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Blockbuster Still Seems Afraid of Broadband
And Will Likely Implode Because Of It

It has been interesting watching Blockbuster video adapt to the broadband age, with the company seemingly not trying very hard -- either out of fear of cannibalizing their brick and mortar revenue, or just a general fear of losing control. Early efforts to mirror Netflix's success at broadband video delivery have seemed relatively lackluster, and the company's CEO, when announcing such broadband initiatives, seems to almost expect them to fail.

When the company does try new delivery platforms, they sometimes forget broadband even exists, and still seem fascinated with DRM-locked physical media. When the company fails, Blockbuster executives argue that it's because of piracy, not because of their lack of vision. We're of course not the only ones to notice this; blogger Dan Rayburn talked to Blockbuster about their digital/broadband strategy, and the company continues to sound timid and terrified in an age of 50 Mbps connections:
quote:
When asked different questions about Blockbuster's digital strategy, CEO Jim Keyes responded by saying things like, "these times demand a conservative approach," and that the company "will proceed cautiously as to how aggressive the company should be." For a company that has almost no digital offering today, those are some pretty scary statements. The last thing Blockbuster can afford to do is stay at the same slow pace for a digital offering roll-out that they are at now.
Meanwhile, Netflix is running ahead full speed signing distribution deals and embedding their software and dirt-cheap Wi-Fi chipsets into everything that isn't nailed down. Guess which company is going to be better positioned for the future?
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SSX4life
Hello World
Premium Member
join:2004-02-13

2 edits

SSX4life

Premium Member

Let them burn... burn... burn...

A blockbuster is closing in my area this week... and starting next week they are turning into a "retail" store where everything is for sale.

I for one hope they burn in a fiery grave. Over-priced DVD's / strange rental terms and conditions / lack of selection / and the inability to conform to change, and accept the DVD rental market is not the 1990's anymore will lead to their perpetual demise.

I for one plan on bringing some marshmallows to roast once things start to go down in flames.


Camelot One
MVM
join:2001-11-21
Bloomington, IN

Camelot One

MVM

Let the piracy blame game begin.....

No one will mention the failing business model, bad management, or a complete lack of interest in giving customers what they want. When Blockbuster implodes, it will be blamed entirely on "piracy".

TheBionic
Funkier than a mohair disco ball.
Premium Member
join:2009-07-06
united state

TheBionic

Premium Member

Re: Let the piracy blame game begin.....

said by Camelot One:

No one will mention the failing business model, bad management, or a complete lack of interest in giving customers what they want. When Blockbuster implodes, it will be blamed entirely on "piracy".
You're probably right. Blockbuster, look over here: I don't pirate. I've never illegally downloaded a movie. Through my Netflix subscription, both streaming and through the mail, I watch several movies a week. I haven't been to a Blockbuster in years. Piracy has nothing to do with it.
88615298 (banned)
join:2004-07-28
West Tenness

1 recommendation

88615298 (banned) to Camelot One

Member

to Camelot One
said by Camelot One:

No one will mention the failing business model, bad management, or a complete lack of interest in giving customers what they want. When Blockbuster implodes, it will be blamed entirely on "piracy".
Considering I know MANY people in my small little town that get DVD rips of movies still in theaters, piracy is more of an issue than you think. These are people that used to go to the movies and used to buy DVDs. I suppose all you that don't think it's an issue need to wait until the majority of people are doing it before you take it seriously. Guess what, it's too late then.

TheBionic
Funkier than a mohair disco ball.
Premium Member
join:2009-07-06
united state

TheBionic

Premium Member

Re: Let the piracy blame game begin.....

said by 88615298:

said by Camelot One:

No one will mention the failing business model, bad management, or a complete lack of interest in giving customers what they want. When Blockbuster implodes, it will be blamed entirely on "piracy".
Considering I know MANY people in my small little town that get DVD rips of movies still in theaters, piracy is more of an issue than you think. These are people that used to go to the movies and used to buy DVDs. I suppose all you that don't think it's an issue need to wait until the majority of people are doing it before you take it seriously. Guess what, it's too late then.
It's an issue; it's just not the sole issue. I know people who pirate too. But the vast majority of the people I know don't. The point of the article is Blockbuster's outdated business model. Netflix offers the same product and are doing very well, despite piracy, while one Blockbuster after another closes. You do the math.

