quote:

---

Mon Apr 6, 2009 4:39pm EDT

LOS ANGELES (Reuters) - Blockbuster Inc (BBI.N), the largest store-based U.S. movie rental chain, said the risk that it may not complete a deal to amend its credit facilities raises "substantial doubt" about its ability to continue as a going concern, according to a securities filing on Monday.

Blockbuster Chief Executive Office Jim Keyes warned investors last month that the company's financial statements and auditors' report likely would include reference to going concern risks until the loan amendments were completed.

The company reached an agreement last week with its remaining creditors to restructure a $40 million term loan due in August. Blockbuster had earlier obtained agreements with lenders under its existing revolving credit facility to amend and extend the facility through September 30, 2010.

The principle amount of the facility will be reduced to $250 million, and Blockbuster's creditors agreed to waive default. The amendments were set to close on May 11, the filing said.

"While we believe that...we will be in a position to close on the amended credit facility on or about May 11, 2009, there can be no assurance regarding these matters," the filing said. "The risk that we may not successfully complete this refinancing...raises substantial doubt about our ability to continue as a going concern."

Blockbuster reiterated on Monday its fiscal year 2009 forecast for lower worldwide same-store revenues compared with the fourth quarter of 2008.

The company operates 7,400 stores globally and had total debt of $780.9 million under its credit facilities and senior subordinated notes as of January 4, the filing showed.

Shares of Blockbuster closed up 1.2 percent, or 1 cent, at 88 cents per share on Monday on the New York Stock Exchange.

(Reporting by Gina Keating; editing by Carol Bishopric)

---

quote: Claude S. Ayakawa

---

It is very sad when various entertainment and computer vendors I had used including Tower Records, Circuit City, Comp USA have all closed.

---

Hmmmm, first it was the Waikiki Theaters, now this? I am seeing a definite pattern here. Claude is bad luck!
 

---

Posted by Claude S. Ayakawa (Member # 1401) on 04-08-2009, 07:48 PM:
 
Bad Luck?

Thankfully I still enjoy good health, a loving family and lots of wonderful friends, my photo career, my new HDTV, Blu Ray and my h u g e library of movies and all of you here at Film Tech

-Claude
 

---

Posted by Brad Miller (Member # 2) on 04-08-2009, 08:13 PM:
 
No, only bad luck to businesses that you patronize.
 

---

Posted by Mark Gulbrandsen (Member # 72) on 04-08-2009, 08:58 PM:
 
I don't think it would matter much... they'll just rent elsewhere. And at least around here there are lots of other rental places.

Mark
 

---

Posted by John Wilson (Member # 269) on 04-08-2009, 10:54 PM:
 
Fire sale at Claude's BluRay store.
 

---

Posted by Jesse Skeen (Member # 586) on 04-09-2009, 07:05 AM:
 
I've always boycotted Blockbuster because of their stupid no NC-17 policy. For a long time they were the major reason why more movies didn't get released with that rating; Wal-Mart's probably a bigger reason now. Last time I was bored and went looking around in a Blockbuster store, I was amused to see that they had the 'unrated' versions of all movies that were available that way (including the last American Pie sequel, which would have been rated NC-17 had it been rated) but they had an edited version of Lust Caution which was originally NC-17.

Looks like all their stores dumped VHS some time ago, so when they have the big going-out-of-business sale it won't even be worth looking for old rare stuff.
 

---

Posted by Bobby Henderson (Member # 840) on 04-09-2009, 09:40 AM:
 
I doubt American Pie would have earned a NC-17 for the stuff that was included in the "unrated" version. Basically the "unrated" version is just a marketing scam. We've seen it repeated through numerous other movies. Dodgeball is another one that comes to mind. Stores like Blockbuster and Wal-Mart slowly figured out the difference and finally started stocking such movies while avoiding unrated movies that actually do stray into NC-17 territory.

I usually rent movies from Hastings Books Music & Video because they have a better selection of films than Blockbuster or Hollywood Video. They also stock NC-17/unrated movies Blockbuster and Hollywood Video won't carry. Not surprising, they've grown their selection of Blu-ray rental movies far faster than Hollywood Video and Blockbuster have managed. The only thing I dislike about Hastings is their stupid habit of cramming both discs of a 2 disc movie release into a single disc container. After all these years and many customer complaints they still have the idiotic practice in place. So I'll visit Hollywood Video for the 2-disc movie rentals.
 

---

Posted by John Wilson (Member # 269) on 04-09-2009, 06:28 PM:
 
Anyone in the Sydney area should check out fellow Film-Techer Michael Barry's fabulous DVD GALLERY in Double Bay.

If it's available on DVD, you'll find it there. He's done a great job.

As far as Schlockbuster's demise...I couldn't care less. As a general rule they are full of useless staff who know absolutely nothing about movies. As an example, I went looking to rent 'Raiders Of The Lost Ark' on DVD one night. I asked the dip behind the counter if they had it. Blank stare. Oh, I added (cringing) 'Indiana Jones and the Raiders Of The Lost Ark' thinking this would be what they know it as...or at least they would know 'Indiana Jones'.

His answer (amidst more blank looks as he punched into his computer)...

"Is that 'The Simpsons'?"

I kid you not.

I uttered not another word , turned and left the store.
 

---

Posted by Bruce Hansen (Member # 281) on 04-09-2009, 07:54 PM:
 
Blockbuster wants $5 per rental. That's way too much. Wallmart is renting DVDs for $1. Gee, I wonder why blockbuster is in trouble?
 

---

Posted by Mike Blakesley (Member # 26) on 04-09-2009, 11:29 PM:
 
Leave it to Wal-Mart to devalue something to the point that the public's perception of it is ruined.

If Wal-Mart needed to make money on DVD rentals like Blockbuster does, they would charge a reasonable price for them. As it is, Wal-Mart makes a killing on groceries (why do you think they're scrambling so hard to build a SuperCenter in every corner?) so they can use DVD rentals as a loss leader.
 

---

Posted by Lyle Romer (Member # 1266) on 04-10-2009, 09:38 AM:
 
I don't think Wal-mart is the devaluer in this case. It's more Redbox and those other vending machine rental things.

