Bye, bye, Blockbuster?
Filed under: Extracurriculars, Shopping, Technology, Recession, Bankruptcy
I actually rented a DVD from Blockbuster Video last weekend, for the first time in three years. Not because I missed going there, it was because my Netflix had not arrived in Saturday's mail and I was bored.I'm like many people who have traded bricks for clicks when it comes to renting movies. I agree with fellow WalletPop blogger Barbara Bartlein about Blockbuster's screwy pricing policy. Plus, when Netflix offers everything from obscure Italian horror flicks to Season 1 of "Six Feet Under," it's hard to be impressed by Blockbuster's three-wall display of "New Releases," most of which have been rented, and its remaining few aisles of "Favorites" that are continuously airing on cable networks like TNT and USA for free.
So Blockbuster is probably blaming people like Barbara and me as the reasons why it may not survive the recession. Its auditors say the rental company is probably not generating enough cash to fund operations, meaning Blockbuster may soon be filing for bankruptcy. Seems like Blockbuster just has too many competitors, from Netflix to iTunes downloads to those red kiosks near grocery store checkout counters offering new releases for 99 cents. Why bother making an extra stop on the way home to pick up a DVD when you can just click "Add to Queue" or "Download" on your computer?
Mike Madden of Salon has a good take on why Blockbuster belongs in "The Brand Graveyard." I too don't have much sympathy if Blockbuster tanks.
When VCR rentals were de rigeur when I was growing up, I remember going to my corner video store, where the married owners Patty and Randy would recommend a new kid-friendly release for me and promise my Dad they would set aside a copy of the next James Bond film when it came out on tape. I would chew away on Patty's homemade brownies while she and Randy opined with my parents about why Hollywood didn't make movies the way they used to. They didn't make local corner video stores like they used to either, because after Blockbuster came to town, Patty and Randy had to close up shop, despite loyal customers like us trying to keep them afloat. So we were stuck with Blockbuster's walls of schlock, its teenage tape stockers whose top picks were Beavis & Butthead and Mortal Kombat II, and its neon blue-and-yellow color scheme that was as screamingly mediocre as any Hollywood "family friendly" film.
Netflix was a godsend -- I could pick any movie, documentary or obscure TV series I wanted. Netflix did a good job of suggesting other flicks I might like, and I got far better movie recaps from its "Member Reviews" than I did from any surly Blockbuster staffer.
I still haven't returned my Blockbuster movie, so I'm probably going to be charged $2 for each day I missed. I doubt my $6 late fees will help the company get out of its hole. Ironically, the movie I had to settle for (since everything else was rented out) was the Angelina Jolie flick Wanted -- a word most DVD renters wouldn't use for Blockbuster anymore.



Reader Comments (Page 1 of 1)
4-10-2009 @ 2:23PM
Confused Reader said...
Um...so last time I checked blockbuster doesn't have late fees that compile daily anymore? I wonder if you actually visited a Blockbuster or just really needed something to write about? Most of your article is way of the mark...please see the latest rating review (link below) which shows Blockbusters Future credit rating as "stable" by a reputable industry rating firm (which I'm sure is quite a bit closer to the mark than your ill contrived blog here)
http://www.bizjournals.com/wichita/stories/2009/04/06/daily48.html
P.S. This is why I never read blogs. They are three parts personal opinion, and two parts BS. Please, bloggerworld, stop spewing unfounded garbage just because you fail to find real worthwhile topics to write about :)
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4-10-2009 @ 2:51PM
van said...
I disagree that my blog is way off the mark -- while Blockbuster may now have some breathing room (http://www.google.com/hostednews/ap/article/ALeqM5iTpPNcWoLdjaYH9nYAP7ig3TM9zAD97B86884), it still lacks a business model that will last during tough times. Fewer people are renting at its stores, it has much more competition than ever before, and it still is pricey. For example, its' get-three-DVDs-at-a-time offer is $20, while Netflix is $17, and the latter has better user-friendly features on its website. So basically, what makes Blockbuster stand out from the other DVD-rental sources? I don't see anything, and that's why I don't think Blockbuster will be around much longer.
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4-11-2009 @ 11:12PM
Stephen said...
I just rented from Blockbuster for the first time in months the other day and I can confirm that the late fees are back in effect. The movies are a 2 day rental with a new return time of noon (not midnight anymore). If Blockbuster wants to stay competitive the need to offer something better than competitors not make renting from them more of a hassle, which is what the changes seem to have done in my opinion. They also need a better selection. I find it very limited and selective. If I want to rent a movie and all of it's sequels (regardless of quality), I can't do this at any Blockbuster. The may have Number 1 and then 3 and 6 etc. but not all of the movies which is frustrating. Also the pricing for renting seasons of show is annoying. Yes you can rent 3 favorites for 20 dollars, but most seasons of shows are 4-5 discs so to get a whole season you need to spend more money in their lower, not as economical tiers to get the whole season to watch.
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4-13-2009 @ 7:06PM
JM said...
I managed a blockbuster for four years. There were thirty six stores in my franchisee, and I visited all of them at some point or another. Every retail place has it's share of surly customer service teens, it's inevitable, but I can guarantee you that all of our long term employees were there because they loved the company, the customers, and what they did. The majority of the staff I had were some of the best people I have ever worked with, to this day. And that's really funny to me that you can sit there and complain about the employees with some of the horror stories I could tell you about customers. You probably were one of those customers.
You know what, stick to your Netflix, it's probably better for everyone if you keep social interaction to a minimum.
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4-13-2009 @ 3:14PM
Jason said...
