The Conservative Cave
Current Events => Economics => Topic started by: Chris_ on September 23, 2010, 08:54:57 AM
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Blockbuster Inc. is in the final stages of preparing a long-awaited bankruptcy-court filing, marking a milestone in consumers' shift away from brick-and-mortar video stores to films delivered by mail and the Internet.
Blockbuster, struggling amid more than $900 million in debt, could file for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code in the next few days, said people familiar with the matter. The filing was expected as soon as Wednesday, they said, and is likely to come by Friday or sometime next week.
Wall Street Journal (http://online.wsj.com/article/SB10001424052748704129204575506443334512852.html?mod=dist_smartbrief)
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Amazing how they didn't see the technology changing and adapt their business.
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They got onto the Netflix bandwagon way too late, and Redbox isn't helping things. I pass three Redboxes and a Hollywood Video before I even get close to the only Blockbuster in the neighborhood.
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They got onto the Netflix bandwagon way too late, and Redbox isn't helping things. I pass three Redboxes and a Hollywood Video before I even get close to the only Blockbuster in the neighborhood.
Wow, there's still Hollywood Video?
I thought they all closed down a couple years ago.
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It could be an HV or it could be something else. I've never actually been there. I think it might be called 'Village Video'.
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Yup--Blockbuster closed down here last week. Not surprising, really. Why pay $5 for a 2-night (really 1 night) rental when you can rent from RedBox for $1/night, or get Netflix for $10/mo?
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Amazing how they didn't see the technology changing and adapt their business.
Very bloated company too.
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Wow, there's still Hollywood Video?
I thought they all closed down a couple years ago.
There was one up the road here until this past May when they liquidated.
I need to go burn this BB gift card before they go tits up.
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Sad thing is Blockbuster had a kiosk developed long before Red Box existed.
This is a sad story that has existed in corporate America for years.
Basically a company develops something totally innovative and becomes a market leader. They hire managers to run the business. The managers become territorial and kill innovation.
Blockbuster also had a decent mail order strategy developed before the box store executives killed it.
The problem with Blockbuster is they worried about internal innovation cannablizing on existing infrastructure sales.
They were too stupid to realize that if they were smart enough to come up with an idea, someone else is thinking the samething somewhere else. The difference between Alexander Graham Bell being famous and Elisha Gray is simply the time the patent was filed.
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I used to use Blockbuster all the time till someone in their store didn't check the return bin and the next time I went in to rent some movies and they said I owed $40 for late fees I was like WTF and haven't rented from them since then
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I read that the CEO of BB poo-poo'ed Netflix when they first came out. He thought it was a niche market that would never go anywhere. Unfortunately, all those people who are losing their jobs due to management's short-sightedness are the big losers. It used to be that friday & saturday nights were like a cattle call at BB. Last time I passed one on a friday night it was barren.
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I read that the CEO of BB poo-poo'ed Netflix when they first came out. He thought it was a niche market that would never go anywhere. Unfortunately, all those people who are losing their jobs due to management's short-sightedness are the big losers. It used to be that friday & saturday nights were like a cattle call at BB. Last time I passed one on a friday night it was barren.
I feel bad for the employees, however this is how creative destruction works in the business cycle.
Now we could go off and try to rescue blockbuster with a federal bailout and make sure that CEO is given a second chance to fail because we feel sorry for them. Blockbuster video employees haven't contributed enough to political campaigns. So tough shit.
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Not willing to adopt and look what happens. Me, I prefer Red Box because you can get it on the spot, unlike NetFlix.
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Not willing to adopt and look what happens. Me, I prefer Red Box because you can get it on the spot, unlike NetFlix.
I just got one tonight, Red Box actually has a better selection than my local block buster for the Indy movies I like.
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Not willing to adopt and look what happens. Me, I prefer Red Box because you can get it on the spot, unlike NetFlix.
Huge Redbox fan. Their selection actually beats Blockbuster in my area.