S_engineer
Premium Member
join:2007-05-16
Chicago, IL

S_engineer

Premium Member

Re: Let the piracy blame game begin.....

Netflix, Redbox, and VOD were part of the death sentence. They also decided to get rid of their older customers by depleting their library of all older more obscure movies in favor of Steven Seagal and Wesley Snipe straight to DVD type flicks. Not to mention they'd keep a movie on the new release wall for a year before it moved to a lower price section. Good riddance
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to TheBionic

Member

to TheBionic
said by TheBionic:

said by 88615298:

said by Camelot One:

No one will mention the failing business model, bad management, or a complete lack of interest in giving customers what they want. When Blockbuster implodes, it will be blamed entirely on "piracy".
Considering I know MANY people in my small little town that get DVD rips of movies still in theaters, piracy is more of an issue than you think. These are people that used to go to the movies and used to buy DVDs. I suppose all you that don't think it's an issue need to wait until the majority of people are doing it before you take it seriously. Guess what, it's too late then.
It's an issue; it's just not the sole issue. I know people who pirate too. But the vast majority of the people I know don't yet but give it a few more years.
fix it for you.
The point of the article is Blockbuster's outdated business model. Netflix offers the same product and are doing very well, despite piracy, while one Blockbuster after another closes. You do the math.
I'm not disputing that Blockbuster is run by morons. As I said they need to be in those areas that don't have broadband. Much less pirating and no Netflix streaming to lure in customers from that area. Also lack of Redboxes.

TheBionic
Funkier than a mohair disco ball.
Premium Member
join:2009-07-06
united state

TheBionic

Premium Member

Re: Let the piracy blame game begin.....

said by 88615298:

fix it for you.


Unprovable and pessimistic. Most people I know realize that pirating is stealing and act accordingly. If the majority were going to pirate they would be doing so now. And like I said, piracy is a factor in brick and mortar stores going out of business. It's just not the only or even the main reason when someone can get a month's worth of movies for the cost of two movies at Blockbuster.
said by 88615298:

I'm not disputing that Blockbuster is run by morons. As I said they need to be in those areas that don't have broadband. Much less pirating and no Netflix streaming to lure in customers from that area. Also lack of Redboxes.
The reason those places don't have broadband or redboxes is the same reason they don't have Blockbusters: low population density. I can understand why a major chain might hesitate to open a branch where, despite the lack of broadband, the low population might not generate enough rentals in a month to pay the electric bill.

Camelot One
MVM
join:2001-11-21
Bloomington, IN

Camelot One to 88615298

MVM

to 88615298
said by 88615298:

fix it for you.

I'm not disputing that Blockbuster is run by morons. As I said they need to be in those areas that don't have broadband. Much less pirating and no Netflix streaming to lure in customers from that area. Also lack of Redboxes.
So, like most of your anti-P2P arguments, it basically boils down to....they need to have no competition, with customers who have no other alternatives.

Piracy didn't kill Blockbuster, I'd even go so far as to say it had next to nothing to do with it. Customers having a choice did.

Your friends who no longer go to movies probably don't go because the ticket prices are insane, home theaters have improved 100 fold, and most of the movies are just redone crap anyway. How many of those same friends have a netflix subscription? How many more of them would sign up if Netflix, even at 3-4 times their current price, had "In-theater" movies?

Bill Neilson
Premium Member
join:2009-07-08
Alexandria, VA

1 edit

1 recommendation

Bill Neilson to 88615298

Premium Member

to 88615298
said by 88615298:

Considering I know MANY people in my small little town that get DVD rips of movies still in theaters, piracy is more of an issue than you think.
So, because "many people" in a "small little town" do it, it is an issue?

