Archive for: blockbuster
If there was ever a better example of how not to run a company based on old business models and physical inventory — wait a minute… — Blockbuster would take the cake. Anyone with half a brain cell can figure out that if you’re business model revolves around physical goods such as movie rentals, at some point the digital transition is going to hurt your business. Apparently Blockbuster had visions of VHS and DVD’s lasting forever in their unicorn land. The real world as of late hasn’t been so nice to them.
But they have an earth shattering solution — video game rentals by mail! *Facepalm* That was a great idea…four years ago. The apparent plan was sent in to Consumerist by one of their readers who just so happens to be 1 of 7 people enrolled in Blockbusters Total Access Plan, a video rental by mail service. “Emily’s” recent email from Blockbuster had the following to say on the matter:
In addition to sending your favorite movies by mail, Blockbuster is considering giving Total Access members like you the ability to rent video games by mail for no additional charge. You would be able to choose from over 3,000 different games, including many popular new releases. All you’d have to do is add them to your Queue, and we would send them to you just like we do your favorite movies! Please take a moment to complete the following short survey so we can gauge your interest.
If you’re a big Gamefly user and have a knack for sucking up all the movies you can, having a free-of-charge addon to your movie rental plan that brings video games along for the ride sounds pretty spiffy. And for the more mature generations out there not so keen on this whole digital thing yet, it’s quite the head turner.
But I can’t help but feel Blockbuster would put themselves in even greater peril if they put the rest of their money and marketing mojo behind such a service. Think about it — digital distribution methods –whether for sale or rental — are increasing each year as the need for physical products becomes less and less mandatory.
Blockbuster is effectively using outdated business models…again. Does anyone at that company know how to come up with a good idea in the digital age? I’m thinking not.
It’s weird how looking at this rental-by-mail set up for Gamefly is good yet Blockbuster trying it out brings about the feeling I’m dishing out now. Of course, it’s worth highlighting again just how late to the game Blockbuster is. It leaves the same bad taste in my mouth just like the whole SD rental thing from last year. Who in their right mind is going to drive into town to rent a digital file on a physical disc? Ya, that was a good one…
So, how much longer ’til Blockbuster goes belly up?
Consumerist
Besides the epic failure of music labels’ inability to find a working business model in the digital age, there is one other contestant in particular vying for “worst performance in the digital arena ever” award: Blockbuster. When I was a kid (not too long ago), I remember going to Blockbuster sometimes as often as a couple of times every week. It was great. The competition with other locals Hollywood Video (now deceased) and Family Video (greatly downsized) ensured the movie rental market was always on the up and up. And then the digital revolution happened. Since then, Blockbuster has for all intents and purposes, failed to figure out this whole disc-less society.
Late last year, they proved even more that they didn’t understand this new digital age when they proposed a pilot program of movies on SD cards. For the first 10 seconds it seemed like a decent alternative. And then the gears started turning — why driving miles to the movie store (wasting all kinds of physical resources) to pick up a digital file stored on a tiny card? Downloading the same file is exponentially easier. Netflix in particular got it. What happened to Blockbuster?
How about another round, shall we? Building off the success(?) of the OnDemand movie download service currently available only to HTC HD2 users, Blockbuster has announced that other platforms are on their list. According to the chain, Android-powered Motorola handsets will gain support sometime this year. One nifty little feature that I have to give Blockbuster credit for is that the OnDemand service actually allows users to DL full movies to store locally. Granted, DRM is laced throughout, but still. When given the choice, if I’ve got a few, I’ll choose the local copy every time. Supporting only one platform won’t cut it this day and age however. Words on the webs is that an iPad version is in the works. That can only help.
Whatever does and doesn’t end up making it to market, one thing’s for sure; Blockbuster needs to get the lead out and quick. They’re closing stores at breakneck pace and holding depressingly boring press conference after conference rehashing the same empty promises we’ve heard quarter after quarter. Does Blockbuster have what it takes to become relevant again? Or do you not even care anymroe?
Electronista
- February 25, 2010 3:44 pm
Of all the industries that have been hit hard by the digital revolution, the music/video industries are some of the hardest hit. With both formats relying heavily on physical media for income, now that many are pushing away from such formats, the companies involved are feeling the pinch. On the video front, Blockbuster is taking a beating. Just look at their recent 4th quarter results in which they lost over $400 million — $400 million!. Even more telling however is that this staggering loss comes at a time when Blockbuster has in years past done very well. Simply put, it’s a failure to adapt.
Adapt to the changing times, to the move to smaller and more efficient media, or just to digital altogether. Recent trials of SD movie rentals may have seemed pretty decent on paper, but in truth it’s a terrible idea. Who is going to drive into town to pick up a digital file when it’s exponentially easier and more convenient to just download it? That fact alone coupled with Blockbuster not really having any viable digital rental/purchase options are literally killing the company.
Blockbuster CEO Jim Keyes knows this, stating that though his “company’s future is bright, the next 12 to 18 months will remain challenging.” Looking at it from the outside, it’s going to be very challenging. Does anyone feel or think Blockbuster can right their sinking ship or is it too far gone to save?
