Blockbuster Has Overstayed Its Welcome
from the going...-going... dept
Jeremiah writes "On the heels of our recent Google Video discussion, I couldn't resist pointing out this (candid) article on Slate, that basically sounds the death knell for Blockbuster. A choice quote: "Netflix signed up over 3 million subscribers by 2005 by offering DVDs that could be kept as long as renters liked for a monthly fee. To compete, Blockbuster had to do away with its single biggest profit-earner: charging late fees to customers who kept videos past the due date. It also had to invest millions of dollars in a copycat online plan." What strikes me as curious is this same author sounds a similar (but not as brute) call with respect to digital downloads: "The studios stand to gain even more from a huge audience willing to pay to download movies from their libraries. Unlike DVDs, which require manufacturing, warehousing, distribution, and disposing of returns, it costs almost nothing to download a movie or cartoon. Indeed, all the costs of transmission would be born by the cable operator (or a site like the Apple Music Store), whose cut would be less, under present arrangements, than retailers get on DVDs. So, if a movie were a huge hit, such as Shrek, and millions of orders flooded in, the marginal cost of filling them would be zero. The consumer, once he bought the download, could watch it where and when he chose to just as he once watched a DVD." Key phrase: "....just as he once watched a DVD." One wonders: Netflix, we hardly knew ya?" Actually, reading the details of the Blockbuster article, what's most interesting isn't the Netflix angle. He's basically saying that Netflix was just the final nail in the coffin -- but there were many, many other factors damning the existence of Blockbuster, including the company's rush to open up so many stores (now a dead weight) and management's strategic failure to accept the same deal it had on VHS tapes when DVDs came out. That decision basically opened the door for Wal-Mart, Best Buy and the other big retailers to wipe out Blockbuster's entire reason for being with the single horrifying phrase: "loss leader."
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What about NetFlix
I don't like the idea that I wolud have to visit every movie studio's site to download the movies that I want to see, I like having a consolidated place to go for all that.
Do you think that the movie studios are really going to cut out the middle men?
Would you yourself want to visit each studio to rent or buy the movie of your choice?
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Re: What about NetFlix
Many homes now have the bandwidth to do so. Tivo's PVR's and cable boxes make perfect movie players. I've always wondered why the movie companies don't just team up with the cable providers and offer all their movies (through the cable box) using a pay per view model similar to netflix.
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How to make money on blockbuster
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Re: What about NetFlix
the NetFlix model is perfect, if they could do it with downloads instead of mail, then I would be very happy.
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Just a simple question...
-- and then put whatever they CHOOSE to put on them
-- and watch/listen to the content just about where they want to watch/listen to it at...
The CD/MP3/DVD Player in the Car/SUV, the Front Room Player, the office computer, the Bedroom PS2/X-BOX or even "Mom's" house, since she now has a multi-function audio/video "disc" player thanks to Hullmark/Holiday season
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Re: What about NetFlix
When it expires, it's "returned" for you, and no longer appears in your available list.
When is Time-Warner or Comcast going to catch up to us backwards Cannucks???
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Re: What about NetFlix
...over 250 available channels, plus XM satellite radio stations as well! Add a TiVo-DVR unit into the mix for $4.95 more, and you have a product much better than any cable provider currently offers.
Now, if both cable and satellite companies would follow just as this article states, and provide CURRENT BOX-OFFICE releases... as an alternative to actually going to a movie theater, then there is a nice product! (Mike has also been suggesting this idea for quite some time now)
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I don't think DVD rentals are going away anytime s
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Re: What about NetFlix
In the end do I really want to have another reason not to leave my house!
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I agree with ya
After reading your analysis here, I think I agree. Netflix was just another nail in the coffin (albeit a serious one).
I think Netflix's days are numbered too, although I'm sure they'll be around for another few years or so. I'm not sure what to make of the DVD medium, just yet. It seems DVD has only *just* penetrated the "ubiquity" level, meaning just about everyone has access to a player, and the vast majority of producers have access to manufacturing/distro. I hope the move to online distrubution (Google Video and its ilk) will further level access to consumers, and make it easier for smaller producers to have a voice.
