Netflix soars as Blockbuster plans bankruptcy

[Dos Equis]

Maybe Blockbuster should have asked for stimulus money? 

I'd like to take partial credit for forcing Blockbuster into bankruptcy.  After giving them way too much of my time and money, I finally got Netflix and I'm never going back.   

Netflix soars as Blockbuster plans bankruptcy
by Greg Sandoval


Remember walking the aisles to find a movie? Those days appear to be ending.
(Credit: Greg Sandoval/CNET)

As if fights for survival, video-rental chain Blockbuster is preparing to file bankruptcy next month, according to a report in the Los Angeles Times.
Blockbuster executives met with the six largest Hollywood film studios recently to brief them about the company's plan, the Times reported. The move by Blockbuster, which closed down nearly 1,000 retail stores in the past year, appears designed to help the company get out of leases on perhaps as many as 800 underperforming stores, according to the report. The chain operates more than 3,400 stores.

Blockbuster reportedly plans to file something called a "pre-planned bankruptcy" and will continue to pay the studios and other most other major creditors. This development shouldn't surprise anyone. For years, Blockbuster has closed stores, laid off thousands, and generally been tumbling towards extinction. Driving to a video store to rent a movie is rapidly becoming as unnecessary as hiring a travel agent, developing film, or listening to music on compact discs.

A Blockbuster spokesperson was not immediately available for comment.

Mainstream consumers have opted for renting movies via rental kiosks such as Redbox, cable's video-on-demand, and especially Internet rental services--most specifically Netflix. Since 2008, the once industry-dominant Blockbuster has lost more than a $1 billion and Netflix has thrived.

The Los Gatos, Calif.-based Netflix will likely top 20 million subscribers next year and last year generated $115 million in net profit on $1.6 billion in revenue. Where once Netflix, with it's original business model of mailing little red DVD packages to customers, was a sort of a rogue element in the film distribution business, the public company has now won respect in Hollywood.

Netflix was once a source of far less revenue than Blockbuster or rival Movie Gallery, the No. 2 brick-and-mortar chain that has also filed for bankruptcy, but Netflix's CEO Reed Hastings was pesky in his ability to compete for customers. (The studios even tried to block Netflix from obtaining specific titles but the scrappy company always managed to find a backdoor way to get them.)

Now, Netflix's streaming video service is attracting the kind of audience and generating the kind of cash that's made film execs take notice.
This month, Netflix penned a five-year deal worth nearly $1 billion to stream movies from Paramount, Lionsgate, and MGM.

And digital distribution of movies and TV shows is barely in its infancy. Services such as Hulu, YouTube, and Boxee are still developing. Apple is reportedly working on some kind of new digital-video service perhaps tied to a new generation of Apple TV.

While we still have a long way to go, it doesn't look like brick-and-mortar video stores will be making the trip.

http://news.cnet.com/8301-31001_3-20014895-261.html

[tonymctones]

whats sad is that blockbuster had more than enough time to change their business model and if they would have they likely would have driven netflix right out of business with the brand loyalty that they had and be raking in the big bucks as a result.

[ToxicAvenger]

redbox is better...its just a dollar per movie

i also have netflix and have had it for around 5 yrs now

[tonymctones]

redbox is better...its just a dollar per movie

i also have netflix and have had it for around 5 yrs now

redbox has a great business model but block buster tried that as well but like 4 yrs too late. They are a great example of a business that failed to adapt to the changing market place and is being forced into bankruptcy.

[Dos Equis]

redbox is better...its just a dollar per movie

i also have netflix and have had it for around 5 yrs now

What's the difference between the two? 

[tonymctones]

What's the difference between the two? 

red box is immediate, you can think of a recent movie and go pick it up that night no thinking in advance.

immediate gratification...very big for us impatient ppl 

[Dos Equis]

red box is immediate, you can think of a recent movie and go pick it up that night no thinking in advance.

immediate gratification...very big for us impatient ppl 

Sounds like Blockbuster?  You have to go to a store to get? 