Well, that is one qualified, in-depth study!
Desdinova
Premium Member
join:2003-01-26
Gaithersburg, MD

Desdinova to 88615298

Premium Member

to 88615298
"Considering I know MANY people in my small little town that get DVD rips of movies still in theaters, piracy is more of an issue than you think."

Then you're guilty of piracy and just admitted it. If you know for a fact that these folks are breaking the law and have done nothing to stop it, then you're guilty of aiding acts of infringement and are an accessory after the fact. I suggest you immediately turn both yourself and the others in to the Blockbuster Police and maybe they'll go easy on you. I doubt it, though...they're almost as bad as the Phone Cops.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK to 88615298

Premium Member

to 88615298
Piracy is a non issue. Piracy would effect them equally. One thriving while the other dies means the one dying is screwing up.

C Q Farley
@covad.net

C Q Farley to Camelot One

Anon

to Camelot One
Too bad about Blockbuster's business model being stuck in the 20th Century, but I wouldn't blame piracy. I'd imagine renting a video for a few dollars and ripping it would be attractive to pirates, in that the ripped copy would be virus and malware-free and wouldn't consume a conspicuous amount of bandwidth on P2P, usenet, DC or whatever.

Oh, well. Maybe their public library has a good video collection and they're ripping for free.

Bill Neilson
Premium Member
join:2009-07-08
Alexandria, VA

Bill Neilson

Premium Member

Used to love going to Blockbuster but their

time has passed and is going to get smaller in the future with many others unless they make massive changes

kapil
The Kapil
join:2000-04-26
Chicago, IL

kapil

Member

Dying Companies

The problem with dying companies, despite what the Supreme Court may have to say on the matter, is that they are very unlike dying human beings.

A shitty human being, no matter how awful a person, dies eventually and stops being offensive. A dying company, on the other hand, has shitty employees that ran it into the ground before its demise...and you know what they say about rats and sinking ships.

So, unlike a person who goes away for good, the short-sighted oafs from dying companies find work at other, perfectly good, companies and get to work destroying them.

So, if we're going to burn down teh Blockbuster, and it does deserve it, I say we burn the rats with it!

cableties
Premium Member
join:2005-01-27

cableties

Premium Member

Re: Dying Companies

Along with Blockbuster, I wish Gamestop would die too. Gamefly (like netflix) makes it much easier (and cheaper) for games.

Only one thing bothers me, who is in charge of the content. Although Netflix is ideal, I've already seen delays because Hollywood is throttling the content to them (with preference to sell retail media first and then allow rental after 28-30 days). "he who controls the spice..."

...We are becoming a virtual retail world. DLC, instant movies, programming as the "new" manufacturing model, ...
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

Re: Dying Companies

said by cableties:

Along with Blockbuster, I wish Gamestop would die too. Gamefly (like netflix) makes it much easier (and cheaper) for games.

Only one thing bothers me, who is in charge of the content. Although Netflix is ideal, I've already seen delays because Hollywood is throttling the content to them (with preference to sell retail media first and then allow rental after 28-30 days). "he who controls the spice..."

...We are becoming a virtual retail world. DLC, instant movies, programming as the "new" manufacturing model, ...
I honestly don't think the used game aftermarket is a good thing at all. It prevents content providers from making money on game purchases, and because the tail-end of the curve is leeched off of by these brick and mortar shops, they essentially can never lower prices since they'll always be undercut 50% by the "competition".

Z80A
Premium Member
join:2009-11-23

1 recommendation

Z80A to cableties

Premium Member

to cableties
While I agree with Blockbuster, I disagree about Gamestop. My local GS stores run decent sales, always have what I want in stock and a good selection of used titles.

That said, EBGames was better and that got trashed after the merger. For me the Gamefly model doesn't work because I play games over and over and over a period of time while watching a movie only once. I see little appeal in Gamefly.

PeteC2
Got Mouse?
MVM
join:2002-01-20
Bristol, CT

PeteC2

MVM

Wow...so much anger!

