Goodbye Blockbuster Video

[badger]

Dish Network announced the impending demise of all remaining Blockbuster Video locations as well as Blockbuster’s DVD-by-mail service by early January.

The company will close all its remaining 300 retail stores as well as its distribution centers.

Link

I absolutely used to love renting from them, because I was young and movies at home were family time and all.

The bad business decisions... I'm sure we can all name at least a few: Renting PS2s at launch and kids proceeding to wreck the expensive toys with little deposit to fall back on; "No more late fees," rolling out a rental by mail program waaaay after Netflix. Then trying to have a rent from home or store program that was quite expensive for stores to maintain.

Goodbye, Blockbuster Video. If anyone else has that "Wow, what a difference Blockbuster Video" jingle stuck in their head now, they watched as much TV as a young badger did in the 80s.

[Mjcpr]

I thought they went belly up years ago. They did around here.

Next up: Sears, JCPenney.

[badger]

I thought they went belly up years ago. They did around here.

Next up: Sears, JCPenney.

The one closest to us is now a mattress store (near 71st and Riverside). The next-closest I guess was near the Yale cleaners near 41st and Peoria? It's nothing right now to my knowledge, just an empty building.

I would lean towards Sears going first instead of JCP, because JCP knows its a clothing store, whereas Sears is still stuck in a timewarp where it thinks its a live version of its infamous catalog --- we sell everything, from tires to blouses to fridges to socks!

Heres one more failed business decision by Blockbuster that I forgot: They paid movie studios to hold off releasing their films to Netflix et al so that they could get the rentals first. Because, you know, that Robin Hood starring Russell Crowe is just must-see-right-now type fare.

[8timechamps]

Blockbuster didn't really fail because of poor business choices, they failed because they fell behind the trend of online movies. Had Blockbuster been proactive when the trend first started, and gotten serious about it, I think they would still be an industry leader. Instead, they took a "wait and see" approach, and acted too late. Netflix pretty much sealed their fate.

[8timechamps]

I thought they went belly up years ago. They did around here.

Next up: Sears, JCPenney.

Surprisingly, Sears (who owns K-Mart) may stick around. Their automotive department is still a money maker for them.

I'm not sure how JCPenney survived their last CEO. He made some risky decisions that didn't pay off, and could be the reason they eventually fall.

[jkm, the stolen pifwafwi]

Blockbuster didn't really fail because of poor business choices, they failed because they fell behind the trend of online movies. Had Blockbuster been proactive when the trend first started, and gotten serious about it, I think they would still be an industry leader. Instead, they took a "wait and see" approach, and acted too late. Netflix pretty much sealed their fate.

The problem was that Blockbuster was a bully (much like Microsoft). That corporate mentality tends to make you focus on your competitors and not your market. Basically they got caught in this loop of waiting for a successful competitor to appear and then trying to stomp them. This is fine with brick and mortar establishments, but it sucks in the online space because marketing doesn't work the same way there. Once you let an online brand get entrenched, you either have to buy it out or go scorched earth ala Amazon.

On my last project at Microsoft I had some interactions with the surface group. They had some lets say "optimistic" numbers for its launch (along with Win8). I knew one of them fairly well and told him "The only way you are getting numbers like this is if the Surface would have been an Xbox Portable". He looked at me like I was crazy. He just couldn't see that Microsoft was basically acting like IBM in the late 70s - early 80s when their was an internal war between their flagship typewriter division and the new fledgling computer division.

[8timechamps]

The problem was that Blockbuster was a bully (much like Microsoft). That corporate mentality tends to make you focus on your competitors and not your market. Basically they got caught in this loop of waiting for a successful competitor to appear and then trying to stomp them. This is fine with brick and mortar establishments, but it sucks in the online space because marketing doesn't work the same way there. Once you let an online brand get entrenched, you either have to buy it out or go scorched earth ala Amazon.

On my last project at Microsoft I had some interactions with the surface group. They had some lets say "optimistic" numbers for its launch (along with Win8). I knew one of them fairly well and told him "The only way you are getting numbers like this is if the Surface would have been an Xbox Portable". He looked at me like I was crazy. He just couldn't see that Microsoft was basically acting like IBM in the late 70s - early 80s when their was an internal war between their flagship typewriter division and the new fledgling computer division.