I like the immediate gratification part.     Amazing how impatient we have become.  I've gotten really bad, especially with internet stuff. 

[tonymctones]

Sounds like Blockbuster?  You have to go to a store to get? 

I like the immediate gratification part.     Amazing how impatient we have become.  I've gotten really bad, especially with internet stuff. 

well a little bit but they have red box's everywhere mcdonalds, walmart, cvs, walgreens etc...etc...most of which are outside and can be accessed 24hours a day. I think most mcdonalds have a redbox as well as walmarts.

I agree its almost a sickness to be honest...I think this is part of the reason I have such a problem with sitting in traffic.

[Dos Equis]

well a little bit but they have red box's everywhere mcdonalds, walmart, cvs, walgreens etc...etc...most of which are outside and can be accessed 24hours a day. I think most mcdonalds have a redbox as well as walmarts.

I agree its almost a sickness to be honest...I think this is part of the reason I have such a problem with sitting in traffic.

I think I'll stick with Netflix.  I like being able to point and click to order and stream them on my laptop and TV. 

Yeah it's pretty bad.  I HATE traffic.  I hate waiting on slow internet just as much. 

[Purge_WTF]

  I work for Netflix. I basically get paid good money to drive around in the company truck and blast my CD's. I just checked my Employee Stock Purchase over at E-Trade and it's up to over $131,002.

[Hugo Chavez]

old news and not very political, would be a better thread in entertainment or general.  The blockbuster failure saga has been playing out for well over a year now.  I stopped giving them business when I kept getting huge late fees all the time for movies I returned on time.  They wouldn't listen to jack shit and I knew I was returning them on time.  Then the whole late fee scandal came out and that's when they started to change their late fee policy but it was to late for me and probably most people that got stiffed by their late charge game.  those fuckers flat out stole money from people.

[Hugo Chavez]

  I work for Netflix. I basically get paid good money to drive around in the company truck and blast my CD's. I just checked my Employee Stock Purchase over at E-Trade and it's up to over $131,002.

that's cool, but I gotta say, that's a really creepy pic lol...  It would symbolize some guy happy as shit at the base of the cross Jesus died?  I'm not even christian and that's just off lol...

[ToxicAvenger]

Sounds like Blockbuster?  You have to go to a store to get? 

I like the immediate gratification part.     Amazing how impatient we have become.  I've gotten really bad, especially with internet stuff. 

every grocery store and 711 has em...and its $1 per rental..you can even go online and reserve a movie at a particular redbox and then pic it to later in the day...

blockbuster tried a similar concept but i wont rent from those boxes...redbox came up with the idea and should reap the benefits...

[Purge_WTF]

that's cool, but I gotta say, that's a really creepy pic lol...  It would symbolize some guy happy as shit at the base of the cross Jesus died?  I'm not even christian and that's just off lol...

 I am a Christian and just thought it was funny.

 The one thing about Lackluster that irritated me was the fact that they'd charge you late fees for not returning a movie on its due date if that due date fell on the same day as a Declaration of Emergency by the local government where you were required to stay off the roads.

[Dos Equis]

  I work for Netflix. I basically get paid good money to drive around in the company truck and blast my CD's. I just checked my Employee Stock Purchase over at E-Trade and it's up to over $131,002.

Nice.  I've always said if I could start over I would work for Walmart as a teenager and get as much stock as possible. 

I actually tried the Blockbuster online rentals, but they are more expensive than Netflix and when you exchange in the store the exchanged movies are subject to late fees.  The entire Blockbuster marketing division should be fired. 

[Dos Equis]

 

Blockbuster set to close 3 more stores in Hawaii
By Star-Advertiser staff
POSTED: 01:30 a.m. HST, Apr 01, 2011
ASSOCIATED PRESS

Blockbuster Inc., which has closed more than 1,000 stores across the country, will shut down three more in Hawaii, at Salt Lake, Wai anae and on the Big Island. Above, the return slot at a Blockbuster Video store in New York.