Personally I think the studios need to do something to disallow these $1 rentals as it is devaluing their product. I mean really, why buy a blu-ray or dvd if I can rent it for $1. I can rent it 16 - 30 times (depending on retail price) instead of buying it. Obviously these things can rent so cheap because they have no overhead cost and are just revenue sharing with the store that it resides in.
 

---

Posted by Chris Slycord (Member # 4239) on 04-10-2009, 10:59 AM:
 
Because the people who own and stock those $1 rental machines are buying a lot, lot more discs than we are.
 

---

Posted by Bobby Henderson (Member # 840) on 04-10-2009, 11:18 AM:
 
The obvious drawback with Red Box is those vending machines hold only so many movies. Title selection is limited and numbers of copies per title is also limited. Even if you reserve a copy online there's no guarantee a copy will be in a particular vending machine by the time you get there to retrieve it. You may be "S.O.L." if you want to rent a widescreen version of a new DVD release.

Red Box machines are popping up in many Wal-Mart locations in part because of the void left by Movie Gallery. It was one of the video store chains Wal-Mart incorporated into its stores, but went out of business not long ago.

McDonalds operates the Red Box business and has over 8000 vending machines installed at locations of McDonalds, Wal-Mart and a number of other grocery store chains.

To me, Red Box seems pretty convenient if you want to impulse rent a 2nd or 3rd choice movie after you found out the one you really wanted to see was not available. Trouble is you may be scanning down to 5th, 6th and 7th choices and grumbling to yourself about settling for Pink Pather 5 with Steve Martin. Yeah, it's only $1. But what are 2 hours of your life worth?
 

---

Posted by Adam Martin (Member # 641) on 04-10-2009, 02:05 PM:
 
Wrong.

When you rent a redbox movie online, you actually reserve (and pay for) a copy at a specific kiosk. All the kiosks are wired, so you can see online whether or not the movie you want is available and where. Once reserved, it's held until the due date.
 

---

Posted by Brad Miller (Member # 2) on 04-10-2009, 02:30 PM:
 

quote:

---

It's pure, sophisticated technical genius is what it is.

---

quote:

---

Sure your buck could've earned .000006381 cents in a money market account during those 5 hours, but imagine how much more relaxed you'll be knowing you have your movie waiting for you. That's worth the tension relieving power of a hot stone massage and an avocado facial. At least.

---

Hahaha It is always good to see a company with a sense of humor.
 

---

Posted by Claude S. Ayakawa (Member # 1401) on 04-10-2009, 06:20 PM:
 
I now have a system in place where I am pretty much assured to get my hands on Blu Ray copies of new films by being at a Blockbuster store to exchange my online rental discs I had watched with the new movies on the day they are released when the store opens. The possibility of Blockbuster going out of business is something I wish will not happen but I have to face the possibility of joining Netflix. If that should ever happen, no more new movies until my turn for them comes up in my queue at Netflix. I have started to look around for a local rental store and probably rent from one I had done business with before. The store is about five miles from my house and the cost for a two night rental is $4.00 for a Blu Ray or DVD. They have an excellent collection consisting of the GODFATHER trilogy, CASABLANCA, and many older movies as well as new movies all on Blu RAY . It is my intention to join Netflix if Blockbuster goes out of business and use Diamond Head video for movies I want to see right away on Blu Ray.

-Claude
 

---

Posted by Mike Heenan (Member # 392) on 04-10-2009, 07:46 PM:
 
What is this rush to see new films on Blu Ray/DVD the day it's released? Is it going to hurt someone to wait an extra day or two (or week)?
 

---

Posted by Cameron Glendinning (Member # 3516) on 04-10-2009, 08:03 PM:
 

quote: John Wilson

---

Anyone in the Sydney area should check out fellow Film-Techer Michael Barry's fabulous DVD GALLERY in Double Bay.

---

Yes it is a great collection, especially blu ray, but have you actually been or hired anything there recently? In my opinion Blockbuster seems to employ a far more intelligent and better trained staff than Michael does!

Have you ever been told that you are not the sort of person we want to to have on our books? This is when you return your weekly movies several weeks late?(and pay your late fees promptly) Now that never happens at Blockbuster or Video easy. Sure the 15 year old staff don't know much about the movies made before they were born.

I guess thats because most business like paying customers (I use to average $12 per week, every week since I joined).
I now spend that money on buying blu rays. Since the 10th of Feb my personal collection has grow, and Micheal still hasn't returned my call with an answer and is $96 poorer.

Personally I have never experienced ruder customer service than at the DVD Gallery.

EzDVD has given me a discount card! Its nice to know that my money is still wanted somewhere.
 

---

Posted by Claude S. Ayakawa (Member # 1401) on 04-10-2009, 08:23 PM:
 
There is no problem waiting to watch a rental movie if I can be assured I will get a copy that will not freeze up on me doing the middle of a movie because of inproper handling by previous users. This has happened so many times with discs others had watched that I had rented from Blockbuster and other rental outlets I had used. This is the reason I always make an effort to either buy a copy or be the first to watch a rental movie on DVD or Blu Ray that interests me.

-Claude
 

---

Posted by Brad Miller (Member # 2) on 04-10-2009, 10:25 PM:
 
Hmmmm, Claude is starting to sound like me when I received a used film print. Stupid idiot previous projectionists!

I feel your pain Claude.

That being said I have found a solution to the dilemma. I simply rip the DVDs or blu-rays to a hard drive, and if the rip is successful, I can then watch it on the tv direct from a laptop. No more getting to the last 20 minutes of a disc and the player locks up!
 

---

Posted by Bobby Henderson (Member # 840) on 04-10-2009, 11:01 PM:
 
What are you doing to rip a Blu-ray movie? Shit, I can't even get a straight answer on how to get a decent screen grab for Photoshop fun. It's possible with 1080p Apple Quicktime movie trailers. But not so easy with Blu-ray. Maybe Apple allows it because of all that totally ass-tastic severe lossy compression on their 1080p movie trailers. Yeah. 1080p can look "digital perfect" running at a bit rate of only 9 million bits per second. Nevermind the source stream has a bandwidth 150 times that level.