Yep. I do a lot of research on prospective investments, and I distinctly remember when Blockbuster was first going through the initial process of offering a Netflix style program. The overwhelming thought of their board was that they didn't really need to compete with the online space, and that a mail order presence would be more than enough to handle their competition.

The first thing I took from that was (exactly as you mention) their blind focus on Netflix, and no regard to their own growth or target markets. Clearly, there was a growing demand (albeit small) for the online service, but Blockbuster ignored it altogether.

The entire Blockbuster saga should make a perfect lesson in business school about how not to run a business.

[olevetonahill]

Never rented a Movie from em. Hell fer that matter I aint ever rented a Movie from anyone.

[jkm, the stolen pifwafwi]

Yep. I do a lot of research on prospective investments, and I distinctly remember when Blockbuster was first going through the initial process of offering a Netflix style program. The overwhelming thought of their board was that they didn't really need to compete with the online space, and that a mail order presence would be more than enough to handle their competition.

The first thing I took from that was (exactly as you mention) their blind focus on Netflix, and no regard to their own growth or target markets. Clearly, there was a growing demand (albeit small) for the online service, but Blockbuster ignored it altogether.

The entire Blockbuster saga should make a perfect lesson in business school about how not to run a business.

Heh, there has ALWAYS been a demand for in home broadcast. The problem has always been price point. No one was going to pay Comcast $4.99 when they could get it at blockbuster for $2.99. The cable companies could have had that market sewn up, but for whatever reason they were willing to take 5% of the market at that price over 80% of the market at a lower price. Shortly, they are about to find out what happens when customers buy their premium services directly on their mobile device. HBO will probably be the first since they almost have the platform in place with HBO GO. At that point, the only thing that would be keeping me on cable is sports.

It takes time, but eventually every company that tries to gouge customers gets it in the end.

My next slow death target is UPS/FedEx. My thinking is that in 5-6 years, 3d printing will be good enough that you'll be buying online licenses for items to be printed on them. It might take 10 years after that before it finally becomes mainstream, but when it does people are going to be dreaming up ways to get free "electronic" shipping.

[DrZaius]

My buddy has a couple of BluRays rented from them. Got a letter last week saying keep them because they were no more....pretty cool

[badger]

Surprisingly, Sears (who owns K-Mart) may stick around. Their automotive department is still a money maker for them.

We got our fridge from Sears. If they just dumped the clothing side and became an automotive Lowe's, they'd probably be better off for it.

I'm not sure how JCPenney survived their last CEO. He made some risky decisions that didn't pay off, and could be the reason they eventually fall.

JCP made a very brave decision that retailers like them always wanted to do but were too chicken to try: Doing away with every weekend/weekday/holiday sales. Alas, it didn't work out but at least they weren't afraid to try.

The only way you are getting numbers like this is if the Surface would have been an Xbox Portable

Why in the world didn't they do that. After the X-Bone failures before launch (you have to buy games that you'll never actually own! we're more expensive than PS4! kinect included rawrrrrr) they might have been better off doing that instead of a new console. Plus, wasn't Surface too expensive initially and sales were crappy?

It takes time, but eventually every company that tries to gouge customers gets it in the end.

Was there any way to save Blockbuster as a brick and mortar movie joint? People still buy movies, not just rent them. People still rent movies, not just buy them. Are there just not enough non-Internet savvy old farts to keep such a business model going?

[KantoSooner]

My next slow death target is UPS/FedEx. My thinking is that in 5-6 years, 3d printing will be good enough that you'll be buying online licenses for items to be printed on them. It might take 10 years after that before it finally becomes mainstream, but when it does people are going to be dreaming up ways to get free "electronic" shipping.

It'll be a bit longer than that. 3D printing is good enough to do rapid prototyping type stuff, but the finish and assembly isn't there. I briefly ran one office for a company that did rapid prototyping for the consumer electronics industry to do things like prototype cell phones. You could make them feel about right, look about right, etc. but there were never as shiny and you simply couldn't do the guts of much of anything. I can't imagine they'll be ready to do something like, say, a toaster oven anytime soon, let alone electronics.

