Is there any hope for Blockbuster?
How do you tell something great it’s time to say goodbye?
Who, in 1994, would’ve ordered Lassie put down? Who, in 1991, would’ve suggested Magic Johnson retire? Who, in 2008, would’ve urged The Wire not to come back for a sixth season?
And who, in 2010, is going to tell Blockbuster the ride’s been fun? Because Blockbuster, it’s probably time to say goodbye.
Yes, Blockbuster has fallen on hard times. The home video giant, the place to be for all your movie and (most of your) video game needs in the ‘80s and ‘90s, appears to have joined newspapers as just the latest victim of the Internet and modern consumer culture, unable to keep up with the times.
With more and more viewers turning to alternative ways to catch their home theatre action, Blockbuster’s business has slumped with almost remarkable consistency, reporting losses of nearly $1 billion since 2007.
And, after missing a $42 million payment to bondholders earlier this year (an extension was granted), the Wall Street Journal reports that the rental chain may just be headed towards a Chapter 11 filing in 2010: bankruptcy for Blockbuster.
Should Blockbuster actually seek bankruptcy, which will restructure the chain’s debt and free it from some 500 underperforming franchise leases, this might all but sweep the dying franchise under the rug once and for all – if not from a business operating stance than one from a consumer’s perspective.
With a delisted stock price that hovered around eight cents per share Monday, to say Blockbuster has become an afterthought would be putting it lightly. Louie Anderson is an afterthought. Blockbuster is hardly even on the map.
For all its cash flow pitfalls – of which there are many; the Dallas-based corporation lost $69.3 million for its second quarter to leave it $136.4 million in the hole so far this year – the sins of Blockbuster have always been tied to relevance.
In an age when Netflix, iTunes and video streaming sites have seized the movie/TV rental market, Blockbuster’s strategy has remained largely unchanged (even its Blockbuster On Demand was painfully late to the party) and, in turn, largely unprofitable.
Indeed, the cards seem to be stacked against Blockbuster and any return to prominence appears unlikely. News this week that Google and YouTube may soon team up for pay-per-view rentals (“Buy-bye Blockbuster!” opines MSNBC) surely doesn’t help, and neither does word that Boise, Idaho – a prominent U.S. city with more than 200,000 people – will close the last of its Blockbuster franchises on Wednesday.
Who, then, can save Blockbuster? Maybe nobody. Blockbuster was surely great it in its time, but maybe, as Russ Britt of the Wall Street Journal writes, it’ll fade away as the “poster child of a video age gone by.”
By Jason Buckland, MSN Money
Posted by: kristy | Sep 1, 2021 11:37:59 AM
Sorry blockbuster,
there is no hope. Unless they some how come up with a way to restructurize their business. i.e. close down all the retail stores and start up some internet company, or keep their retail stores open and sell something else.
But so long as they remain renting videos i can't see them making it much longer.
Sorry blockbuster, it was a fun ride.
Posted by: Dave | Sep 1, 2021 12:42:05 PM
Maybe the model is different in Canada than the US, but the Blockbuster outlets I have frequented over the past 2-5 years in Toronto & Calgary are ALWAYS busy, especially Thu/Fri/Sat nights. I have a hard time beliving that these outlets can't be profitable. Perhaps the outlets I frequent are the exception to the rule, but I would hate to see ALL Blockbuster stores close.
Posted by: Don | Sep 1, 2021 1:31:11 PM
Oh the irony. remember the little local store that was the best until the big chains, such as block buster moved in? I used to be able to walk half a block to rent the latest release. I hated block buster. I once stopped going for 4 YEARS until a late fee levied in error was removed from my account. 4 years of lost revenue and I watch a lot of movies. the fact revenue is down a function of how crappy they were. Honestly did you really look forward to going there? Im not sorry to see them go. They wont be missed at all.
Posted by: Greg | Sep 1, 2021 2:53:59 PM
Ill have to agree with Don...many of the interactions I experienced with theyre staff over the years left me feeling like "WHAT am I dealing with these guys for"..LOUSY interpersonal skills and poor customer service..
I have to deal with some of theyre locations on an ongoing basis..my company services them as an account..same thing...only one wwould think that they might be nice to the guy tha brings them theyre pay checks..
I dont feel sorry for them..market economy RULES...and they seemingly deserve to be GONE!!
Posted by: Darren | Sep 1, 2021 4:00:31 PM
I knew I shouldn't of wasted money on that blue ray player.
Posted by: Steve | Sep 1, 2021 5:58:01 PM
Yes there is hope for Blockbuster. They can stream movies and games online and in their shops they can sell coffee & donuts with friendly staff. If they start doing this no later than 2004 they can get a jump on the competition and corner the market. Win, win.
Posted by: mark christian | Sep 1, 2021 9:17:05 PM
dont forget the guy who started blockbuster has a history of racking up debt and bankrupting corporations,, feel sorry for the shareholders of this stock,,hes probably owner of an online casino now based offshore where the computer knows what cards your holding when you bet,,
Posted by: Jen | Sep 1, 2021 10:48:17 PM
I'd be happy to see them go - they treat customers terribly. I too had late fees levied in error and so stopped going there about 4 years ago. I rent ALOT of movies, and so Rogers has enjoyed my business over the years. Blockbuster deserves what they get.
Posted by: Sanj | Sep 1, 2021 11:47:20 PM
I happen to luv Blockbuster. I have been a regular their for over 2 years and have earned a gold membership. The location I go to - Eglington/Mavis is excellent for customer service. The main reason they are failing is because of the Internet. You can download almost anything! Maybe the laws need to be stiffer. It is a shame that Canadian Laws cannot protect against internet piracy. I do not blame Blockbuster for this. I blame us, the consumers who want everything for free and are not willing to give back!!!
Posted by: Rye | Sep 2, 2021 12:17:28 AM
Redbox has gone and murdered another video rental chain... whos left?
Posted by: Tracey | Sep 2, 2021 10:55:04 AM
Any hope? No, their staff is often too busy to deal with the customers and they tend to only have in stock what people don't want to watch and then the late fees..... As for the luddites that want to stop people from using the internet for movies from netflix etc, get with the times grampa not all progress is illegal and people only tend to 'pirate' what cannot be legally obtained. Ever try to find back copies of Hogans Hero's? Or non-Hollywood films at Blockbuster? Good luck. The only shame is that the Blockbuster staff will be working in other shops, or unemployed.
Posted by: Big renter | Sep 2, 2021 2:14:35 PM
Used to use Blockbuster until they sent a collection company after me for a bogus late fee I had refused to pay. We're talking less than $20. As much as it pained me, I paid the collection agency because my credit rating matters to me. Needless to say I never set foot in a Blockbuster again, nor has any member of my family. That was about 5 years ago. Brilliant marketing plan.
Posted by: Jack | Sep 5, 2021 12:50:36 PM
I did not know Blockbuster still existed! Do some people still rent movies?
Posted by: Skipper | Sep 6, 2021 4:45:51 PM
Maybe Blockbuster can team up with Tim Horton's and show their videos to all the old farts that seem to have found a new social life by hanging out at Tim's all morning!...Yeah, good-bye!
Posted by: Thurdagree | Sep 24, 2021 2:46:34 AM
Although it was a long time coming, it is sort of a shame. I remember in my youth going to blockbuster frequently for the latest Nintendo 64 game release or to nab a newly released movie to watch with the fam. I beleive blockbuster has a fighting chance, im going to invest a small amount on the possiblity of what may become of blockbuster. The chances are extremely slim and they just filed for chapter 11 but the shares have reached an all tim low and probably will lead to total collapse or maybe not??