Regarding rental Blu-ray discs, I always inspect the playing surface before putting it in my PS3. Any oily finger print smudge will be enough to cause the disc to fail to load.
 

---

Posted by Claude S. Ayakawa (Member # 1401) on 04-11-2009, 03:24 PM:
 
Bobby,

I never had too much trouble with discs that were smudged. The problem I have noticed with used rental discs especially those that have been in circulation for awhile have been surface scratches. There is usually no problem if the scratches are fine but I have noticed discs that had severe scratches. that should have been taken out of rental circulation.

Brad,

Like film prints, You are right about the idiots who do not handle brand new rental discs. with proper care. Like the video rental slogan BE KIND-REWIND, there should be a slogan something like BE KIND -NO SMUDGE-NO SCRATCH but even if they did, I do not think it will be effective because many people do not care about the next person who will rent a disc after he or she had watched and trashed it. So Sad

-Claude
 

---

Posted by Bobby Henderson (Member # 840) on 04-11-2009, 04:14 PM:
 
I think some people have the retarded notion they can keep doing stupidly abusive things to discs because Blu-ray has a "scratch resistant surface." The discs can still be scratched.

Some people have the habit of laying bare discs out on tables and other surfaces rather than keeping the discs in the cases. I've seen people stack bare discs on top of each other. Both habits are stupid. I expect that sort of thing from children and teenagers. Any adult should know better than to pull that crap.

Nevertheless, I see video store personnel handling Blu-ray rental discs in this very manner. I saw store clerks doing this at our local Hollywood Video location. To top it off, I'm pretty sure they keep the actual rental discs stored in paper sleeves behind the counter, obviously an attempt to fight disc theft. They're keeping the discs in some sort of thin thing like that; it just looks like paper. Unfortunately those sleeves scratch the playing surface of optical discs.

Does anyone else dislike those CD/DVD disc holding "albums" with all the plastic sleeves? One of my coworkers has all his DVDs and CDs stored in those things. And he wonders why his discs end up ruined. Those things scratch the hell out of discs. I will never place a store bought disc of any kind into such a damaging product. Maybe it's not such a big deal to put some cheap CD-R dubs into those plastic sleeves as long as you have the original retail CD stored safely and ready to make another copy when that CD-R gets ruined.

Lots of people were pretty annoyed with the "save the earth" paper packaging for Baraka. That packaging quickly disappeared. Maybe that might turn the original crappy cases into a collector's item. Now Baraka is available on Blu-ray in a standard blue plastic case.
 

---

Posted by David Stambaugh (Member # 1102) on 04-11-2009, 06:12 PM:
 

quote: Bobby Henderson

---

They're keeping the discs in some sort of thin thing like that; it just looks like paper. Unfortunately those sleeves scratch the playing surface of optical discs.

---

quote: Jesse Skeen

---

There's a particular scene, and you'll know it when you see it, that most likely would have gotten an NC-17.

---

quote: Jesse Skeen

---

In the past I've also seen them offer stuff like Andrew Dice Clay HBO specials, which aren't rated, but they wouldn't carry the theatrical movie "Dice Rules" which is just a filmed stand-up performance because that WAS rated NC-17 (for filthy words.)

---

quote: Bobby Henderson

---

Currently their standards are not logical or consistent.

---

You're making the assumption they have standards. The ratings are imposed by a group of mommies chosen by the MPAA and let loose on the movies. The ratings are whatever they want them to be at any given time, they aren't even meant to have standards.

The ratings, per the MPAA, are only an advisory to parents as to the suitability (in the MPAA's eyes) of the film for children. Where the MPAA really gets in trouble is when they conspire with theatres to enforce the ratings (which are only supposed to be a suggestion) and when various other entities make business decisions based on the ratings.

It is shocking the number of people who think the ratings are law, or have some legal backing. Hollywood can be really good at propaganda when it wants to be.
 

---

Posted by Bobby Henderson (Member # 840) on 04-14-2009, 09:30 PM:
 
Actually the MPAA ratings system is a little more insidious a system than anything else.

As I said earlier, major movie studios are largely the ones making the payroll for the MPAA. If a studio like Paramount releases a movie like Team America: World Police the MPAA will give Paramount very specific instructions on what to cut to allow the initial NC-17 rated judgment to get watered down to a more commercially friendly "R" rating. The MPAA does not afford that kind of courtesy to independent movie studios when submitting a movie like Orgazmo for ratings consideration.

Both movies previously mentioned were made by South Park creators Trey Parker and Matt Stone. They didn't get any guidelines on what they could do to avoid the commercially dreaded NC-17 on Orgazmo, just vague bullshit. They received very specific suggestions on what to cut with Team America: World Police, distributed by Paramount.

IMHO, the R-rated cut of Team America: World Police is more offensive than all of Orgazmo. But we know Orgazmo got stuck with a NC-17 rating while Team America: World Police played in theaters nationwide in a conveniently watered-down R-rated cut. The movie then featured the original NC-17 cut of puppets shitting and pissing on each other when it arrived on DVD. Aren't major studio releases great!?

The idea of anatomically neutral and inert puppets conjuring a NC-17 rating is actually a pretty hilarious statement against the absurdity of the MPAA itself.
 

---

Posted by Martin McCaffery (Member # 37) on 04-15-2009, 08:55 AM:
 
You get what you pay for
 

---

Posted by Adam Martin (Member # 641) on 03-02-2010, 10:26 PM:
 

quote:

---

Blockbuster Brings Back Late Fees

By : Erik Gruenwedel

Fiscally challenged Blockbuster has quietly re-instituted late fees on store-based movie rentals — with a capped rate.

Beginning March 1, the new-release movie rental period for $4.99 titles has been reduced to five days from seven days, with a $1 per day late fee assessed for up to 10 days thereafter.

The $1 daily fee also applies to one-day standard DVD, Blu-ray Disc and previously viewed rentals.

Previously, following the rental period, consumers were given a 10-day grace period and charged a $10 fee thereafter.

The Dallas-based rental chain late last week informed company-owned stores and franchisees, according to personnel contacted at local Blockbuster locations.