[olevetonahill]

It'll be a bit longer than that. 3D printing is good enough to do rapid prototyping type stuff, but the finish and assembly isn't there. I briefly ran one office for a company that did rapid prototyping for the consumer electronics industry to do things like prototype cell phones. You could make them feel about right, look about right, etc. but there were never as shiny and you simply couldn't do the guts of much of anything. I can't imagine they'll be ready to do something like, say, a toaster oven anytime soon, let alone electronics.

A Saxet company just made a 3D 1911. fired it over 50 times no problems

http://www.foxnews.com/tech/2013/11/...ted-metal-gun/

[jkm, the stolen pifwafwi]

It'll be a bit longer than that. 3D printing is good enough to do rapid prototyping type stuff, but the finish and assembly isn't there. I briefly ran one office for a company that did rapid prototyping for the consumer electronics industry to do things like prototype cell phones. You could make them feel about right, look about right, etc. but there were never as shiny and you simply couldn't do the guts of much of anything. I can't imagine they'll be ready to do something like, say, a toaster oven anytime soon, let alone electronics.

15-16 years is a long time. Heck most computers were on that newfangled Windows 95 that long ago.

[okiewaker]

Used to love'em back in around 2000 to 2007. Used to enjoy Friday nights going there and getting movies and such. Oh well,,,next up.

[Wishboned]

There are two stores in Tulsa. Yesterday was the last day they were renting movies. They're closed until Thursday when they'll open up for their liquidation sale.

[8timechamps]

We got our fridge from Sears. If they just dumped the clothing side and became an automotive Lowe's, they'd probably be better off for it.

It's something they are researching. There is a serious proposal on the table to move all clothing/houseware product to K-Mart, and make Sears automotive/tools/electronics only.

JCP made a very brave decision that retailers like them always wanted to do but were too chicken to try: Doing away with every weekend/weekday/holiday sales. Alas, it didn't work out but at least they weren't afraid to try.

They did try to shake it up a bit, so at least they're not thinking "we'll be fine". There biggest problem is their inability to distinguish themselves from anyone else in their market space. Before Marshall's, Kohl's and the like were around Penny's had that space to themselves. Penney's is also anchored to malls, and if someone wants to take their kid school shopping on a weeknight, after a long day at work, they're going to go to a Kohl's, where everything they need is in one place, and they don't have to fight mall traffic. Penney's needs to come up with something big to re-attract customers, or it will be the next department store buried.


Why in the world didn't they do that. After the X-Bone failures before launch (you have to buy games that you'll never actually own! we're more expensive than PS4! kinect included rawrrrrr) they might have been better off doing that instead of a new console. Plus, wasn't Surface too expensive initially and sales were crappy?


Was there any way to save Blockbuster as a brick and mortar movie joint? People still buy movies, not just rent them. People still rent movies, not just buy them. Are there just not enough non-Internet savvy old farts to keep such a business model going?[/QUOTE]

[sooneron]

Man, I can remember nights when a bad winter weather weekend was coming up. There would be a line 15-20 peeps long in Blockbuster. Oh well...

[jkjsooner]

The cable companies could have had that market sewn up, but for whatever reason they were willing to take 5% of the market at that price over 80% of the market at a lower price. Shortly, they are about to find out what happens when customers buy their premium services directly on their mobile device.

Most of us have our Internet connection through the cable companies. With the net neutrality ruling I've yet to be convinced that cable companies will not start blocking online movie rental services - or at least push them way down the priority list or throttle those services heavily. Or if the courts do consider that too heavy handed they can just start enforcing the data download limits. You can't download many HD movies with many plans...

I have DirectTV right now. Movies that are pre-loaded on the DVR are downloaded via satellite but others use your Internet connection. I'm waiting for Time Warner to start blocking the latter...

As for mobile devices, unless you're connected to your wireless router, I wouldn't expect downloading movies on your cell phone connection to be a very pleasant experience.

[jkjsooner]

One more thing, I'm surprised nobody mentioned Redbox. They're so much more convenient than Blockbuster. Maybe these will eventually go away too but I think they still have a few years left. Online streaming of HD movies can still be tedious at times and "on demand" cable services can be spotty on a Friday or Saturday night unless you have a fiber service provider. (Ever received those random error messages when trying to order a movie? They don't tell you the cause but it's because they've run out of channels in your area that are reserved for on demand services.)