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Comments on news posted 2011-04-06 10:48:27: Blockbuster struggled to adapt to competition from Redbox kiosks and Netflix DVD rentals -- as well as broadband video delivery. ..

page: 1 · 2 · 3 · next


Shazbott

@lmco.com

Dumb-dumb-dumb-dumb-dumb!

Buying a 1984 business in 2011: Brilliant!


ardri6

join:2009-06-19
Olney, MD

4 recommendations

Tom Cullen says

Tom Cullen says M.O.O.N. spells throw $320 million down a rat hole. Laws yes.


joebear29

join:2003-07-20
Alabaster, AL

1 recommendation

Blockbuster used to be ok

This may go against the “Blockbuster Fail” sentiment, but I really appreciated the company in the mid-90s. I remember when the local video store would literally have one copy of a new release, and it would take weeks to rent it. I really felt Blockbuster brought a really nice, efficient operation that improved my own personal experience from the hole-in-the-wall video store that preceded it in my town.

Having said that, that was 1993 and this is 2011, so I understand why Blockbuster is failing. It has likely been 3+ years since I rented a movie, especially since rentals are $5 or more when you can buy most movies for $10-$15 anyway.

The one recent Blockbuster service I really like was their mail DVD service (like Netflix) except you could trade in movies for free in-store rentals. We would have random things come in, not even watch them, and take them to the store for free rentals. That worked great until the local store shut down – close my Blockbuster.com account, and now I use Netflix mainly for the streaming.


openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to Shazbott

Re: Dumb-dumb-dumb-dumb-dumb!

Like buying any other group of assets, Dish gets the good stuff and can throw away the rest. It's not about "buying a 1984 business".



FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

said by openbox9:

Like buying any other group of assets, Dish gets the good stuff and can throw away the rest. It's not about "buying a 1984 business".

I wouldn't say Dish WON this auction. More like they paid for a brand name that is now pretty much worthless. If they wanted to be a Netflix broadband streaming competitor, they could have done that on their own name and spent the $320 million on content deals and on tons of advertising. I think they spent a lot of money on something worth 1/10th of what they paid for it
--
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openbox9
Premium
join:2004-01-26
Germany
kudos:2

Blockbuster already had several content deals, which I'm guessing is what Dish, and the other bidders, wanted. I seriously doubt that Dish, or any of the other bidders, care about the Blockbuster brand. Just my guess. I don't have a dog in the fight either way.


AndyDufresne
Premium
join:2010-10-30
Chanhassen, MN

320 million is not a lot a money for this purchase

They just bought all the streaming rights to movies BB had. BB has a relationship with TIVO that if you guys remember Dish and Tivo are not the best of friends and there is always the list of customers that BB had on file that will be getting mail drops I'm sure for special DIsh deals.
BB also has a relationship with Verizon that might be beneficial.

Not a bad purchase for 320 million.


tpkatl

join:2009-11-16
Dacula, GA

Is today April 1?

I had to check to see if this was an April Fool.

How will the Dish management ever be able to explain this to shareholders? Why would the Board have approved this?

Maybe they needed a tax loss to even out their massive profits



N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:2
reply to joebear29

Re: Blockbuster used to be ok

How does the song go?

"Every new beginning comes from some other beginning's end".

Just as you stated, the old mom & pop joints were put out of business by places like Blockbuster, etc. Nothing wrong with it. It's just the marketplace adapting to demand.

So, along comes Netflix, and Redbox, and iTunes. Once again, the marketplace adapts to demand, and what was yesterday's success it today's end of life cycle technology.

One day, and that day WILL come, Netflix will be gobbled up by some other method of delivery. People will be posting in forums someplace like this about how Netflix is so 2011.

Out of date, and antiquated! Why get movies over your DVD player when they can beam them directly to your brain, or some shit like that.

I can remember my father joining the local video shop down the street. It was something like a $100 buy in (in 1984) and the first move he could get was "Attack of the Killer Tomatoes".
--
Petty people are disproportionally corrupted by petty power


Timmn

join:2000-04-23
Tinley Park, IL
Reviews:
·AT&T U-Verse
·AT&T Yahoo
·DIRECTV

1 recommendation

said by N3OGH:

I can remember my father joining the local video shop down the street. It was something like a $100 buy in (in 1984) and the first move he could get was "Attack of the Killer Tomatoes".

Attack of the Killer Tomatoes was so bad it was great!


CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Meanwhile a local Ohio video rental store

has bene expanding.... literally - not kidding and they have been steadily expanding for the last 10 years.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


zed2608
Premium
join:2007-09-30
Cleveland, TN
kudos:1
reply to tpkatl

Re: Is today April 1?

said by tpkatl:

I had to check to see if this was an April Fool.

How will the Dish management ever be able to explain this to shareholders? Why would the Board have approved this?

Maybe they needed a tax loss to even out their massive profits

actuilty for such a small price it makes since heck look at it this way dish network owns 1700 stores lets say each store is worth 100k in property values thats 170 million

it might make good bussnuss since in some ways


FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
reply to AndyDufresne

Re: 320 million is not a lot a money for this purchase

said by AndyDufresne:

Not a bad purchase for 320 million.