“The cool thing about it is that theoretically you could return a movie up to a year later and only be charged that $10,” said a local Blockbuster store employee, when asked about the changed policy.

Redbox charges $1 per day of rental (until 9 p.m. the following day, local time), plus tax, for up to 25 days, when it would consider the rental a purchase.

Blockbuster spokesperson Michelle Metzger downplayed the notion that elimination of the grace period represented a return to late fees.

Metzger said the additional daily rate is consistent with what the industry is “expecting” and in line with what Redbox charges. She said the new term is not like previous policies that also charged restocking fees.

She said 80% of Blockbuster rentals are new releases, with the average customer keeping rentals 4.7 days.

“If a customer is keeping a release out past the initial rental agreement, they are keeping that title away from somebody else,” Metzger said.

Nonetheless, the concept of late fees represents a dual-edged sword for Blockbuster, which is struggling to cut costs and generate revenue in order to implement a multiplatform distribution channel.

Netflix largely rose to prominence on a “no late fee” platform underscored by a monthly subscription program that actually benefited from titles not returned on a timely basis.

Blockbuster, under its previous management, relied heavily on uncapped late fees for incremental revenue — a stigma some critics harp about to this day.

“This is not a late fee. This is an additional daily rate and if the customer is choosing to keep out a movie past the due date, then they are going to charged [accordingly],” Metzger said. “If you keep a rental car out an extra day, the rental car company has to charge you.”

Indeed, following a fiscal quarter whereby it lost nearly $435 million in adjusted net income and had to revise downward fiscal year earnings and revenue projections, Blockbuster had to make changes, analysts said.

“At $1 per day, it’s very fair and comparable to what Redbox charges per rental,” said Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles.

Colleague Michael Pachter said that given Blockbuster’s financial situation, they had to come up with ways to generate revenue.

“Their [previous] pricing made no sense, and every little bit helps,” Pachter said.

---

quote:

---

Their [previous] pricing made no sense, and every little bit helps,” Pachter said.

---

quote:

---

DISH Network Agrees to Acquire Blockbuster Assets

ENGLEWOOD, Colo., April 6, 2011 /PRNewswire/ -- DISH Network Corporation (NASDAQ: DISH) announced that it was selected as the winning bidder in the bankruptcy court auction for substantially all of the assets of Blockbuster, Inc. DISH Network's winning bid was valued at approximately $320 million. After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, DISH Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur in the second quarter of 2011.

"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 for DISH Network," said Tom Cullen, executive vice president of Sales, Marketing and Programming for DISH Network. "While Blockbuster's business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster's brand as a leader in video entertainment."

Completion of the transaction is contingent upon satisfaction of certain conditions, including bankruptcy court approval.

---

 

---

Posted by Sam Graham (Member # 2889) on 04-06-2011, 01:38 PM:
 
Why, the new company could be called Dishbuster!

(Oh, wait...)
 

---

Posted by Mike Blakesley (Member # 26) on 04-06-2011, 02:23 PM:
 
Maybe Dish wants to set up one of those over-the-air streaming remote controlled DVD player movie rental farms. You know, to get around that nasty window.
 

---

Posted by Jesse Skeen (Member # 586) on 04-06-2011, 08:15 PM:
 
Wonder if they'll finally lift Blockbuster's ban on NC-17 movies? Dish has a bunch of softcore stuff on pay-per-view that Blockbuster probably wouldn't carry. I'd have one less reason to boycott them if that happened.

BTW there's a site called ihateblockbuster.com where you can read a lot of interesting stuff from people who've worked for the company. Seems like the people who've been running it the past few years have no clue what they're doing. I 'won' a Blockbuster gift card last year and had to search every store in the area before I found anything I wanted to buy- I don't rent movies anymore, so they should stock more for sale than rental. They've also been wasting a lot of store space with stuff that has nothing to do with the rest of their business; stuff that's advertised on infomercials. (Of course the kind of people who subscribe to Dish are probably the prime market for that kind of stuff!)
 

---

Posted by Chris Slycord (Member # 4239) on 04-07-2011, 05:37 AM:
 
I was driving to work along a different route than usual and saw a a Blockbuster that was closing. The sign specified that it was "This Location Only" to try to dispel the notion that the company as a whole is going down the crapper.
 

---

Posted by Emma Tomiak (Member # 1862) on 04-08-2011, 11:37 PM:
 
I had a giggle when I saw that same sign on one of our local stores...and then on the rest of them, too.
 

---

Posted by Joe Redifer (Member # 3) on 04-08-2011, 11:49 PM:
 
I'd go in and argue with them, then sue them for false advertisement and then retire.
 

---

Posted by Pravin Ratnam (Member # 1417) on 04-09-2011, 12:14 AM:
 
I got one of those Blockbuster closing sales and got a couple of used DVDs for 2 bucks each. Then I signed up for a two month 5.95 a month deal (11 per month after two months , at which I point I cancel) and for myu 12 bucks, I got a free used BluRay of my choice 12.99 or below, those 2 months of free rentals online, one at a time, with alternate store exchanges allowedm and a couple of free rentals from kiosks.

So I am getting my money's worth. I havent used BB in a long time and signed up for this only because I get to rent a lot of BluRays for what will be less than 1 buck a rental.

Oh, and if you have a GIFT CARD, BB is no longer honoring it because of the bankruptcy, at least in some stores. THe store near my house at this notice that as of 4/7, they stopped honoring gift cards.
 

---

Posted by Tom Petrov (Member # 1534) on 04-11-2011, 06:29 PM:
 
I don't know how BB keeps going on the way they do.

Wal-mart was selling Tron:LEgacy combo pack for $23.99 while BB was selling the same item for $34.99 on opening day for the title.
 

---

Posted by Monte L Fullmer (Member # 2797) on 04-13-2011, 08:50 PM:
 
Sounds like what AOL used to do in selling internet service - charge a lot higher rates where competition would offer cheaper, yet better services.
 

---

Posted by Adam Martin (Member # 641) on 04-23-2011, 11:38 PM:
 

quote:

---

Dish Keeping About 575 Blockbuster Stores

By: Erik Gruenwedel

Dish Network, new owner of bankrupt Blockbuster Inc., is keeping about 575 stores in operation while pulling the plug on another 1,100 stores, according to filings with U.S. Bankruptcy Court in New York.