Blockbuster Inc. is closing three Hawaii stores on April 10.

The home video chain, which put itself up for sale after a failed attempt to reorganize in bankruptcy, will close a Salt Lake store at 848 Ala Lili koi St., a Wai anae location at 86-120 Farrington Highway, and a Big Island store at 74-5586 Palani Road in Kailua-Kona.

The locations employ more than 20 workers, according to store managers.

Blockbuster, which closed its Mililani store at 95-221 Kipapa Drive this month, filed for Chapter 11 bankruptcy protection in September, after mounting losses due to increased competition from serv ices such as Netflix and Redbox. The company, established in 1985 by a Dallas software entrepreneur, has lost market share in recent years.

Blockbuster has shut down more than 1,000 money-losing stores nationwide in the past two years.

The U.S. Bankruptcy Court in New York approved the auction of the company on March 11.

http://www.staradvertiser.com/business/20110401_Blockbuster_set_to_close_3_more_stores_in_Hawaii.html

[Dos Equis]

3 more Blockbuster sites to close
The parent company of the video rental chain will shut more Oahu stores this week
By Kristen Consillio
POSTED: 01:30 a.m. HST, Jul 12, 2011

The Pearl City Blockbuster store, above, is one of three outlets that will close this week after the parent company was purchased in bankruptcy in April by Dish Network Corp. Other stores due to close are in Kaneohe and at the Kamehameha Shopping Center.

The new owner of Blockbuster Inc. is closing three more Oahu stores this week, according to local employees.

Dish Network Corp. will shut down Blockbuster locations in Pearl City at 850 Kamehameha Highway, in Kaneohe at 46-047 Kamehameha Highway and at the Kamehameha Shopping Center at 1620 N. School St.

All three locations were slated to close Wednesday, though an employee at Pearl City said that store will now close Saturday.

Blockbuster spokesman Kelsey Smith said the lease for the stores were not assumed by Dish Network as part of the April 26 asset purchase agreement.

"Employees will be relocated to neighboring stores where applicable and as staffing needs dictate," Smith said.

Dallas-based Blockbuster closed outlets earlier this year in Mililani at 95-221 Kipapa Drive, in Waianae at 86-120 Farrington Highway and in Salt Lake at 848 Ala Lilikoi St. It also shut down a Hawaii island store at 74-5586 Palani Road in Kailua-Kona.

Blockbuster's remaining stores on Oahu are in Ewa Beach, Kahala, Kailua, Kapiolani, Kapolei, Wahiawa and Waipio.

"As far as total stores in this (lease) situation, we do not have a final number," Smith said. "Dish Network is continually working with landlords on lease negotiations."

The video rental chain filed for Chapter 11 bankruptcy protection in September, after mounting losses due to increased competition from services such as Netflix and Redbox. The company, established in 1985 by a Dallas software entrepreneur, has lost market share in recent years and put itself up for sale after a failed attempt to reorganize in bankruptcy.

In April the U.S. Bankruptcy Court for the Southern District of New York approved the sale of Blockbuster's assets to Dish Network Corp. for $320.6 million in an auction. At the time, Dish agreed to acquire leases for about 500 Blockbuster stores, ensuring the video giant will continue to have a physical presence in the marketplace.

Blockbuster has shut down more than 1,000 money-losing stores nationwide in the past two years.

http://www.staradvertiser.com/business/20110712_3_more_blockbuster_sites_to_close.html

[Purge_WTF]

  Just got another E-Trade statement in the mail and my stock is now worth just under a quarter of a million.

[Dos Equis]

  Just got another E-Trade statement in the mail and my stock is now worth just under a quarter of a million.

   Very nice.   

[chadstallion]

netflix.com wired right into the blu-ray. instant movies.
blockbuster?  what's that?

[LurkerNoMore]

I use Blockbuster.  Mainly because there is a store about a mile away.  I do the 3 in the mail at one time for $11 per month.  You can take one of your mail in back to the store and swap out for a DVD there while they send you a new one in the mail.   