Without a doubt, those who fail to see the changes in the marketplace that technology brings generally go away...nothing new there! I remember when I gradually had to take my business away from the local mom and pop video store, because an "upstart" called Blockbuster simply had a much better, fresher selection of video media (I felt bad, but Blockbuster simply had a better business model in their day)...now they become the dinosaurs...and so it goes. I used to frequent BB back in the VCR days, and gradually over time, they simply became irrelavant to my media needs.

I can tell you that many of their lower-mid tier managers have been leaving for quite some time now and moving on to other franchises such as Radio Shack, Best Buy, etc.

What I find curious is the fairly harsh rhetoric because of their apparently imminent demise. Some businesses adapt and evolve, others simply fade away.

I once was a satisfied customer of AOL, back when they were a dedicated on-line service (such as CompuServe) prior to being an Internet provider. Left them long, long ago when they became irrelavant, but they had a good service in their day.

I suspect that in the near future we'll be saying "Blockbuster, R.I.P."

Madness
Like a flea circus at a dog show
join:2000-01-05
Lynn, MA

Madness

Member

Funny...

"Blockbuster Express" kiosks have popped up at a number of locations of a local convenience store chain. Guessing they're trying to duke it out w/ the Redbox, where I go for all my rental needs.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Lucky for Blockbuster

that 20% of the US can't even get broadband even if they wanted it. Unfortunately Blockbuster seems to not want to put stores in those areas.

DrModem
Trust Your Doctor
Premium Member
join:2006-10-19
USA

DrModem

Premium Member

Re: Lucky for Blockbuster

said by 88615298:

that 20% of the US can't even get broadband even if they wanted it. Unfortunately Blockbuster seems to not want to put stores in those areas.
Not lucky for Blockbuster. For those 20% there is Netflix or the RedBox kiosks, which are far more plentiful that blockbuster stores and way cheaper.

I'm one of those 20%... and I haven't used blockbuster or any other rental store in ages. Netflix ftw.

spewak
R.I.P Dadkins
Premium Member
join:2001-08-07
Elk Grove, CA
·Consolidated Com..

spewak

Premium Member

Big Bonus anyone?

I think that CEO Jim Keyes is in line to receive a huge bonus. I mean, his company is going down in flames, he has no idea what the interwebs can do for his company.
He is obviously too valuable to lose, therefore his bonus will be huge.

tomkb
Premium Member
join:2000-11-15
Tampa, FL

tomkb

Premium Member

Re: Big Bonus anyone?

said by spewak:

I think that CEO Jim Keyes is in line to receive a huge bonus. I mean, his company is going down in flames, he has no idea what the interwebs can do for his company.
He is obviously too valuable to lose, therefore his bonus will be huge.
The worse you do the bigger your bonus. And for all we know, maybe he is receiving a bonus from Redbox or Netflix to let it happen. Best of all worlds.

kingdome74
Let's Go Orange
Premium Member
join:2002-03-27
Syracuse, NY

kingdome74

Premium Member

Redbox

Blockbuster is also getting hammered in the brick and mortar world. The advent of Redbox (developed by McDonalds and Coinstar now owned solely by Coinstar) single-copy, in-store DVD sales has bitten a huge part of Blockbusters ass. Inside of Walmarts, most major grocery chains, and just about any corner convenience store Redbox is boasting some huge gains against Blockbuster and Netflix. With their new deal with Warner Bros in place and Blockbuster reinstating late fees (again) Rebox is positioned to dominate Blockbuster and most other b+m stores.

My prediction is within two years we'll be looking upon the empty Blockbuster building and wonder if there will be another business that can use that building.

Z80A
Premium Member
join:2009-11-23

Z80A

Premium Member

Re: Redbox

A lot of grocery stores also have mini rental areas of their own and I always see a lot of people in the video rental section of my local Albertson's grocery store.

IT Guy
Ow, My Balls
Premium Member
join:2004-07-29
Las Cruces, NM

IT Guy

Premium Member

Re: Redbox

And don't forget you can get movie rentals at most libraries for free... Even better.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK to kingdome74

Premium Member

to kingdome74
Redbox + Netflix is the Combo bonus NO rental store can match. It's the one-two punch, the headshot and the kidney shot.