Englewood, Colo.-based Dish, which acquired Blockbuster for $320 million in an auction sale April 6, didn’t disclose why the remaining stores would remain open.

In an April 16 court filing, Blockbuster submitted the addresses of about 572 stores it had attached cure amounts on outstanding lease payments due landlords and property owners. Several of the locations contacted by Home Media Magazine confirmed they were staying open.

In separate filings, Blockbuster disclosed the locations of hundreds of stores nationwide whose unexpired leases the Dallas-based rental icon rejected, effective April 17.

The decision to shutter more than 50% of its remaining stores comes just days after Blockbuster sought a three-month extension on the April 14 deadline for remedying outstanding lease agreements.

A Dish/Blockbuster representative was not immediately available for comment.

---

quote: Bobby Henderson

---

Are Netflix and Redbox going to make up for all the revenue taken in previously by the retail video store model?

---

quote: Tom Petrov

---

The future for renting is online. There is no doubt about this. In Canada, Netflix skipped the whole mail-in thing and went right to downloading.

---

The "future of" or whatever is besides the point. The push for moving everything to instant downloads and all that nonsense has potentially VERY BAD consequences for the entire entertainment industry. There is a lot of traditional business models of delivering movies, TV shows, etc. that are actually under threat by viewers bypassing the mechanisms that make the business profitable and sustainable.

The "future" of movie renting may indeed be in pay per view via cable/satellite and streaming from the Internet. Unfortunately, those systems don't bring in as much revenue as the old corner video store model did. Those new systems don't provide anywhere near as many jobs. That ultimately makes the new system a negative development in overall economics. You have a net loss of jobs and net loss of money made. The video rental market got turned into something smaller.

I believe TV broadcasting as we know it is threatened in the long term. I think the problem will really become noticeable within the next 3-5 years. The local news and weather is pretty important to a lot of people. But the local TV stations need a certain amount of ad money to survive. More and more people are using DVRs to time shift and skip over commercials. It's becoming easier to bypass the local stations and watch network shows whenever it is convenient. You don't see local ads when doing this, plus there are fewer ads. If this trend continues to grow it will eventually cause local TV stations to fail. It will further reduce the footprint of networks like ABC, CBS, etc. to where they're really no different than any other cable network.

Many newspapers are already in a death spiral from this trend. It is causing a lot of job losses in the printing and journalism fields. Amateur bloggers with no credentials and no accountability are replacing professionals who were paid and contributed to a tax base.

Of course, the movie industry is under threat by the same thing. The business community's goal of squeezing all the money possible out of a movie as fast as possible may mean squeezing the movie theaters out of the picture, which will then result in the movie industry itself being put in its own death spiral. TV, or at least some strange Internet form of it, will finally beat the movie industry.

Some people joke about how so many of the videos posted on YouTube are stupid and meaningless. Here's a warning, if some of the trends I see keep going on to an extreme, those YouTube videos will be all we'll have for entertainment. That, and perhaps some movies and TV shows produced by the Chinese state government.

 

---

Posted by Tom Petrov (Member # 1534) on 04-26-2011, 06:11 PM:
 
Bobby-Hanging on to the past is probably the worst thing a business can do. You need to invest and follow what people want.

Just imagine if Wal-Mart was still not selling groceries right now. Or if car companies were still not sold on having a least one hybrid. Or if a newspaper did not have an on-line edition. What if FedEx did not buy Kinkos or a trucking company to offer Ground.

Blockbuster issue was not that rentals declined, it was that Blockbuster did not see the shift in the way people rent.

Now look at Netflix, they have admitted that mail-in will not be around forever, at they are right, that is why they are moving into online rental.

As for economics, I am not an expert, but I believe investment spurs on new jobs not holding on to the past and the way thing were done.
 

---

Posted by Bobby Henderson (Member # 840) on 04-27-2011, 12:33 AM:
 

quote: Tom Petrov

---

Bobby-Hanging on to the past is probably the worst thing a business can do. You need to invest and follow what people want.

---

quote: Tom Petrov

---

Just imagine if Wal-Mart was still not selling groceries right now.

---

quote: Tom Petrov

---

As for economics, I am not an expert, but I believe investment spurs on new jobs not holding on to the past and the way thing were done.

---

quote: Tom Petrov

---

Just imagine if Wal-Mart was still not selling groceries right now.

---

Oh, yeah, that would be terrible. Thousands of jobs that are gone today would still exist. Buildings that now sit empty would have tenants who would be paying taxes, and all the other businesses that profit from a going concern would be making money. The tax base of hundreds of communities, including my own, would be higher.

Our own local grocery store would still have some competition, and probably would have more of a selection due to having more business. The small-town grocery store would have a chance to grow, instead of looking at a long, slow death.

I won't be surprised if our remaining grocery store will be gone in 10 years or less, thanks to Wal-Mart, and we'll then have to drive 45 miles to shop, using $5 or more per-gallon gas.

Not ALL change is good, Tom.
 

---

Posted by Michael Barry (Member # 237) on 04-29-2011, 09:01 AM:
 
The situation in Australia is quite unique.

We have nearly the same land mass as the USA, but with a population only 10% of its size. Therefore, the rental-by-mail business model doesn't enjoy sufficient economies of scale to survive.

Thus far, the remaining two (there used to be eight) rental-by-mail companies continue to post quarterly losses because the customer base simply cannot pay for the infrastructure required to service them. Each time the subscriber base grows, the operating costs balloon out of control and they run up even more red ink.

I keep wondering how many more millions they can afford to lose before they throw in the towel.

I think there's a place for video stores that other technologies can't currently supplant. Redboxes have a depressingly diminutive selection with pathetic copy depth - and they always will. They are cheap for a reason. Internet bandwidth cannot support Blu Ray levels of bandwidth for most households, and I don't know how long it will be before this can happen. Rental-by-mail can give you Blu Ray quality, but the mail doesn't deliver on weekends here when most people want movies. If there's a problem with your disc, you're screwed. With a store, just take it in for an instant swap. Netflix instant watch isn't Blu Ray quality. Once you're hooked on Blu Ray, it's pretty hard to go back. And why should you? Blu Ray is here, and the reality is simply that the internet cannot give you this today.
 

