Poor Blockbuster may be busted

**Wesley** · 03-17-2010, 10:17 AM

Blockbuster Seeks to Cut DVD Costs, May File Chap. 11 (Update2) - Bloomberg.com

Facing competition from rental vending machines like Coinstar Inc.’s Redbox and by-mail and online from Netflix Inc., Blockbuster has seen revenue decline for six straight quarters. The company’s credit ranking was cut two grades this month to Caa3, the third lowest, by Moody’s Investors Service.
In a consignment-sales model, Blockbuster doesn’t actually buy DVDs. Instead, the company provides shelf space to studios, Keyes said. The company has signed a few deals with studios and is looking for others, Keyes said.
Other studios have agreed to reduce Blockbuster’s upfront payment to $2 to $4 per DVD from $18 for both sales and rentals, Keyes said. In return, Blockbuster and the studios each get about 50 percent of the revenue, depending on separate deals negotiated with each, he said

**aeroclone** · 03-17-2010, 10:21 AM

[ame=http://www.youtube.com/watch?v=-f_DPrSEOEo]YouTube - Dumb and Dumber - We Landed on the Moon![/ame]

Seriously, the news of the death of Blockbuster seems to have been going on for years now.

**brianhos** · 03-17-2010, 10:31 AM

They should request a government bailout.

**Wesley** · 03-17-2010, 10:56 AM

With Couch Potato, Mom and Pops, grocery stores, Hollywood Video, and Blockbusters all being mothballed in smaller towns, the Netflixes and Red Boxes in Walmart will control much of the market.

My guess is that people will also be buying fewer DVDs in the stores as the novelty is wearing off fast.

It will not be long before vast majority the movies will just be delivered through the Internet such as Netflix Instant queue. the only problem is the Netflix Instant Queue needs to offer more of the newer movies.

The Movies on Demand for $6 a pop will probbaly not be as popular either if streamed movies are offered from other sources.

Times a changin.'

**linkshero** · 03-17-2010, 11:16 AM

Redbox is very viral right now, not just Wal Mart. Most McDonalds, Kum and Go, others, also near most neighborhoods. We use Netflix as well, but were thinking about canceling and just using redbox. They have a hold service as well, and we have one 1/2 mile from our house.

The only time I have used Blockbuster was when I wanted to watch an old season series like Weeds, or an old classic movie.

I just don't get how on demand can keep charging the prices they do. Do you think a lot of people rent $7.00 movies? I guess people do it and then can't figure out why their cable bill is $200.00 It seems to me that if OD was in the 1.99-2.99 range, they could do pretty well. I know if they got Porn down to 5.99 instead of 12.99, I would be a loyal customer......

**brianhos** · 03-17-2010, 11:20 AM

I also do not understand the price of on demand movies. DTV wants to charge $7 for a 24 hr HD movie when I can buy the Blu Ray for $15.

**bos** · 03-17-2010, 11:28 AM

Originally Posted by brianhos

I also do not understand the price of on demand movies. DTV wants to charge $7 for a 24 hr HD movie when I can buy the Blu Ray for $15.

Convenience charge of sitting on your duff. I understand your thinking though, its frustrating as hell.

**Cyched** · 03-17-2010, 11:35 AM

Originally Posted by brianhos

They should request a government bailout.

I hear Congress is feeling generous

**RyCy04** · 03-17-2010, 11:41 AM

Originally Posted by linkshero

Redbox is very viral right now, not just Wal Mart. Most McDonalds, Kum and Go, others, also near most neighborhoods. We use Netflix as well, but were thinking about canceling and just using redbox. They have a hold service as well, and we have one 1/2 mile from our house.

The only time I have used Blockbuster was when I wanted to watch an old season series like Weeds, or an old classic movie.

I just don't get how on demand can keep charging the prices they do. Do you think a lot of people rent $7.00 movies? I guess people do it and then can't figure out why their cable bill is $200.00 It seems to me that if OD was in the 1.99-2.99 range, they could do pretty well. I know if they got Porn down to 5.99 instead of 12.99, I would be a loyal customer......

I appreciate it if you don't spread the word on this. The majority of people I have talked to don't know about this option. I am assuming most people aren't aware of this convenience which helps me out in my movie selections.

**throwittoblythe** · 03-17-2010, 11:44 AM

We still use blockbuster as our primary source for rentals. Though, we only rent about once a month (which costs ~$9 for two movies) so Netflix isn't really economical for us. Also, Blockbuster is less than a mile down the street.

Currently, they're running a promotion of "$4 for a 4 night rental." I'm guessing they're doing this to try and keep up with Redbox by saying "Look! Our rentals are only $1/night, too!" But who the heck wants to have a rented movie for 4 nights?

We'll probably continue going there until they close, I'm guessing.

**RyCy04** · 03-17-2010, 11:52 AM

Originally Posted by throwittoblythe

We still use blockbuster as our primary source for rentals. Though, we only rent about once a month (which costs ~$9 for two movies) so Netflix isn't really economical for us. Also, Blockbuster is less than a mile down the street.

Currently, they're running a promotion of "$4 for a 4 night rental." I'm guessing they're doing this to try and keep up with Redbox by saying "Look! Our rentals are only $1/night, too!" But who the heck wants to have a rented movie for 4 nights?

We'll probably continue going there until they close, I'm guessing.

I get Netflix for $9 a month. I am able to have 1 DVD at a time and stream unlimited movies on computer or XBox. Turnaround in Omaha is about 2 days (put in mailbox Monday morning, new DVD arrives Wednesday).

**frontrangeclone** · 03-17-2010, 01:31 PM

Historic ?Blockbuster? Store Offers Glimpse Of How Movies Were Rented In The Past | The Onion - America's Finest News Source

**SC Cy** · 03-17-2010, 01:53 PM

The only thing Blockbuster has going for itself right now is renting video games. Even then, they are so expensive to rent I don't know why you'd do it on a regular basis.

**Aaron Jacobs** · 03-17-2010, 02:33 PM

I went with my brother the other night and it was $5 for 5 nights which is rediculious, especially when i can just go to a family video and get new releases for $2.50.

**tejasclone** · 03-17-2010, 02:42 PM

Originally Posted by throwittoblythe

We still use blockbuster as our primary source for rentals. Though, we only rent about once a month (which costs ~$9 for two movies) so Netflix isn't really economical for us. Also, Blockbuster is less than a mile down the street.

Netflix's cheapest option is 2 DVDs per month (one out at a time) for $4.95.

Add Blu-ray access for $1 a month.