If one or the other of these two buy the other, it's HISTORY for everyone else.

All brick and mortar DVD rental stores are walking the plank as it is.
brianiscool
join:2000-08-16
Tampa, FL

brianiscool

Member

well

They should be very afraid. Blockbuster is at the breaking point of becoming none existent .

maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA

maartena

Premium Member

Videostores are a dying breed

Both the Blockbuster and Hollywood Video in my area have closed.

Many of my friends have Netflix. Those that do not, use the Video-On-Demand system from the cable company a lot. And seriously, who wants to hassle with actually going to the store, and having to bring the disk back eventually, when you can just pick up the remote and rent brand new movies for the same price?

Hollywood Video never got into the online game (or if they did, they didn't market it very well because I don't know it), so they are pretty much going bust.... not yet, but they will be.

Bottom line is this: If you continue with a physical disk rental system as your primary product, you will eventually be put out of business. I'm sure there is still plenty of small towns with 1.5 Mbps DSL the maximum where streaming isn't an option and a local blockbuster will still thrive for many years to come, but even in those little towns netflix can deliver by mail, and the local cable company will have on-demand selections or have them soon.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

1 edit

FFH5

Premium Member

Re: Videostores are a dying breed

said by maartena:

Both the Blockbuster and Hollywood Video in my area have closed.

Many of my friends have Netflix. Those that do not, use the Video-On-Demand system from the cable company a lot. And seriously, who wants to hassle with actually going to the store, and having to bring the disk back eventually, when you can just pick up the remote and rent brand new movies for the same price?

Hollywood Video never got into the online game (or if they did, they didn't market it very well because I don't know it), so they are pretty much going bust.... not yet, but they will be.

Bottom line is this: If you continue with a physical disk rental system as your primary product, you will eventually be put out of business. I'm sure there is still plenty of small towns with 1.5 Mbps DSL the maximum where streaming isn't an option and a local blockbuster will still thrive for many years to come, but even in those little towns netflix can deliver by mail, and the local cable company will have on-demand selections or have them soon.
The higher end of movie rentals have moved online. And the lower end for DVD rentals have shifted to kiosks in supermarkets where the rental is $1. Blockbuster has been squeezed from both ends. They will just go the way of the local grocery stores - killed off by bigger competitors and specialty stores. And most DVDs can be bought at Walmart a year after they are out at a cost less than Blockbuster rents them for.

sivran
Vive Vivaldi
Premium Member
join:2003-09-15
Irving, TX

sivran

Premium Member

Re: Videostores are a dying breed

Wait, bought at walmart for less than the rental price at Blockbuster?

I haven't been into a Blockbuster in a long time, and they've always been overpriced, but that MUST be some exaggeration.....right?

maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA

maartena

Premium Member

Re: Videostores are a dying breed

said by sivran:

Wait, bought at walmart for less than the rental price at Blockbuster?

I haven't been into a Blockbuster in a long time, and they've always been overpriced, but that MUST be some exaggeration.....right?
Even if that isn't the case.... I have seen brand new movies for sale at Walmart for about $15, and lesser known ones for $12, $10.

Last time I actually went and rented movies, I paid about $4 per movie if I recall correctly.

So even though it may be a slight overstatement, it's almost better to BUY the movie for about twice the rental amount, get a brand new disc, you get to keep it as long as you like, plus you can actually sell it again in the 2nd hand market if you really want to get rid of it. Plus you support the movie industry that way.

And sure piracy has a LOT to do with the Videostore's demise.... after all I can understand why you would want to see a movie on the big screen with all the THX sound effects and what not..... but downloaded DVD's are virtually the same thing, only free.

iTunes understands it.
Netflix understands it.

If you don't keep moving along with the market, you become a relic. Just like Novell Netware, which once ran on 90% of servers, and now hardly anyone knows about it.
deadzoned
Premium Member
join:2005-04-13
Cypress, TX

deadzoned

Premium Member

Weirdness

I thought that Blockbuster bringing back late fees was totally going to fix all of their problems and usher in a new era of fat-lootness.