---

Posted by Tom Petrov (Member # 1534) on 05-05-2011, 08:51 PM:
 
Blockbuster Canada Goes Under

More than six months after its U.S. parent filed for Chapter 11 bankruptcy protection, Blockbuster Canada Co. has been placed into receivership, hammering what is perhaps the final nail into the coffin of the neighbourhood video store.

The Ontario Superior Court of Justice appointed consulting and accounting firm Grant Thornton Ltd. as receiver, according to documents filed Tuesday. Empowering it to “take possession of and exercise control over” Blockbuster Canada’s assets, Grant Thornton has effectively been given control over the film and video game rental chain’s more than 400 locations across Canada.

It will also be tasked with repaying the company’s debt, listed in filings to be in excess of $67 million, to major Hollywood studios such as Warner Bros., Twentieth Century Fox and Sony Pictures.

Grant Thornton and Blockbuster Canada did not return requests for comment.

Blockbuster locations were open on Thursday and can be expected to continue normal operations at least for the immediate future. The court ordered all Blockbuster staff to remain employed with the company “until such time as the receiver, on the debtor’s behalf, may terminate the employment of such employees.”

By the time the U.S. chain officially went bankrupt last September, rising competition from Internet-based competitors such as Netflix Inc. had reduced the company to a hollow shell of the once-massive media company championed by billionaire entrepreneur Wayne Huizenga. Blockbuster Inc. had less than 3,000 locations, down from a peak of more than 9,000, by the time U.S. satellite operator Dish Network Corp. placed a winning $320-million US bid for the company a month ago.

In Canada, Blockbuster has followed a similar, though slightly slower, path of decline.

Last year, the company closed five per cent of its locations, which it attributed at the time to business as usual.

“It is part of the regular course of business that we close stores every year,” Barry Guest, vice-president and general manager of Blockbuster Canada, said in an interview with the Financial Post in September, one day after the U.S. chain filed for Chapter 11.

“The (past store closures) were historically offset with opening new stores,” he said. “This year, they are not.”

Blockbuster’s Canadian business model is slightly different than that of the U.S. chain. Unlike in the U.S., Blockbuster Canada never offered rent-by-mail services, helping to avoid a direct confrontation with upstart rivals such as Netflix, which started life more than a decade ago

However, those minor difference have not been enough to stave off what some observers believe was the company’s inevitable collapse.

“It was only a matter of time before the Canadian operations of Blockbuster followed their American operations to bankruptcy,” said Carmi Levy, an independent technology analyst based in London, Ont. “We saw it coming and were simply counting the days.”

Read more: http://www.vancouversun.com/business/Blockbuster+Canada+goes+under/4735598/story.html#ixzz1LX5Xbu4Z
 

---

Posted by David M. Leugers (Member # 2968) on 06-13-2011, 12:51 AM:
 
There were three large Blockbuster locations no more that 5 miles from my house. They are all out of business. The boom and bust saga of video rental stores continues. Book stores are about the same...
 

---

Posted by Pravin Ratnam (Member # 1417) on 07-13-2011, 06:28 PM:
 
I got my money's worth from my two month trial membership at 5.99 per month. One free Bluray to keep. A couple of disc rentals to be used any time. And with the two month membership which included alternate in store exchanges with delivered discs, I got to watch TWENTY Blurays in two months.
About 50 cents per rental. I canceled the day the 2nd month expired.
 

---

Posted by Tom Petrov (Member # 1534) on 08-27-2011, 05:10 PM:
 
New Video Store opens

View full size

Photos (3)
Categories of movies for rent include new releases; nearly new; classic; favorites; standup comedy; kids; family; educational, sports and fitness; and Blu-Ray.
Family Video opened about 1-1/2 weeks ago in the former Blockbuster Video location in La Grange Park, according to employee Mary Viktora on Aug. 24.
Customers must show a driver's license and provide two telephone numbers to check out videos and games for rental.
Add your photos & videos

Family Video says its newest store in La Grange Park will offer cheaper rental prices than Blockbuster, which formerly occupied its space at 333 N. LaGrange Rd., and closed its doors in April.

“We’ll do a lot better,” predicted employee Mary Viktora said about the new video store that opened in mid-August. “We keep our store nice and organized. Our prices are a lot more reasonable.”

Prices range from free in certain categories up to $2.80 for new releases and $6 for certain video games.

A ribbon-cutting ceremony is scheduled at 10 a.m. today, Aug. 26, for Family Video and then for two other businesses—D’Dami Salon and Spa, and Village Potters—that previously opened in the Village Market shopping center.

“Our main goal is to make sure everybody leaves here happy,” Viktora said. If someone cannot find a video or game they are looking to rent, store employees are more than happy to call another Family Video to find it, she said. Nearby stores are in Westchester and two locations in Downers Grove, where Viktora previously worked.

That personal service, of finding particular videos and games and offering recommendations, is something that Redbox and Netflix cannot compete with, said Viktora. Plus, customers do not have to stand outside in a line to rent videos from Redbox machines, she said.

Family Video started renting videos in 1978 and has 735 stores, including 21 in the Chicago area, and in 19 states, according to its website, www.familyvideo.com.

No credit card is needed to rent videos and games, Viktora said. Just show a driver’s license and provide two telephone numbers.

For the first 30 days the store is open, customers can sign up to pay half the regular price for rentals, she said. Customers can renew their participation by paying $9.95 every 30 days.

Free rental always is offered for rental of educational, sports and fitness DVDs and films for younger children.

Films for older children and the family rent for $1 over five nights.

Other categories are “nearly new” movies that have been out for a while; television series; prequels, sequels and remakes to movies in current release or coming soon; classics; and standup comedy

And the “favorites” category includes movies such as “Grease” and “The Terminator.” About these particular rentals, she said, “If you don’t like it, we’ll exchange it for something else. We’re pretty sure you’ll like everything in this section.”

