Is Blockbuster Getting Ready To Shutter Their Doors?

Posted by on Apr 8, 2009 | 18 Comments

There are some indications that the once popular Blockbuster may have to close down since it now appears that the company is unable to compete in a changing market place. The first indications that Blockbuster was getting into trouble was when Netflix started to cut their pricing, a move that Blockbuster had trouble matching. In an age where convenience counted, running around returning DVD rentals had meet its match by the convenience offered by Netflix of home delivery. 

But was this alone the cause of Blockbusters demise. Or was it just poor business decisions?

The death knell may be ringing for Blockbuster. Today the video-rental giant admitted that if it cannot complete the financing deals that it is currently working on, there is a good chance the company may be forced to shut its doors. While the company last week said it was in the process of getting a $250 million revolving loan from creditors, that may be in jeopardy.

Why? The loan apparently has some conditions to it, and Blockbuster is now not sure it can meet them. Even worse, whether the loan goes through are not, it is not even sure that would be enough to save the company.

I became a Netflix convert about four years ago. Not having to go to our local blockbuster, standing in line waiting to rent and having to return the movie was enough to convince me to make the switch. Netflix has been a reliable and inexpensive way to rent movies for myself and my family.

But what about you? Do you still rent movies at Blockbuster or other rental company or have you switched to Netflix?

Comments welcome.

Source.

  • http://angrykeyboarder.com Scott Beamer

    You only converted to Netflix 4 years ago? And you’re writing on Lockergnome?

    Wow….

  • http://www.ronknights.com Ron Knights

    I don’t like the idea of going to a video store. There isn’t one really close to me.

    I’ve had Netflix, on and off, for a couple years. My account is currently on hold.

    I just don’t see a very large variety of movie rentals at Netflix. Their online video selection is even worse.

    I think I’ll save my money for other things.

  • Mike

    I used to be member of NetFlix years ago. I have been blockbuster online customer for year or more now, and been happy with it. No bluray surcharge, and can return them in store (ones here dont seem real crowded , at least when I go to them) and get one free, and the next in my queue is sent as well. Not that I take advantage of that often though.

  • William Bokunic

    @Scott Beamer: I don’t get what you’re implying? From the looks of it you either think Netflix was founded more recently than that or you expect all lockergnome writers to have switched to it back when it was founded in 1997.

  • http://wowzzy.com maria

    I’ve used netflix for years and prefer it to blockbuster. Netflix provides a convenience that blockbuster or any other movie rental store cannot match.

    I do agree that there watch instantly selection is horrible and needs improvement. However, I’ve never really had an issue with finding something that I would enjoy watching.

  • http://simonsalt.com Simon Salt

    I doubt that the Netflix model has been the threat to Blockbuster that you suggest. Blockbuster has long had the same video by mail service, I have used it for years. The advantage they added was that rather than being restricted to the mailbox you could go into the store and drop the video off and pickup a new one right away – no waiting for the dvd to come in the mail. I think it is more likely services like Hulu and the abundant use of DVR’s and other devices have moved the emphasis away from DVD watching for a lot of people. DVD’s are now just one way they are entertained. They have a lot more options for stay at home entertainment than previously.

  • http://www.tekamba.com Greg Hicks

    I use netflix ALMOST exclusively. I will from time to time rent from a redbox if I haven’t happened to get my newest netflix movies in yet. But I do consider if I really want to have to drive back over to the redbox location the next day.

  • Java Roaster

    We still use Hollywood Video because we have high school kids at home and they have friends over they go to the video store sometimes to get some movies right on the spot instead of waiting for them to come in the mail in 1 or 2 days.

  • Michael

    We switched to Netflix a few years ago and never looked back. Of course I avoid the convenience of a brick-and-mortar store, but I also avoid awful customer service that my local Blockbuster dishes out in spades. Overall, we’ve been quite pleased with Netflix. With the addition of “free” on-demand movies that we’ve watched with a Media Center PC (using Anthony Park’s MyNetflix) http://www.anpark.com/index.php/2009/01/13/update-to-mynetflix-fixed-login-and-watchnow-genres/
    and the usual USPS distributed DVD’s, I have little to complain about.

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Hi everyone,
    Thanks to all of you for your comments and for sharing your experiences with us.

    Regards, Ron

  • http://lisa-lee.com Lisa Lee

    I still use Blockbuster. I can go there, find what I want, rent it, and go home! I dont have to wait a few days or even one day. It’s there! ;) Well, usually. ;)

  • Don Naphen

    I think the demise of Blockbuster started years ago when competition was almost non-existent. Their late fee policy was a killer and if one didn’t like it … tough! It was practically the only game in town. Ah, and then along comes Netflix and the mail way of doing business! No expensive brick & mortar facilities to support and the rest is history. Blockbuster is realizing too late that their monopolistic way of doing business was their downfall.

    In anycase Ron … GO RED SOX !!

  • Matyas

    I don’t want to wait for a day or two in order to watch my movie. I’d rather rent at Blockbuster or Hollywood videos and watch it that same day. Can it really be that inconvineant? I never understood how.

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    I think Blockbuster was inconvenient for me because of the following reasons:
    There were times the movie I wanted was unavailable. The store was crowded, especially on weekends and the wait to checkout was sometimes 20 minutes or more. Than another return trip to bring the movie back.

    True. This may only apply where I lived at the time. But for me Netflix provides a better way to get the same movies at a lower price. And no late fees! LOL

  • TJ

    I haven’t heard anything about Blockbuster having too much of a problem that they might have to close shop. Blockbuster is headquartered here in the Dallas Texas area and I haven’t heard anything.

  • Don Naphen

    Well “TJ”, unfortunately most companies don’t advertise their problems so as not to lose customers AND employees. Employees especially are almost ALWAYS the last to know. Most rumors start within the business community, where investors have much more information available. A good example would be CIRCUIT CITY, where problems began to surface long before the general public was made aware of them. Once vendors began shutting off the lines of credit, it became almost impossible for the company to function.

  • http://www.hoverspot.com/netherealm NetheRealm

    After being both an in store then online customer for the last 6 years = $1,000 I say Good Riddance To Monopoly BigBrother’s Crappy Customer Service (I emailed them 10 times asking them to fix the top 100 page which 3 months ago suddenly listed only the top 25, Guess what they still never fixed it after repeatedly saying they’d put it as a top priority) (Then recently they shipped only 2 of my 3 movies while I emailed complaints for 2 weeks) er BlockBuster. Oh yeah & BB doesn’t carry 1984 starring John Hurt but guess what it’s available to stream instantly on Netflix. Long live Netflix & PS3 streaming!

  • AJ

    I just saw this story and wanted to chime in. I left Blockbuster probably about 4 or 5 years ago. The reason I left is because the store which I rented heavily from said that I did not turn in a video. That was not first time that had happened. Once we actually walked the floor and found the video they claimed I did not turn in. The manager even admitted that they had just fired an employee who was not checking in the rentals. The manager, who must not have gone to business school, insisted that a pay for a movie that I had turned in a month or two prior. I told him I would never shop at Blockbuster if he made me pay for their mistake. He said it was my problem and made me pay for it. He may have recouped his money for the video which they lost, but what he failed to realize is that he lost hundreds if not thousands of dollars from a vaulable customer. I have never been in a Blockbuster since. I will never shop at Blockbuster again. I don’t feel sorry if that chain goes under. Netflix is ten times better!