Others disagree:
»finance.yahoo.com/news/Why-Dish-···x=0&.v=1
»www.fool.com/investing/high-grow···out.aspx
»www.marketwatch.com/story/dish-n···id=yhoof
--
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celeritypc
For Lucky Best Wash, Use Mr. Sparkle
Premium
join:2004-05-15
Caldwell, NJ
reply to zed2608

Re: Is today April 1?

said by zed2608:

actuilty for such a small price it makes since heck look at it this way dish network owns 3000 stores lets say each store is worth 100k in property values thats 300 million almost right there

Except for the fact that Blockbuster leases all of its locations.

zed2608
Premium
join:2007-09-30
Cleveland, TN
kudos:1

said by celeritypc:

said by zed2608:

actuilty for such a small price it makes since heck look at it this way dish network owns 3000 stores lets say each store is worth 100k in property values thats 300 million almost right there

Except for the fact that Blockbuster leases all of its locations.

yeah and found out fewer stores where open overall though i think that it will be worse case about break even


cowboyro
Premium
join:2000-10-11
Shelton, CT

The death of Blockbuster has been greatly exagerated

Blockbuster has licensing agreements and has the movies 28 days before Netflix/Redbox. It also has the local infrastructure of stores and the online streaming capability.
With a bit of smart management and marketing it can leave both Netflix and Redbox in the dust.


ke4pym
Premium
join:2004-07-24
Charlotte, NC

Brand Names

In my mind, Blockbuster goes on the list with places like Circuit City.


TheDarkAbyss

join:2005-04-28
Pittsburgh, PA

Heh...this is great

From last August..
»blog.comcast.com/2010/08/comcast···hip.html

The story writes itself..



stevennb
Ok, But, Thats The Last Straw.
Premium
join:2001-05-08
Wayne, NJ
reply to ardri6

Re: Tom Cullen says

Nice "The Stand" reference.



IowaMan
Premium
join:2008-08-21
Grinnell, IA
reply to ke4pym

Re: Brand Names

Radioshack as well



Jason Levine
Premium
join:2001-07-13
USA
reply to cowboyro

Re: The death of Blockbuster has been greatly exagerated

The only reason that Blockbuster gets the 28 day head start on Netflix is that Netflix signed agreements to delay rentals by 28 days. In exchange, Netflix would get cheaper DVD purchase prices (cheaper purchase prices = more available and lower costs) and more streaming options. Netflix realizes the latter is where the future lies while Blockbuster was struggling to overcome the Brick and Morter mentality.

Blockbuster's got a lot of work cut out for them if they want to pass Netflix.
--
-Jason Levine



MerinX
Crunching for Cures
Premium
join:2011-02-03
kudos:1

Waste for the win?

320 million well wasted!


ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

The only way this will work...

...is if Dish was in it for their streaming tech and contracts. If they can repurpose that into their PPV business, they might be onto something. Delivering PPV over satellite eats tons of bandwidth, so why not stream if you can? This way, they not only have access to their ViP series of receivers (if they're connected to Ethernet), but they also get access to every device that has the Blockbuster app loaded on it.

Still, $320 million is a lot to spend for that.


patcat88

join:2002-04-05
Jamaica, NY
kudos:1
reply to zed2608

Re: Is today April 1?

said by zed2608:

said by celeritypc:

said by zed2608:

actuilty for such a small price it makes since heck look at it this way dish network owns 3000 stores lets say each store is worth 100k in property values thats 300 million almost right there

Except for the fact that Blockbuster leases all of its locations.

yeah and found out fewer stores where open overall though i think that it will be worse case about break even

Blockbuster isn't remotely dead. How many areas DONT have cable tv or DSL in the USA? Blockbuster will be happy and fine in these areas. Dish Network knows some (what %? IDK), of its customers have sat tv out of necessity.


aaronwt
Premium
join:2004-11-07
Woodbridge, VA

Crap

I was hoping someone else would have won so all the retail outlets would have been liquidated.


firedrakes

join:2009-01-29
Arcadia, FL
reply to Shazbott

Re: Dumb-dumb-dumb-dumb-dumb!

nice. a company that knows how to run a media based content company



jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1

Apps to the Rescue?

Blockbuster has an app for Android and iPhone, which might be something of interest, depending on what Dish Network might have planned.



jester121
Premium
join:2003-08-09
Lake Zurich, IL
reply to joebear29

Re: Blockbuster used to be ok

Back in the 1880s, the Acme buggy whip company was awesome.... good times.



burner50
Proud Union THUG
Premium
join:2002-06-05
Fort Worth, TX
kudos:1
reply to patcat88

Re: Is today April 1?

said by patcat88:

Blockbuster isn't remotely dead. How many areas DONT have cable tv or DSL in the USA? Blockbuster will be happy and fine in these areas. Dish Network knows some (what %? IDK), of its customers have sat tv out of necessity.

I live in one of those areas... Only one town in the whole county has cable TV... Blockbuster just closed their store here a couple months ago.
--
I'm tired of killing stupid people just trying to do my job and go home!


RIP

@jdsu.com
reply to jmn1207

Re: Apps to the Rescue?

Their app lets you search the titles they have available and find the nearest retail store. Plus it lets you add DVDs to your Blockbuster by Mail queue.

Oh wait.... they are closing down the retail stores and selling off their inventory.

Since their stores are closing the one attraction of getting their DVDs in the mail was that you could return to the store and get a free rental has vanished as well.

Nice tax write-off for Dish a few years down the road!
Blockbuster RIP.... you will not be missed by this guy!