Certain videos are 2-for-one rentals. “We want to make sure people save as much as possible,” Viktora said.

BluRay movies also are for rent.

Some videos are for sale, but since the store is new, it probably will be a month or two before it starts selling movies currently on the rental shelves. Used videos are guaranteed for 30 days.

Games can be rented for Xbox 360, PlayStation 2 and 3 and Wii, with specials for another free game or movie rental.

Store hours are 10 a.m. to midnight every day of the year.

This has to be one of the worst ideas.
 

---

Posted by Mike Blakesley (Member # 26) on 08-28-2011, 09:54 PM:
 
It would have been a good idea 20 years ago.
 

---

Posted by Frank Angel (Member # 248) on 08-29-2011, 07:06 AM:
 

quote: Tom Petrov

---

That personal service, of finding particular videos and games and offering recommendations, is something that Redbox and Netflix cannot compete with, said Viktora. Plus, customers do not have to stand outside in a line to rent videos from Redbox machines, she said.

---

quote: Frank Angel

---

That's really way off the mark, at least about Netflix; that's EXACTLY what Netflix does and with pretty sophistocated logarithms

---

Are those logarithms with respect to any particular base? Because I'm not seeing the utility here.

Hint: you're thinking of the term "algorithm." Very different meaning.
 

---

Posted by Tom Petrov (Member # 1534) on 08-29-2011, 08:18 AM:
 
The end of a truly independent video store Read more: ]http://www.vancouversun.com/truly+independent+video+store/5277688/story.html#ixzz1WQK8REcP

Digital killed the video store. It's just the latest chorus in the continuing rewrite of the entertainment industry's tune, and it's one we've all heard after Blockbuster's bankruptcy auction earlier this year.

Yet, like most news stories, the headlines didn't really hit home.

I hardly ever went to Blockbuster. They seemed to pop up like canker sores on every major artery in the space of three years, filling their floor space with duplicate copies of Adam Sandler movies and refrigerators full of soda pop.

I always felt a little sticky after I left the store, and inevitably found myself spending huge dollars on late fees because I shuddered at the thought of going back to that blue and yellow sign backlit by ominously humming fluorescents.

Read more: http://www.vancouversun.com/truly+independent+video+store/5277688/story.html#ixzz1WQKCbMdF

As one store opens, another store closes. I am not going to miss video stores.
 

---

Posted by Justin Hamaker (Member # 2165) on 08-29-2011, 03:49 PM:
 
I can sense the melancholy in the article and from some of the posts in this thread. However, the death if video stores is different from the demise of the mom-and-pop stores after a Wal-Mart came to town.

Sure, Blockbuster and Hollywood Video were responsible for the death of some hometown video stores a few years back. But the big boys are dying just like the little guys because the consumer is changing.

Part of the reason consumers have embraced Netflix and video on demand services is because they offer a better experience for the consumer. When Netflix started, the appeal was having the DVD delivered to your mailbox and having the flexibility to return it whenever you finished watching - whether it was tomorrow or next month. This was a bigger factor for me than the price, because I was always winding up with late fees from the video store.

Much has been written about losing the ability to browse the racks at the video store, but I have found browsing the "digital racks" often offers a much more fulfilling experience. Besides being well organized, the suggestions from Netflix were usually right on the money based on my history of rating movies. And digital racks provide the ability to immediately offer suggestions by actor, director, genre, and so forth. Methods of organization that just aren't possible in a physical environment.

Yes, there is something to be said for losing the interaction of talking to other movie lovers as you looked for something to watch. But this apparently wasn't a big enough factor for enough consumers to support the business model of the brick and mortar video store.
 

---

Posted by Tom Petrov (Member # 1534) on 08-29-2011, 04:36 PM:
 

quote: Justin Hamaker

---

Yes, there is something to be said for losing the interaction of talking to other movie lovers as you looked for something to watch. But this apparently wasn't a big enough factor for enough consumers to support the business model of the brick and mortar video store.

---

quote: Michael Barry

---

However, a well-run video store, if well-stocked, should have no trouble holding their own since they have all the major advantages

---

quote: Justin Hamaker

---

As a consumer, I appreciate the quality of Blu-Ray, and it's what I'll pick when given a choice. But DVD quality is sufficient for most movie watching purposes - especially when watched on a Blu-Ray player or a player that up-converts

---

quote: Tom Petrov

---

A brick and mortar has absolutley no chance in todays marketplace. With instant downloading, mail-ins and $1 Rebox, a video cannot compete against this.

---

quote: Michael Barry

---

I'm not sure I understand your position. You mentioned downloading, but this isn't Blu Ray quality like you can get at a store. Then you said there's Redbox, but the selection is very small compared to even a modest video store. So the video store in your examples would seem to come out in front. Would you be able elaborate on your points a little, please?

---

quote: Aaron Garman

---

The point of free movies for kids is to drive families into the store. Kids get something free, and the adults pick up the new releases and other things. Trust me, the attach rate on those free movies was amazing.

---

quote: Jeff Kane

---

And don't mind waiting in line

---

I guess there are no lines at Blockbuster anymore... ....thats not what I remember when they used to be busy
 

---

Posted by Aaron Garman (Member # 1653) on 08-31-2011, 12:22 AM:
 
Free kids movies were offered long before Netflix caught on, and it works just the same now as it did then.

Blockbuster failed because they had terrible customer service, poor presentation, overbuilt, and operated under a business model that just was not sustainable. Family Video is privately run company that makes its customers first too, instead of yielding to a bunch of investors. And even IF their video store business fails, they have so many other ventures such as real estate that will keep the company profitable. Hell, they started as an appliance company and a small little video club.

They can co-exist with any web service.

AJG
 

---

Posted by Tom Petrov (Member # 1534) on 09-01-2011, 07:44 AM:
 
R.I.P. Blockbuster

TORONTO — Blockbuster Canada's remaining stores are set to close soon and 2,300 more jobs at the national movie rental chain are about to disappear, victims of the digital movie revolution.

The receiver in charge of selling Blockbuster Canada wants a court order to shut down the movie rental company's 253 remaining retail locations, saying Wednesday it had been unable to find a buyer willing to invest in the business.

