Comments on: Blockbuster's real problem

Blockbuster appears to be pulling back (but likely not exiting) from its mail operation to concentrate on its brick and mortar stores.

[johnnywey]

You're forgetting other "B&M" alternatives

While I agree with your assessment of the value of B&M stops, you're
forgetting the alternative stops that have, at least here in Denver, opened up
all over the place.

Redbox and other "vending" solutions have rapidly replaced our family's use
of Blockbuster because they are cheaper, easier, and faster. There are at least
three different locations within two miles of our house, and I can even check
stock before leaving. While they only carry new releases, the movies we want
to watch "now" (instead of waiting for Netflix) are the new releases.

I think Blockbuster's problems stem from the combination of these new
vending solutions (which, btw, are always packed when we drive up to them)
and Netflix together. In reality, with Blockbuster charging $4+ to rent a new
release on top of the hassle of dealing with their often clueless employees
and having to drive farther and wait longer overall, there really is no
competition. Blockbuster will be around for a while longer, sure, but they are
on their last legs.

[ghaff]

Good point

To the degree that B&M's characteristics can be replicated at lower cost/better experience, that's definitely an interesting option given that B&M does have some unique things going for it. And it makes a lot of sense that "want to watch now" movies are likely to be new releases. I haven't seen any of those options around the Boston area though I can't say that I've been looking for them.

[TheZenArcher]

Recent BB Total Access changes were a mistake

I was a Netflix subscriber for years until two problems made them unusable: one, a ridiculously high incidence of (clearly uninspected) unplayably damaged discs; second, their open-secret "throttling" policy which completely undermines the concept of "unlimited rentals." This offensive policy drove me to BB Total Access, which, since I (admittedly) live close to a BB store, was a welcome relief: immediate exchanges available for damaged discs and unlimited in-store exchanges (translation: no "throttling"). Happy happy joy joy. Then they changed things, and completely missed the point of their own strategy: driving users to the stores in person. That's the one thing they have over Netflix et al and they need to capitalize on it, taking advantage of impulse rentals and ancillary purchases, a/k/a cash income. But the changes to Total Access have been bungled: by limiting the number of in-store exchanges for some price plans they are limiting the number of times people will go to the stores. D'oh! Must... shoot... foot... again...! My suggestion to them is this: return the unlimited-exchange policy to all plan levels with a new proviso: lower plans may not get free exchanges of New Releases, only older ones. The New Releases have got to be where BB makes almost all of its in-store rental $, while older ones sit on shelves; my plan leaves New Releases to the cash-paying impulse purchasers and still affords lower-tier plan subscribers an unlimited, and attractive, rental plan. So if anybody from BB is reading this, just do it, and I'll tell you where to send the check.

[Allan Ziskey]

yet other alternatives

I saw no mention of Pay Per View. Why?
PPV is a better alternative for a number of reasons:
- Ubiquitously packaged into most entertainment/communication services (cable, satellite, DSL, now wireless)
- Faster, easier access (no more trips to the store or waiting on the mail)
- Very competitive prices (new releases are cheaper than at my local brick and mortar)
- GREAT ability to record to DVR, DVD, or VCR (depending on in-house equipment)
- New Broadband/IPTV PPV offers an astounding variety of titles

only downside is that generally, most PPV offerings are slim.

While there are niche markets that Blockbuster might tap into I wonder if they can move their mass quickly and deftly enough to stay afloat...given all the competition against their current model I'd wager a "no".

[ghaff]

Rental alternatives

For various reasons, PPV hasn't really taken off in a big way so I wasn't really thinking of it as an option. But, in any case, it's essentially a flavor of rental "download." (From a use case if not necessarily from a technical perspective.) Maybe "bits" would have been a better term. I think of PPV mostly as an interim step but it does get around some of the issues associated with true download technologies today although it potentially has some downsides of its own. (e.g. you can't watch on other devices.)