 07:12PM EDT
Blockbuster has a tired business model that can no longer compete with on-demand video services, Internet, etc. They are essentially (maybe a poor analogy, but I will go with it anyway) selling Atari's to people that already use Macs. I laugh every time I drive by our local store..it's usually quite empty from the looks at the parking lot. A really poor investment if you're long.
report abuse
you
markhamclass - Tuesday September 15, 2009 07:17PM EDT
This artcle does not tell the whole story... BBI is cutting cost and stream lining... BBI is creating a complete product delivery system, may I suggest you check out the blockbuster website and link to X-men orgins.. Please note on the right side of the screen all the options to watch/purchase the DVD... Buy DVD online for mail delivery Rent DVD for Mail Delivery Rent Online to Watch online Buy Online for Download Rent/reserve In Store
report abuse
patty013
patty013 - Tuesday September 15, 2009 07:21PM EDT
Blockbuster is losing the battle because of their old business model. I've tried Blockbuster and now Netflix and Netflix wins hands down! The future for movies is the ability to show them instantly. Netflex already does that with 20,000 titles available to view instantly on your computer or on your TV! When I had a Blockbuster account I was always emailing them and asking where the movies were that I ordered by mail. Not so with Netflix - they are sent out instantly and I receive most of them the very next day! They are constantly asking me how the picture and sound were on my instant movies - they are out to please and it shows!
report abuse
patty013
patty013 - Tuesday September 15, 2009 07:22PM EDT
Blockbuster is losing the battle because of their old business model. I've tried Blockbuster and now Netflix and Netflix wins hands down! The future for movies is the ability to show them instantly. Netflex already does that with 20,000 titles available to view instantly on your computer or on your TV! When I had a Blockbuster account I was always emailing them and asking where the movies were that I ordered by mail. Not so with Netflix - they are sent out instantly and I receive most of them the very next day! They are constantly asking me how the picture and sound were on my instant movies - they are out to please and it shows!
report abuse
you
Superman - Tuesday September 15, 2009 07:27PM EDT
Mark, that may be true. But they have a bunch of brick and mortar (leases) to unload and that ain't cheap to do. Factor in severance for the laid off, excess inventory that has to be marked down and liquidated at a loss, and you have a train wreck, my friend. There are better places to invest one's cash.
report abuse
you
Yahoo! Finance User - Tuesday September 15, 2009 07:40PM EDT
Blockbuster has always been a thorn in my side......They moved into our town years ago renting VHS movies ( remember those?) I have seen its decline over the past ten years............The 16 year old " manager" of the store doesn't have a clue on how to treat their customers. Time and time again I have been charged for Un-returned DVD's, which in fact were returned. They are rude. They are basically a dinasaur in the business and will soon default unless they get someone in there at the helm to make some serious innovative changes.
report abuse
you
Joseph - Tuesday September 15, 2009 08:08PM EDT
Their customer service is terrible. They make absolutely no attempt to go above and beyond to appease their customers. There are other options, so I just stopped spending money there. Blockbuster has been abusing me for years. I've been associated with them for 17 years and, as a paying customer for 17 years, they have repeatedly treated me like crap. Even the store manager treated me like my business meant nothing to him. Netflix is equally awful though. New release movies are wait-listed for months. Redbox is the place to go.
report abuse
Yahoo! Finance User
Yahoo! Finance User - Tuesday September 15, 2009 08:10PM EDT
Seems to me you can download what ever you want to watch anyway. Even before it hits the stores. Rentals are a way thing of the past.
report abuse
you
Khan - Tuesday September 15, 2009 08:10PM EDT
I worked for Blockbuster one summer, and they tried to turn their stores into a "destination", with candies, and games, and a clean cut family friendly image (how I hated saying "hi" to people as they walked into the store, and how annoyed people were that I did). But they never got the calculation that people just want to rent a movie and leave. Nobody wanted to hang out at a video store, no matter how clean and "adult movie" free. Thinking they were better than other stores, they charged more, allowed for shorter rental times, and had fewer copies of movies people wanted. They banked too much on the experience and not on the actual inventory and making it affordable. That's why their business fell apart.
report abuse
you
Robby D - Tuesday September 15, 2009 08:10PM EDT
As long as I get my free burger from TGI Fridays, I'll be happy.
report abuse
Yahoo! Finance User
Yahoo! Finance User - Tuesday September 15, 2009 08:11PM EDT
Seems to me you can download what ever you want to watch anyway. Even before it hits the stores. Rentals are a way thing of the past.
report abuse
you
girl4uga@att.net - Tuesday September 15, 2009 08:11PM EDT
THANK GOD I INVESTED IN REDBOX...
report abuse
AnnetteB
AnnetteB - Tuesday September 15, 2009 08:12PM EDT
Blockbuster has horrible in store customer service and always has. I have Netflix but occasionally we rent from Blockbuster. We were in there Sunday night and waited 10 minutes while three employees conversed and generally ignored us until my husband was about to walk out and then one of them came over and said "oh sorry about the wait". There was only three customers in the entire store at a major intersection in a major Midwest city.
report abuse
Katie
Katie - Tuesday September 15, 2009 08:14PM EDT
Redbox put all the local movie stores in my area out of business.