Just three months ago, I discussed why Netflix had already won the DVD Rental War against Blockbuster. It now seems that the company’s struggles have really taken hold and mainstream media agrees that it’s time to say goodbye to Blockbuster.
In their third-quarter results, Blockbuster reported a decline in revenue of over 5% and a net loss of $35 million. They’ve also closed over 500 stores in the past year and are now watching their stock price falter to $4.81 at Friday’s close.
For more gruesome Blockbuster analysis, continue reading at Brent Evans Geek Tonic.
While their situation doesn’t look great, I think they’re wise to deemphasize online program numbers and focus on total subscriber count. There will always be a market for brick & mortar rental locations, the questions are: How many and can the business be efficiently managed? Expectations also need to be adjusted for the current market, including Netflix and VOD/PPV (regardless of delivery method). Blockbuster shouldn’t have dicked around with that Movielink purchase, and either created their own system or invested that capital in a kiosk business. “Blockbuster @ Safeway” or something.
I use BlockBuster Online instead of Netflix. It’s really nice to be able to run to the local store (about 3 mins away) with my watched online rentals and trade them for movies at the store (at no cost) and then get 3 more movies in the mail a day or 2 later.
There are times when we’ll be sitting around and say “Hey, how about we watch tonight”. Can’t do that online.
I also do the same with Amazon Unbox.
John
I agree the in-store swapping is convenient, but I’m not sure it’s good for business at the current scale.
My problem lately (with Netflix, Amazon, and Xbox) is finding movies I want to see. I’m still mostly watching television series on DVD. Though we caught Spiderman 3 last night, and it wasn’t very good. Maybe I don’t need that HD DVD player after all.
I want to sue sony to get those two hours of my life back for Spiderman 3. Seriously, though, it seems to me that streaming or downloadable content is the future. The problem that I see with that is selection, lack of HD (I’m talking to you Amazon) and the typical 24 hour watch window. If netflix is able to release a box with HD and a reasonable price structure, they would clean up.
I’m still stubbornly holding onto my Blockbuster Online subscription. I’d be tempted to move over to Netflix, except I still get one free game rental a month through my Online subscription (nice way to test out those new Wii games). If Blockbuster ever takes that out, I will happily move over to Netflix.
I also find Blockbuster online to be superior to Netflix. Netflix just got there first, and they have the verb (“I’ll just netflix that movie later”). Blockbuster more or less invented the movie rental store, so they’ll always be around. They just have to step it back a bit.
I’ve been a long time Blockbuster Online subscriber. Honestly, I can care less how their financials look. As long as I’m getting the product/service I’m paying for every month, I’m pleased. As soon as that changes, I’ll consider other options.
Quote from razordullwit: “Blockbuster more or less invented the movie rental store,…”
How old *are* you? For pete’s sake. They existed long before that chain store existed.