Remove ads with our VIP Service
Add Your Comments
- Carmel, IN: Flix Brewhouse - Carmel Opens [5/1]
- Sun Prairie, WI: Marcus Palace Cinema Opens, Eastgate Cinema Closes [4/30]
- Santa Fe, NM: Violet Crown Cinema - Santa Fe Opens May 1, 2015 [4/30]
- Lake Charles, LA: Closed UA Lake Charles 10 Will Reopen in Fall 2015 as Cinemark Movie Bistro [4/29]
- Glenview, IL: ArcLight Cinemas - Glenview Opening on April 30, 2015 [4/27]
- Culver City, CA: ArcLight Cinemas - Culver City Opening on April 30, 2015 [4/27]
- Ashburn, VA: Starplex Cinemas - Loudoun Luxury 11 Now Open [4/24]
- Lake Charles, LA: UA Lake Charles 10 Closing August 26, 2015 [4/24]
- Dallas, TX: Cinepolis to Open Luxury Movie Theater in Victory Park [4/21]
- Lewisburg, WV: Lewisburg Cinema 8 Now Open [4/21]
Video rental chain Blockbuster announced last week that it will close up to 960 stores by the end of 2010. Their SEC filing paints a less than pretty picture, where 18% of their stores are unprofitable, and another 47% are considered "non-core" that perform poorly compared to the remaining "core" locations. With 4,356 stores presently, the closures represent more than 20% of their locations whose lights will go dark in the next 15 months.
On other fronts, Blockbuster is hoping to expand the number of its kiosks from under 500 currently to 10,000 by mid-2010, and it most likely wants to grow its subscriber base for the Blockbuster Total Access movie-rentals-by-mail program.
That's going to be a challenge, because they have major competitors on both fronts. Kiosk vendor Redbox has been making many headlines as they continue to grow in popularity and they currently have kiosks in 15,000 locations already. Video rental by mail pioneer Netflix is synonymous with the concept, and their red envelopes are being sent out to more than 10 million subscribers. This makes Blockbuster's 1.6 million subscribers look like a good start, but it definitely shows a need for growth on Blockbuster's part in that market.
Will Blockbuster survive, or will the familiar blue and yellow brand go the way of so many mom-and-pop stores that it helped shutter when it swept the nation so many years ago?
It would be odd not to see the stores any more, but I have to admit that I've only patronized Blockbuster a handful of times since I signed up for Netflix several years ago. Their high rental prices, short return schedules, and limited selections continue to be a glaring downside to their model, and their only upside, which is for impulse rentals, is quickly being eroded by the prevalence of Redbox kiosks.
Two weeks ago, I went into a Blockbuster store to rent a new release on the spur of the moment. While they had plenty of DVD's of the title in stock, they didn't have any on Blu-ray. No, they weren't all rented out, they never got any in the first place! Rather than disappoint my kids, I paid my rental fee and had the pleasure of paying an extra dollar for not being able to return it the next day.
The whole experience reminded me of why I rarely visit Blockbuster and the high cost and low convenience of their business model just doesn't fit in with the present day. I hope they can grow their Total Access business so that it's always a competitor for Netflix to keep them from becoming complacent. If they can get their Blue kiosks in more locations (and stuff them with Blu-ray discs) I'd be happy to see that as well.
If they can't, they're going to be seeing red everywhere they go, even in the board room.
Related Articles/News Coverage
Add Your Comments
No comments found. Be the first and let us know what you think!
Add Your Comments
|Commenting on Journal Articles is available only to our readers who have customized this site, which makes it easier for you to complete the form and for us to contact you with any questions or concerns about your comments.|
Please login or register a new account before continuing.
Log in to retrieve your saved settings.
Forget Your Passcode?Send My Passcode To Me
Not Registered? Create a New Account!
Our registered members enjoy more features, including:
- Save Your Location -- the site remembers your location, no having to re-enter it each time you visit
- Favorite Theaters List -- keep a handy list of the theaters you attend
- Favorite Movies List - movies you want to see, all in one place
- Write Movie Reviews -- share your opinions of the movies you see
- Block Ads with VIP Service -- view this site ad free (subscription req'd)
Basic accounts are free -- sign up today!
Concerned About Privacy?
Journal/Blog - The Marquee - Movie Links - News and Events - Now Showing - Reader Reviews
Customize - VIP Service
|The BigScreen Cinema Guide is a service of SVJ Designs LLC. All graphics, layout, and structure of this service (unless otherwise specified) are Copyright © 1995-2015, SVJ Designs. The BigScreen Cinema Guide is a trademark of SVJ Designs. All rights reserved.|
'ACADEMY AWARDS®' and 'OSCAR®' are the registered trademarks and service marks of the Academy of Motion Picture Arts and Sciences.