Cnet
- February 10, 2010 8:33 am
As if we didn’t see this one coming…
Blockbuster is filing for bankruptcy in Portugal. Why does that matter to us here? It doesn’t really. But it goes to show how a company stuck on old business models and resistant to embracing new technologies kills itself. If Blockbuster had moved to some form of Netflix solution or even to a more digital business model, perhaps their pockets (and stores) would be a tad more full, hmm?
Once riding high on a 100 store army in Portugal, Blockbuster is now a mere 1/4 of what it used to be — a paltry 27 stores left. Out of those 27 stores, 27 of them are finding it hard to keep the lights on at night.
Can’t say I’m disappointed though. I haven’t rented a movie in ages. And why would I? I have at least half a dozen gadgets that allow me to rent, buy, and stream whatever movies I want from my couch. See ya later Blockbuster. As your image and name slip into the depths of irrelevance, I’ll try my best to look back to a happier time when you were the center of my multimedia life.
Think they’ll pull out of bankruptcy and re-emerge leaner and meaner? Or do you wish they’d just die already?
Engadget
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- November 10, 2009 1:08 pm
Driving all the way down the street to your local Blockbuster to pick up some old, decrepit physical media is a pain. Not to mention, cassette tapes are all but antique and DVD’s are losing their luster in this digital age. Blockbuster is one of those businesses who should be scared. Without any physical media to rent, how do they stay in business? SD cards, that’s how.
Blockbuster is currently undergoing a pilot program in which users can bring in their own SD card and load it up with movie rentals via various “rental kiosks” that are made by NCR corporation in partnership with MOD Systems. Simple insert your card, select your movies you’d like to rent, pay your dues and off you go.
If you’re looking to play the system and simply take home your rentals for quick and easy copies be forewarned — expect an extremely tight layer of DRM wrapped around them. The most notable of this new DRM is a time limit which will render the files unplayable after the expiration date has passed. Kind of cool I guess. Though if Blue-ray DRM can be cracked as fast as we’ve seen, some SD card DRM can’t be that hard can it?
Of course, other obvious questions such as “what do I play it in?” arise. A computer is a given. Game systems such as the PS3 are safe too. Though not many TV’s support SD cards yet, but it’s coming. But let’s not get to excited yet because if Blockbuster decides to use a specific form of DRM that requires certain hardware or software to play it, thereby limiting the devices it plays on, well, then this new venture is dead before it began. All in all, if you don’t have an SD card reading device, it’s easy to find some attachment or 3rd party add-on allowing such functionality. If you have a hard time finding an SD card reader in your house, you’re probably not the prime audience Blockbuster is gunning for to begin with. I don’t know how many boxes of memory cards I have. It’s like a graveyard I swear.
Personally, I think a microSD based system would fare better. Sure you have to worry about end users losing the cards more often, but Blockbuster isn’t footing the bill for the cards so it’s not their loss. With mobile phones and smartphones really taking off, being able to rent a movie on microSD and then watch it on your phone or other mobile device would be a pretty cool concept. Blockbuster, are you listening?
Do you think Blockbuster can starve off any more cash bleeds with this new SD rental program or do they just need to get over this whole physical thing already and make more aggressive strides online?
Erictric
Digital is in, physical is out. You would think that a company who’s bread and butter profits are made on physical rentals would be as gracious as possible. The company in question, Blockbuster, is here to defy the odds. Remember the good ‘ol days where you could rent a game or movie and keep it for as long as you wanted without fear of late fees? Well, if you’re a movie buff you’re safe, however, if you happen to be a gamer, Blockbuster is bringing down the hammer on your over excessive gaming sessions with…..wait for it….Late Fees! That’s right, the company that pioneered the abolishment of late fees is bringing them back as the new hotness. Not exactly the smartest move, Ryan, the tipster who wrote in to the Consumerist thinks the same. After being taunted with late fees again, this gamer is now looking at Gamefly to get his future gaming fix. And who could blame him. Could this be the start of a bad trend for Blockbuster?
“NOTICE: Starting October 6, 2009 in select stores, including this store, the rental terms have changes as follows:
MOVIE RENTALS: No additional rental charge will be applied if a member chooses to keep a movie up to an additional ten (10) days beyond the initial pre-paid movie rental period.
GAME RENTALS: Game rentals have a 5-day rental period (the “Initial Game Rental Period”), An additional daily rate (each, an “Additional Daily Rate”) plus tax will be charged for each day the member chooses to keep the rental product beyond the Initial Game Rental Period. [I was told the charge was $0.99/day for the first 10 days]
All Product kept more than 10 days beyond the initial pre-paid rental period is converted to an automatic sale. Sale may be reversed by returning the product to this store within 10 days of the sale and paying a $1.25 restocking fee. Member remains responsible for all Additional Daily Rates incurred prior to the auto-sale (if applicable).
These terms supersede any contradictory term on the back of this receipt. See store for details.”
Nice way to scam a few more dollars out of your customers guys. We’ll see ya in bankruptcy court in the spring when this grand idea bombs…
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