There were a total of 14 offers submitted, including eight that contemplated acquiring all of Blockbuster Canada's assets, but all of them included conditions or other problems that weren't acceptable to the receiver.

About 150 Blockbuster Canada stores were closed in June, as it grappled with a shift to digital downloads, a tepid economy and new ownership of the U.S. Blockbuster chain which left the Canadian chain in debt.

A receiver's report filed with the court Wednesday said Blockbuster Canada had about 4,000 employees across the country before the earlier closure resulting in 1,505 lost jobs. The company had about 2,300 employees as of Aug. 31.

"As a result of the significant changes in Blockbuster Canada Co.'s competitive landscape, the company's 'bricks and mortar' business model has experienced significant challenges over the last few years, largely due to the proliferation of various alternatives available to media consumers in Canada," the receiver said in a statement issued late Wednesday.

The receiver said Wednesday the closure process should begin in the next few days, and existing gift cards and rewards programs will no longer be accepted.

A court hearing to consider the full-out closure is scheduled for next Tuesday.

There were long lines at stores set to be shuttered when the first round of liquidation sales began in June, with customers stripping the shelves bare in only a few hours as they bought stacks of $4 DVDs.

Wednesday's statement from the receiver did not outline liquidation plans.

The receiver said it has tried to sell the company, but was unable to reach a deal with a buyer that was willing to make the necessary investments to keep the business going.

Blockbuster Canada was placed into receivership by an Ontario court in May in the face of US$70 million in claims from various movie distributors, including Hollywood studios that provide its DVDs, and other suppliers.

The Canadian operations had acted as a guarantor for Blockbuster's U.S. business, which went into bankruptcy protection in September and was later auctioned off for US$320 million to American satellite TV provider Dish Network Corp. (Nasdaq:DISH). Dish did not buy Blockbuster Canada, which was left to pay the bills.

Earlier this month, a New York court delayed a hearing that would have decided whether Blockbuster Canada could legally use the brand name as it went through receivership.

The new owner of Blockbuster USA had said it did not want the Canadian retailer to use the name, while Blockbuster Canada argued it had paid fees for that right. Blockbuster stores had operated in Canada for 21 years.

The receiver in charge of selling Blockbuster Canada had argued that stripping the chain of that right would "devastate" its business.

Blockbuster Canada had been struggling to stay relevant in a time of increasing digital movie downloads.

U.K.-based HMV, once a top music retailer, sold off its Canadian arm in June to Hilco, a company that agreed to invest up to $25 million to fund the evolution of the national music, video and game retailer as it adjusts to the new world of digital entertainment. HMV was drowning in debt and needed to sell off HMV Canada to pay its bills.

HMV Canada had recently been boosting its offerings to focus on a broader selection of music and film-related products, including T-shirts, headphones, video game controllers, mobile phones and other electronics, in an effort to curb declining revenues as disc sales weaken and more shoppers opt for downloads.
 

---

Posted by Tom Petrov (Member # 1534) on 09-04-2011, 11:31 PM:
 
no wonder Blockbuster is closing.

Today while I was out.

Hereafter Bluray/dvd/combo pack:

Blockbuster $34.99
Walmart $18.97
 

---

Posted by Ron Funderburg (Member # 4561) on 09-23-2011, 11:42 PM:
 
Netflex may have just saved blockbuster with their block head moves of late!
 

---

Posted by Mike Frese (Member # 4361) on 09-25-2011, 01:26 AM:
 
For those of you who do not know I am and have been operating video stores for approx. 20 years.

Blu-Ray vs DVD: A significant amount of people who have the ability to play Blu-Ray do not always rent Blu-Ray. Reasons: Do not have BR in every room and do not see a big difference.

Library Movies: Very few markets need a large library of movies as most people just want to watch is new. For every Scarecrow Video that has 70,000 movies, there will be 100 other stores with no need. My stores have stocked as many as 20,000 titles but 95% of the revenue comes from movies less than a year old.

Netflix: Warner Bros. starting January 2012 will be imposing a 60 day window on rental outlets (now 28 days). This could expand to other studios that already impose the 28 day window. The studios realize they devalued their content by giving Netflix too good of deals for streaming. That has already changed with Starz (who controls Disney and Sony content) pulling their content from Netflix streaming. Other studios are supposed to demand higher payments for their content going forward. Netflix will be seeing in the future pressure for ISPs to pay more for their service to go through the internet as Netflix downloading it taking a huge chunk of the space. Post Office-will be reducing the speed at which dvds will arrive by mail. Needless to say Netflix has some issues with many not of their doing. They had to increase prices. Amazing how cheap many people are.
 

---

Posted by Bobby Henderson (Member # 840) on 09-25-2011, 02:07 AM:
 
Sorry, to break it to Warner Bros. but you guys are fucking morons.

If they didn't want their product devalued they should have thought about it IN ADVANCE before Netflix became popular and before Redbox effectively ruined the brick and mortar corner store video rental business model. Fuck you global media conglomerates. You did this shit to yourselves.

It's about time "race to the bottom" let's turn every economy into a third world economy ethic bit the country club member, Cadillac Escalade driving douche firmly in the ass.

I might have some sympathy for the big movie studios if they were creating a lot of products worth buying. Right now, THEY ARE NOT.

So if the corner video store is going to bite the dust and Netflix is put up against the ropes, so be it. It will just be one more step forward in sticking it to these idiots who are working as hard as they possibly can to lose America's lead in pop culture entertainment.

If this shit continues for much longer we will all have to learn Mandarin Chinese in order to understand the best movies being released. Once Hollywood has imploded on itself (and this shit IS INEVITABLE) foreign nations with better movies will have no obligation to accommodate us American English speaking Americans.
 

---

Posted by Tom Petrov (Member # 1534) on 09-25-2011, 09:35 AM:
 

quote: Mike Frese

---

Very few markets need a large library of movies as most people just want to watch is new. For every Scarecrow Video that has 70,000 movies, there will be 100 other stores with no need

---

quote: Mike Frese

---

For every Scarecrow Video that has 70,000 movies, there will be 100 other stores with no need.

---