Something that really pisses me off about people like you, is that everyone who uses netflix, redbox, or any other rental service that takes credit or debit information all brag that your rental method is the best, but coming from a current Blockbuster employee like myself, please understand that not everyone has debit or credit. What will they do in this situation? We have since changed the rental options that are open to customers and I'll give you an example. It used to cost $4.69 for all new releases no matter if they were 2 day or week long rentals. Now you have two options, you can rent on a daily plan or a 5 day plan. for the daily, it's $2.50 for the first day and a $1 everyday after (starts close of the day after initial rental) or $5 for five days. Now I don't know if this is national yet, but it soon will be. Also, if you are a blockbuster customer, don't say, " well, it looks like netflix and redbox are kicking your butt." Speaking from experience, No employee gets annoyed faster than a customer who thinks they know everything. And the Irony is, this person is still spending money at a blockbuster.
One last thing, its not that we are losing business, rather it's the fact that blockbuster has actual stores, not kiosks or websites. so in essence, our competitors don't pay for 7500 stores and tens of thousands of employees. In my store, we're gaining customers.
I'm not writing this as a loyal Blockbuster drone, but a very desperate working college student who is getting married in two months, so if this seems like a rant and condescending, I am truly sorry.
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4-13-2009 @ 8:37PM
van said...
I'll address comments #4 and #5.
Jason, best wishes on your upcoming wedding and college degree. I don't say I know everything, but I am a person who has used Blockbuster for years and can honestly compare it to iTunes, Netflix and Redbox. The latter three charge a straight fee per movie or month to rent DVDs, while Blockbuster always has these pricing tiers -- that are always constantly changing. Why can't Blockbuster just charge one per-day fee and one late fee and stop changing them around? And as I said in my blog, I do like local video stores -- it's just that Blockbuster lacks the depth and breadth of movies and film recommendations that the independently-run stores I've been to have.
As for JM in #5, maybe it's true that every retail place has it's share of surly customer service teens but I don't think it's "inevitable". If customer service is low on Blockbuster's list of priorities and the company doesn't emphasize to staff to be helpful to customers, what's the difference between renting a movie at your store and renting it online? It's cheaper for the latter, and I don't get the surliness. And if you consider me "one of those customers," that reflects what you think about Blockbuster customers in general.
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4-17-2009 @ 11:56AM
Red said...
I found it funny when you said that you had to settle for Wanted.(because everything else was rented out). That Blockbuster seems to be doing well without you.
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5-07-2009 @ 11:40PM
Michael said...
I love it when complainers say they "never read blogs". Well, you read this one. And nobody is the better for it that you did.
Nicely written blog, BTW.
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5-21-2009 @ 11:44AM
Captain said...
I have been a store manager or MMS (multi-Store Manager) with this company for years. I started by working in McKinney, TX. Probably the Eye of the Storm, as our VP of Sales and President lived but only a few miles away and frequented my districts stores. I quickly honed my skills, naturally for survival, and became well versed in the S.O.P (Standard Operating Procedures) of Blockbuster. Every store in the Nation has a copy of this book. It would take 3 or 4 Bibles to accummulate to same amount of material, ranging from basic duties, to liability and HR related issues. I studied that book, like I'd die if I didn't know it from cover to cover. I most recently moved to Santa Monica, CA. I was hired long distance, obviously because of my resume and background, there wouldn't be a problem with the transfer. Unbeknownst to me, California had a huge class action law-suit filed against Blockbuster by employees who claimed they weren't getting their breaks and meals. Much to my surprise, I remembered that "Salaried" Texas doesn't really care about my "meals or breaks", so out here (California) it was a huge relief and welcomed change, until I found out that you have to manually report and document these breaks for legal reasons. I soon realized how difficult it was to actually be able to take my allocated breaks and lunch because of the thinly spread labor force and hour alottment. I was instructed that if I didn't "clock" that I took these breaks, a "Premium" hour would be added. Basically, meaning that I would get paid an hours worth of work for a supposed ten minute break and so on for the 30 minute lunch. I was also told that "Disciplinary" action would be taken if I received or my employees received "Premium hours" because of the budget restrictions. I was literally told to falsify information, to say that I got to rest, when I was really working, penalty being disciplinary action, possibly termination. I found this to be extremely unnerving and 4 months later, found myself "let go" because of trying to recoup hourly wages and overtime from 2 months ago. There is no longer an HR department here, just six people in a corporate office (Burbank,CA) who handle over 400 stores in California and neighboring states. I was told to sign a release after a weeks suspension, which stated that I received all my current and past owed monies and was leaving with a smile on my face. I said, "hell no I'm not signing that." So now I begin (TODAY) on my legal path to freeing so many hundreds of enslaved employees from this company. Like Moses, I will use the Knowledge from this Evil Empire to bring down Justice for it's people. I know the company and I know the Rules. They are broken on a daily basis out here, but if you rattle the cage, they will unlock it and let the lions loose. So be it! I will not rest until this company is held accountable for the Civil rights violations with which they are abusing on a daily basis to Extremely Good People!!! Salt of the Earth, would be how I describe these employees, but if you manage to survive long enough, it tends to drive them bitter. This cancerous company needs to humble it's self before the foundation it was built on, good, decent, hard working people; Who only want to take care of their families and have some form of stability! Justice be done and Lord be with me on my Journey!
Please, if you have any information about the "Class Action" lawsuit which occured in Los Angeles and affected all of the California Stores, please email me back with that case...As I will be in talks and negotiations, beginning today. My attorney asked me for the case file and I have tried to find it online, with no luck. Since I was new to California, all I know is of the lawsuit and that it has extremely put a clamp on Blockbusters power here, but other than that no one ever gave me specifics or made me privvy to the actual details. Thanks for you help and understanding! Been there my friends.
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