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| Looks Like We Won't Be Making it a Blockbuster Night Anymore |
In case you may not have heard, a little company called Blockbuster Video officially filed for Chapter 11 Bankruptcy this morning. The move towards demise was long predicted since last spring, and is due to the ever changing media market. Thanks to companies like Netflix and Redbox changing the way people watch and rent movies, Blockbuster Video, once the premier movie-rental company, is no more. The company says it plans to continue operating its more than 3,000 stores nationwide, but says all stores will be evaluated for profits. At this point it's honestly only a matter of time before the company is liquidated. Blockbuster has been around since the mid 1980's, which is pretty much as long as I've been on this earth. I have fond memories of going to Blockbuster as a kid, mostly for the video games, but I refuse to let nostalgia make me feel bad for this company.
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| Redbox, a seemingly deceptive entertainment powerhouse |
First off, Blockbuster has refused to adapt. When Netflix started way back in 2002, Blockbuster shunned the company off as a mere fad. Coinstar saw the value in offering a cheaper DVD-Video renting service, and began placing its Redbox kiosks across malls, supermarkets, and even fast-food joints nationwide. Once the subscription base for Netflix started to skyrocket, and the popularity of Redbox's $1 a day rental fees took off, Blockbuster tried to ride the bandwagon and begin a mail-service and kiosk plan of its own, but it was too little, too late. I think the final nail in the coffin came when Netflix started its online streaming service. It just came down to ease of access for consumer, and Blockbuster was far from it. All Blockbuster really had going for it was that it could hold new release films on the first day they were released. Netflix recently inked a deal with some movie studios like Universal, Fox, and Warner Bros. to not hold new releases for 30 days in exchange for receiving more copies of the films for availability.
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| Netflix, this generation's Blockbuster Video |
Besides the obvious fact that Blockbuster refused to adapt, it was just a hassle to make a trip to the video store. Sure, everyone had a Blockbuster around their block, but once the company began its decline in the late 90's, many stores were getting the big axe, making it more difficult to make the trip. Not only that, everyone had the same experience of going to Blockbuster to rent either a video game or a movie, and find that what you were looking for wasn't available (even after checking with the front desk, which you knew was a complete waste of time). Even if by the crapshoot chance you DID come across the product you wanted, you had to deal with an $8 rental fee that got you about 2-5 days, and that;s NOT including the likely chance of paying late fees. One would also think that with Netflix offering an $8 a month subscription base, Blockbuster would at least reduce the rental fees of its movies. But nay, new release rentals still cost about $6 after taxes. Why would a consumer pay $6 for one movie, when they could easily get at least 6 movies in a month for that same price. Whatever the case may be, Blockbuster is a victim of its own success.
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| All right! Yet another game not in my queue's Top 15 |
Although I am all for the demise of Blockbuster, I do admit my heart goes out to the thousands of employees who are most likely about to lose their jobs. It's an unfortunate side effect of today's economy but when you make as many mistakes as Blockbuster has, it was really destined for failure. I'm not saying Netflix, Redbox, or even Gamefly are perfect. I personally have a gripe with Gamefly over its supposed promise to deliver the games you want, when you want, but that's for another blog entry. The point is you have to evolve as a company, and hopefully Blockbuster's failure will reflect that.
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