Codebreaker

Warner Bros. stops doing Blockbuster any favors

John Moe Oct 27, 2011

If you can still find an open Blockbuster store somewhere (it’s a little like Sasquatch, some people swear they’ve spotted one but the scientific evidence is debatable and all the photos are blurry), you might notice a poster boasting that Blockbuster gets new releases 28 days before Netflix or Redbox. But Warner Bros. has just revoked that right and other big studios might follow suit. It’s happening because of the streaming service that Blockbuster launched along with their newish owner Dish Network. Warner Bros. wanted Blockbuster to survive and compete with Netflix and Redbox, which offer lower margins and less direct compensation.

Blockbuster stores are now trying a kind of adorable solution to this problem. Employees are going to Target and Wal-Mart, buying the new release DVDs, and putting them on the shelves. I’m no MBA but this doesn’t seeeeeem like the most sustainable business model.

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