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Blockbuster and Borders -- two of a kind
Blockbuster and Borders appear to be stuck in the same boat - one that's sinking, anyway.
Blockbuster Inc. is bankrupt because it couldn't keep up with rival Netflix, which has a fast-growing digital business and more mail-order DVD subscribers. Borders Group Inc. is in deep financial trouble because it didn't embrace online sales as quickly as competitor Barnes & Noble.
According to separate reports in the Wall Street Journal:
Blockbuster is asking for more money to help it emerge from bankruptcy protection and also is considering closing as many as 1,000 stores. Borders is on the verge of filing for bankruptcy. The chain -- which already closed hundreds of stores, can't pay its bills and has issued IOUs to landlords and publishers -- apparently has hired bankruptcy and restructuring lawyers.
Blockbuster is hoping digital movie sales, steaming capabilities and an expanded mail-order and kiosk business will buoy its business after bankruptcy - or at least help it compete with Netflix.
That could be wishful thinking. The home entertainment company had 1.2 million subscribers to its DVD mailing service through the first nine months of last year, down from 1.5 million in the year-earlier period, the Wall Street Journal reported. Netflix had 16.9 million subscribers during the same time period, up from 11.1 million a year earlier.
Meanwhile, Borders could be writing its final chapter -- titled, "Missed the boat".
Blockbuster slit their own throat when they determined that making money off late fees and other charges would be the way to go. I will never use a Blockbuster again for that very reason and will be happy to wait 28 days to see something on Netflix if it means I can avoid dealing with Blockbuster.
Amen to that! Blockbuster's idea of doing a 180 is closing 180 out of over 3,000 stores. ALL Blockbuster stores need to be closed because Blockbuster stores are a huge money-eating eyesore. Even if all stores close though, Blockbuster still doesn't stand a ghost of a chance.
A majority of customers can recall an incident involving being overcharged, having an unjustified late fee or dealing with clueless employees. Customers retain and associate these experiences with Blockbuster and then choose to take their business elsewhere.
The Blockbuster brand is permanently tarnished and will never catch up to Netflix and Redbox in this lifetime. It truly is a mystery why Blockbuster is being kept alive with its history of losses and no strategic plan. Hopefully someone will do what it takes to pull the plug on Blockbuster before the end of the year.
First off Block Buster has plans to try to sell off all the stores that are not making a profit and free up some money. If they close 1000 stores at each atleast over 1 million dollars they are going to free up alot of money. They are also putting out 10,000 kiosks like redbox as well as online streaming through the TV. They will have the best of both worlds online streaming and Blue Box Kiosks. Also movies will come out 28 days before anyone so you tell me who is missing the boat here. I strongly think Block Buster will come out of this whole and emerge stronger than both companies. This is America and Block Buster has been with us for far to long its time to bring down these Newbies.
In the days of high customer traffic, our local Bradlee Blockbuster (Alexandria VA)was the primest of prime locations for Cubs Scout popcorn and Girl Scout cookies. The manager there was hugely supportive, and very community-minded. Its inevitable that business models will have to change, but I will always admire and never forget the manager of that store and what she did to help her community. Cheers to Blockbuster!
