her34

http://www.betanews.com/article/Bloc...gth/1178118653


i switched from netflix to blockbuster and am happy, but how long can they maintain the current plans?

i also wonder what netflix plans on doing about blockbuster

rfduncan

Why would they do anything? They have a well established business model (which Blockbuster co-oped and added to). I don't see Blockbuster Online being around much longer. First off, they don't even remotely carry the variety of movies Netflix does.

spainlinx0

It could be that they are still having way too many people on their free trials. I think the exchange for a movie in-store is a great idea, and if it wasn't for that I wouldn't have signed up, but who knows if they can keep that up. If they decide to raise prices too much, I will switch over to Netflix, or just go back to DVR'ing a lot more TV shows.

CPA-ESQ.

BB is getting hammered by the "on demand" movies that most cable providers now offer. I don't know anyone who goes "out" to rent a movie anymore - most people use Netflix or use the on demand on cable.

I'm sure there will always be rental places, but they may close some of the unprofitable ones.

Shilex

It's not about the net loss. They'll be working at a loss for a while. It's about the stockholders and the stock prices. The more subscribers they can get, the higher the stock price will go. Honestly, I don't understand how any of these online rental companies can make money. I've been in the independent video business all of my life (we closed our store this year after 22 years), and it doesn't add up (cost of DVDs/overhead vs low subscription fee). I will admit that Blockbuster's Total Access plan is a very good idea however (especially after their "No Late Fee" debacle).

I used to think that our main competition was Blockbuster, but I've realized that it's the movie studios. If they had their way, there would be no B&Ms and they would control all content directly (no middle-men like Wal-mart, Blockbuster, etc) They've tried for years to destroy independents with little-to-no support, shortened pre-order windows, and outrageous prices. We'll see what happens with Blockbuster when downloading becomes more mainstream and quality increases, and studios gain more control over their content.

al_bundy

looked at the financials, they are burning cash and costs are rising a lot faster than revenue. they are probably screwed unless they change things

Brent_MN

A group in my management strategy class just did a presentation on Blockbuster...They said that Netflix's plan for combating Blockbuster was no plan. They were going to stick to what they're doing and wait it out. They don't think BB will last.

tasha99

Well, I canceled my subscription, so they're at least a little better off. Let's all do our part to save Blockbuster now!

fujishig

Well, I hope they stay afloat, since competition is a good thing. Funny that Netflix is waiting it out... I always though Blockbuster would have the capital to wait out Netflix, but it doesn't look like it's going to happen.

The free in-store rentals is a phenomenal promotion that is most likely killing their local stores. Let's see... you put a lot of pressure on the local stores to sign people up for online. Once that happens, though, why would people pay to rent from the store anymore? Sure, the new promotion gets me to go into the store, and sometimes even gets me to hold onto an online rental for an extra day until I can go into the store, but they don't see another dime from me. Are they counting on the extra traffic in the store to increase concession sales or something?

The rumored price plan change/increase won't go over well either.

Charlie Goose

I subscribe to BB online. I haven't returned the mailed movie to a BB store for a free rental though. I signed up so I wouldn't have to go to BB in the first place. If they go under, I'll try Netflix. If they really have a wider selection, I may switch anyway.

rfduncan

Well and that feature does nothing for me as my local (i.e. 2 blocks away) Blockbuster is always mobbed on the weekends when I'd be more likely to want to watch one DVD and then decide to go rent another to watch that night. The place gets wiped out of everything that's been released in the past 6 months!

Dan1boy

I've been enjoying BBO for nearly a year now..in fact, I feel like I'm stealing for the value I'm getting. Can't beat the deal. I bring in 3 envelopes to my store every Tuesday after work for new releases, which I keep an entire week (remember, no late fees before 9 total days!). The following day, my rentals are checked in and my secondary tier of titles are shipped from my online queue. What more could I ask for? PLUS, I get a free instore rental coupon every month.

This won't last. I'm a realist. But I'm enjoying the ride until it crumbles!

