Blockbuster Busted?

March 5, 2009 — Will Blockbuster Inc. be the next new face on the bankruptcy soup line?

Link: http://hometheatermag.com/news/030509blockbuster/

:cool::cool:

means theyll take gamestation with them which isnt a bad thing

Another unfortunate victim of the tanking US and global economy.
I’m at work and unable to open the link provided, but with a little snooping it seems that BB may be headed for chapter 11 (a re-orginizational bankruptcy) with the hopes of a viable business on the other side.
Let’s hope it’s not the chapter 7 (liquidation) variety bankruptcy.

Sadly, this momentum toward business failures will accelerate with the proposed deficit spending and tax liabilities that will continue to be imposed on business, capital gains, income tax and virtually any investment vehicle.

Yes, we do need government intervention, just not the kind being proposed/imposed
The government needs to get the hell out of the way.

They’re so doggone expensive, how can they not make money? They rent the same $20 video 5x @ 6 bucks a throw and then sell it used for $10. That’s 100% margin at least! Somebody at the top is getting rich and all the poor slobs working the front desk and re-shelving videos are going to get screwed.

Of course, it might be all the freaks that pay them $20 a month for online rental and then turn over 10 or 15 DVDs a month using the burn & return method.

Work has you filtered hey, Gotta stop surfing those bad sites. :bigsmile:

:cool::cool:

[QUOTE=platinumsword;2233229]Work has you filtered hey, Gotta stop surfing those bad sites. :bigsmile:
:cool::cool:[/QUOTE]
Curses!..snagged again…:stuck_out_tongue:

[QUOTE=Icy Mt.;2233195]

Of course, it might be all the freaks that pay them $20 a month for online rental and then turn over 10 or 15 DVDs a month using the burn & return method.[/QUOTE]

None of us would ever dare do that!:disagree::stuck_out_tongue:

[QUOTE=Icy Mt.;2233195]They’re so doggone expensive, how can they not make money? They rent the same $20 video 5x @ 6 bucks a throw and then sell it used for $10. That’s 100% margin at least! Somebody at the top is getting rich and all the poor slobs working the front desk and re-shelving videos are going to get screwed.

Of course, it might be all the freaks that pay them $20 a month for online rental and then turn over 10 or 15 DVDs a month using the burn & return method.[/QUOTE]

It what I sometimes call “Paramount Vs 20thCentury Fox effect”

Let me tell you some ancient history, back in the distant dark early days of VHS both movie studios decided to start selling their previous releases on VHS tape… there the story divides.

20th Century fox decided to maximise profits on each sale and to that end
priced their Star Wars movies at $79.95 per tape, people actually paid that price… then Paramount offered the Star Trek movies for $19.95…

bear in mind that to produce a VHS tape cost about $1.25.

Care to guess who made more money?

By a factor of ten?

BlockBusters rising prices are WHY they are losing money.

Economic reality: You charge more than your competition
OR provide less service for the same money and your customer
base disappears like a fart in a hurricane.

The amusing thing is that the MBA’s that run those buisnesses
are actually suprised when they do it to themselves.

AD

[QUOTE=AllanDeGroot;2233600]It what I sometimes call “Paramount Vs 20thCentury Fox effect”

Let me tell you some ancient history, back in the distant dark early days of VHS both movie studios decided to start selling their previous releases on VHS tape… there the story divides.

20th Century fox decided to maximise profits on each sale and to that end
priced their Star Wars movies at $79.95 per tape, people actually paid that price… then Paramount offered the Star Trek movies for $19.95…

bear in mind that to produce a VHS tape cost about $1.25.

Care to guess who made more money?

By a factor of ten?

BlockBusters rising prices are WHY they are losing money.

Economic reality: You charge more than your competition
OR provide less service for the same money and your customer
base disappears like a fart in a hurricane.

The amusing thing is that the MBA’s that run those buisnesses
are actually suprised when they do it to themselves.

AD[/QUOTE]

:bow::bow:

I agree one hundred percent. Raising your prices only serves to drive customers away. Its why I don’t go to the movies either anymore. At 11 bucks a person you would have to be crazy. They need to take some of those business classes they took back in college seriously. The customers percieved value is way more important than profit margins. If the customer thinks they are getting ripped off, they aren’t going to pay.
BTW, I never really like BB they charge too much. Especially on new releases. And you only got them for two days to boot. I think its time a lot of businesses re-evaluate some of their policies. Customer service should be at the top of their list.

The price break calculations are rather simple; you don’t need an MBA to figure them. If I have $1 in cost per unit, then I can sell 1 unit at $10 and make $9 or I can sell 2 units at $5.50 each and make $9. I have a hard time paying $20 a unit, even for a brand new copy of Terminator 2. However, I’ve been buying up used DVD’s at Blockbuster on their 2 for $20 or 3 for $25 deals for years.

Unfortunately for “Big Media” there is an elephant in the room that they don’t want to discuss(or they try to shoot with a BB gun). The average consumer is no longer required to pay for crappy service, crappy movies, or crappy music, delivered in a crappy format dictated by the seller. I, like many others, have a home theater that rivals the local cinema, minus the idiots on their cell phones and the overpriced snacks (and I can have a beer). I also have a personal media player that allows me to carry scads of entertainment in my pocket. No more stacks of CDs strapped to the visor of my car or making jam CDs so I can listen to the songs I want to hear.

Finally, after making the investment in the hardware, all of this is available for free or nearly so, with a small amount of technical knowledge. So, it’s either change your model or lose your business. I have no doubt that the executives at Netflix are fully aware that their customers are burning and returning. A simple sort of their computerized statistics would tell them that. Of course, they don’t care. They have no brick and mortar investment like Blockbuster and have gone so far as to stream their product online so that they don’t even need to pay postage or have a warehouse full of plastic discs. iTunes doesn’t seem to be having a problem making money but I don’t even know if there’s still a record store in the local mall.

Change or die. Right now, without getting up, I can download the new U2 album or the Eagle Eye movie , burn it to a disc, store it on my Zune or stream it to my audio/video system. I am willing to pay somebody a couple of bucks to do that easily [I]and [/I]legally but not much more (neither are worth much more, IMO). You better make it very easy because a lot of people don’t care whether it’s legal or not if it’s cheap, easy, and they have little chance of getting caught.