Thanks to TD for keeping this discussion open!
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Re: What about NetFlix
Ummm...i had timewarner for the past 3 years in NY, and now NC, and about 2 years ago they came out with their on-demand service, which was just that. Maybe not quite 2000 titles, but lots of new releases and old stuff. Same thing, watch it as much as you want for 24 hours, then it disappears. Not sure about comcast, i know my parents have it, but am unaware of an on-demand like service.
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bah
yeah, just like itunes killed of cd's.
Perhaps some time in the way future you will be able to download a movie and watch it, for it to become popular enough to kill dvd's you will have to have a consilidated place to do it from. At the very least to manage it. I like having one monthly fee and not having to worry about how much or what I watch.
I would not like to have to find the correct site to download my next anime. Then find the correct site to download the proper movie. I will pay for convenience. I would not like to have to watch the movie on my computer.
I also think there are enough like minded people.
Perhaps 20 years down the line there will be a standard way of getting a subscription for movies and shows on a set top box that's connected to the internet. This not only would kill netflix but also cable tv. It will be great, but it's not happening tomorrow.
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What about tangiblility?
Personally, I like going to Blockbuster down the street and seeing different faces at the store. I appreciate the a lot of the internet has given me. Access to limitless knowledge and porn at the same time. It's a beautiful thing. But sometimes you need to leave your 5x5 room and interact with living, breathing entities.
Netflix, BB, and porn should all be able to coexist in equilibrium.
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re: netflix survival
Offer Porn. Bottom line.
They are leaving so much money on the table trying to be a 'family' company, when they could still protect the kids yet charge a premium to their customers.
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Blockbuster R.I.P.
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Re: Blockbuster R.I.P.
Actually, if and when Blockbuster goes under, I would love to see Netflix offer a brick and mortar store to facilitate the returns of mail-in movies and complement their other offerings. Blockbuster gives its mail-in subscribers 2 free movies from its stores, Netflix could do the same, providing a quick-fix for the most popular rentals and saving the mail-ins for more obscure things like television series, documentaries, and BBC programs.
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No Subject Given
What I want is an intelligent queue of first-run movies sitting on my PVR hard-drive that I can watch on demand. On a hungover Sunday, the movie industry could make a shitload of money off me. I would have gladly paid to watch 3-4 different first run movies last weekend (hangover courtesy of Jack Daniels), instead, I cleaned out my PVR backlog.
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Re: Blockbuster R.I.P.
I wrote all this and sent it to Blockbuster's Corporate HQ when they were indicted in Texas. I included our shredded Blockbuster cards. Never heard a peep from them. And that manager still works at the local store.
It all goes to the "treat your customers like crap" credo. I think my mom will dance and sing when Blockbuster finally closes. Maybe a Hollywood Video will open in it's place...
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No Subject Given
Seeing as there is no realistic replacement for the DVD, those of you sounding its death knell are a BIT premature.
A handful of dorks might enjoy spending a few hours using most of their bandwidth so they can watch a movie on a set top box – but mom and dad who have given up trying to figure out how to use “on demand” much less set the clock on the DVD player will never do it.
And then there is the DRM fight. How are the studios going to “protect” this new format and make sure that no dork makes a copy of the downloaded video? We know that they are not going to be easily appeased.
And how exactly are you going to convince mom and dad to buy this new box, and pay for the new service when they already HAVE a DVD player that does the SAME thing with fewer hassles, and at lower cost?
And what about the folks who don’t live within walking distance of access to broadband? LOTS of folks still suffer with dial-up, and they are not all rural hicks either. The femail man still delivers DVDs to these folks – but the Telco’s don’t – and aren’t likely to any time soon.
NO – DVD’s place as the defacto content distribution media of choice is secure for another decade or so.
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Blockbuster dead? Don't think so.
Many people have gone with Total Access for that very reason - rent as often as you like, and still get the movies without penalty. NetFlix is nothing more than a pebble in Blockbuster's shoe.
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