RonG617

Isn't Netflix plan the new video service they are offering? It is a no cost to the consumer plan addition. They wouldn't have done it (at no cost at least) if they weren't trying to one up Blockbuster. Also, my local Blockbuster manager told me the in store returns were to drum up more foot traffic in the store. Maybe you will make an impulse buy while you are there. They are constantly running sales on candy, game rentals, used dvd's in my local store now.

StealthStratos

I was just about to say the same thing. Obviously Netflix needs to maintain a high level of service and keep up on current trends, but they can probably just wait for Blockbuster to implode.

When Blockbuster did away with late fees, did it help their bottom line? It seemed like when they realized how much they were losing, individual stores just started doing their own thing, and it made it more confusing for the customer.

Total Access is a great idea, but now you walk into the store and the shelves are bare, thus making traditional brick and mortar renters even less likely to go to the store. There have been many rumors of them switching to two different levels of service: a cheaper Netflix-style plan, and a more expensive plan where you can still return movies in-store. Again, they start out with a good idea but then go and complicate it when they realize it may not be profitable.

I used Blockbuster Online for a while, but it definitely seemed like they had their growing pains: limited selection, crappy website, and unpredictable service. I'm not sure how long Blockbuster can last if Netflix is already outshining them in these areas.

Brent_MN

I do the same thing!! LOVE it. I feel like a thief, too. If the price increases, I would still stay with it I think. They usually have what I want. The best thing about their online service is that they do NOT throttle. Unlike Netflix. Also, they don't ship titles from MD or WA like I was getting some from NEtflix. If the next available title isn't available locally, they skip to the next one. Very good.

Also, as of last year, Netflix didn't have a distribution center in San Antonio, BB did. Mainly why I switched.

fujishig

Yeah, the current Blockbuster in store rental deal is a steal if you just want mainstream movies. I find myself renting movies and returning them without ever having watched them because I run out of time (and this is with the no late fees extended viewing window).

JimRochester

The Blockbuster deal is awesome. People like me are the reason they are losing money. With Netflix I was lucky to get 12 a month. With Blockbuster I can get 12 in the same week. Now I will admit that sometimes I have trouble finding something on the shelf to get, however with over 2000 titles in my collection and the extra hundreds I've gotten from BB, I'll give them a break. Most of the in store rentals I get are new releases. Most of the online stuff is the documentary and TV. Stuff that's tougher to get in the stores anyway. I hope it sticks around, for $20 month I get at least 35 new titles, usually more.

Heat

$20 for that? Wow, makes me kind of wish that Blockbuster was still around here. Family Video drove them out of the nearby town of 110,000 people (Springfield, Illinois), the last BB closed a year or two ago.

And just a sidenote, but the $46.6 million loss is an overall loss and not just from their online program.

xxjobseyes

anyone know if they are planning to run that promotion where you can bring in a netflix envelope sleeve for a free rental?

calhoun07

They are bleeding money, closing stores all over, getting rid of high paying positions, in eyeballs in debt to creditors.

In other words, I wouldn't hold your breath on that.

xxjobseyes

i'd think that because of the losses they'd try more promotions to steal business away from netflix...of course that all depends on how successful or unsuccessful the last time they did that was.

fujishig

I don't even understand that program. If you bring in proof that you're using a competitor, they'll give you a free movie? Doesn't that sound more like ENHANCING netflix service? I'm curious if this "worked" as well.

John-In-VA

For awhile I was bringing in my BB return envelope and getting a free rental, but honestly, I just don't find the time to do that AND watch the online rentals, watch movies I own, watch tv, read books, hang with family, etc..

orangecrush

My wife is usually up late feeding our newborn and we probably go through 30+ rentals a month. At $18/mo, I definatly feel like I get more than my money's worth with blockbuster online.

MechanicalMan

I don't know about that. I think many people who use Total Access probably wouldn't set foot in a Blockbuster B&M without it. If Blockbuster online didn't exist, I would personally be using Netflix and the public library, not Blockbuster B&M stores. Also, franchise stores are paid something for the exchange. So the stores in my area are now receiving some money because of me, whereas in the past, they didn't receive a dime from me.