Have not looked into Netflix but need to because Blockbuster is having a really hard time stocking foreign films that I like.

[Dos Equis]

I use Blockbuster.  Mainly because there is a store about a mile away.  I do the 3 in the mail at one time for $11 per month.  You can take one of your mail in back to the store and swap out for a DVD there while they send you a new one in the mail.   

Have not looked into Netflix but need to because Blockbuster is having a really hard time stocking foreign films that I like.

The problem is late fees apply to the in-store exchange at Blockbuster.  Blockbuster gets new releases about a month faster than Netflix, but other than, I prefer Netflix.  You get your movies in 48 hours (one day to order, one day mailing).  You get three at a time.  They have instant streaming to your TV (except for most new releases).  Pretty cheap.  No late fees. 

Only problem I've had is my wife reordering my queue with movies she wants.    

[LurkerNoMore]

I am not familiar with this movie streaming.  I have been a bit resistant to learning about it mainly because when I have the physical DVD in my hands, it is easy to stick it in the computer and dupe it.

[Dos Equis]

I am not familiar with this movie streaming.  I have been a bit resistant to learning about it mainly because when I have the physical DVD in my hands, it is easy to stick it in the computer and dupe it.

If you have a PS3 or any other DVD device with internet access, it's as simple as pointing and clicking.  Netflix appears on your screen, you pick the movie want to watch, press play, and it starts.  You can do the same thing on your computer or your smart phone. 

[Dos Equis]

Competition is on the ropes, raise your prices.  Had to know this was coming. 

Netflix hikes prices for DVDs + streaming
By Julianne Pepitone @CNNMoneyTech
July 12, 2011

NEW YORK (CNNMoney) -- Netflix is launching new, unlimited DVD-only plans in the U.S. -- but as a part of that move, it's scrapping unlimited plans that include both physical DVDs and online streaming.

Subscription movie rental service Netflix (NFLX) said Tuesday that the changes are meant to "better reflect the costs" of each option. The changes cut prices slightly for customers who only want DVDs, but streaming video will now cost extra. Customers who want both options will essentially have to pay for two plans, raising their overall bill.

Netflix's unlimited streaming-only plan will remain at $7.99 a month, while its "1 DVD at a time" plan will also cost $7.99. That means customers who want both streaming and DVDs will have to shell out at least $15.98 a month.

That's a big jump from the $9.99 a month customers currently pay for a plan that offers unlimited streaming plus 1 DVD at a time.

The changes will be effective immediately for new customers and will take effect September 1 for existing members, Netflix said.
Netflix's vanished Sony films are an ominous sign

The move comes as Netflix continues to shift its focus toward online streaming video -- an option that, while popular, costs Netflix loads of cash as studios start commanding higher prices for their content.

Netflix's announcement sparked an immediate and loud backlash from customers. By Tuesday afternoon, more than 3,000 comments filled the Netflix blog post announcing the changes -- most overwhelmingly negative. Hundreds of commenters said they would cancel their plan, some in favor of rival streaming offerings from Hulu and Amazon (AMZN, Fortune 500).

Others planned to stock up on DVDs from rental kiosk Redbox (owned by Coinstar (CSTR)), which said earlier this year that it is working on its own streaming service to take on Netflix.

"The only way that this is terrific for the customer is if you plan to offer your entire collection available for streaming," one respondent wrote on Netflix's blog. "Otherwise this is just yet another way to choke more change out of your customers."

"You've decided to raise customer rates during a period of economic downturn, when people are struggling to pay for basic necessities," another customer wrote. "You're forcing me to pay more for products and services I've paid for loyally for quite a while now. You're really, REALLY making me reconsider this business relationship."

Netflix first introduced streaming plans in 2007. Since then, the service's membership has climbed from 6 million to 23 million in the U.S.

http://money.cnn.com/2011/07/12/technology/netflix_unlimited_dvd/index.htm?hpt=hp_t2