I guess we really can't call it a comeback...

TMMerlin
The Devil made me do it
join:2003-06-19
Oxford, MI

TMMerlin

Member

It's like buying a pair of shoes ...

You can waist time and gas by going to the mall or log onto Zappos.com and get your new shoes in 24 hours.

Ok OK ... just one trip to the shoe store and make sure you know your shoe size .. LMAO LMAO

PeeEss .. I dumped movie package and HBO/Cinemax in favor of a $17/mo NetFlix deal and of course I download videos via my 6Meg DSL line. And, I don't mind waiting 30 days for a new release.

Unfortunately ... BlockBuster is like a New England shoe factory .. "extinct"..!

thender
Screen tycoon
Premium Member
join:2009-01-01
Brooklyn, NY

thender

Premium Member

They're obsolete and can't compete.

In 2005, I could download something in HD and have it be done in less time than it takes to go to blockbuster and pick up an SD copy.

They're just old.
CSU
join:2002-10-21
Lagrange, GA

CSU

Member

Failing

Blockbuster has obviously chosen to fold since they can't seem to move the speed of technology. Actually, they've closed every Blockbuster store in my area. I have to drive 50 miles to find the nearest one.
almaden
join:2004-03-03
Renton, WA

1 recommendation

almaden

Member

Funny this ad should come up

Click for full size

dvlsadvct
@sgn.sca.se

dvlsadvct

Anon

what happens when...

blockbuster does go away, as with other stores that rent physical media.

and then comcast, verizon, and the other ISP's reduce their caps to nothing? will netflix still have a a chance when peoples broadband bills go from 40 dollars a month to say... 65 or 70 dollars a month?

then cable companies start in with the 'if you use OUR PPV service, it won't count towards your caps' advertising. then what other choices are left? you can not watch movies without paying an arm and a leg, and you are stuck in an endless cycle of exuses to raise rates not 3 to 5 percent like things used to be, but 20 to 30 percent increases that these vampires suck out of customers these days.

while blockbuster needs to get with it, i certainly do not want to see their demise. unfortunately, they are going to be needed again one day.

aaronwt
Premium Member
join:2004-11-07
Woodbridge, VA
Asus RT-AX89

aaronwt

Premium Member

Re: what happens when...

said by dvlsadvct :

blockbuster does go away, as with other stores that rent physical media.

and then comcast, verizon, and the other ISP's reduce their caps to nothing? will netflix still have a a chance when peoples broadband bills go from 40 dollars a month to say... 65 or 70 dollars a month?

then cable companies start in with the 'if you use OUR PPV service, it won't count towards your caps' advertising. then what other choices are left? you can not watch movies without paying an arm and a leg, and you are stuck in an endless cycle of exuses to raise rates not 3 to 5 percent like things used to be, but 20 to 30 percent increases that these vampires suck out of customers these days.

while blockbuster needs to get with it, i certainly do not want to see their demise. unfortunately, they are going to be needed again one day.
PPV/VOD services from the cable providers already do not count toward the cap.
fishacura
join:2008-01-25
Phoenixville, PA

fishacura

Member

Brick and Mortar revenue???

Where does Blockbuster still have Brick and Mortar revenue??? That's the funniest line of this article. I had 4 in my area in the past and it's now down to ZERO. Are they still popular perhaps in the middle of the country or in very suburban areas???

ArgMeMatey
join:2001-08-09
Milwaukee, WI

ArgMeMatey

Member

Re: Brick and Mortar revenue???

I used to have a Hollywood and Blockbuster within walking distance. Now it's just Blockbuster. Although we get some pay per view movies through their online service, their mail subscription service is ridiculous compared to Netflix. They overestimate the convenience of returning movies locally and underestimate the all-you-can eat buffet.

I just hope Blockbuster lasts long enough for me to redeem the rest of the free game and movie coupons I have.

runnoft
Premium Member
join:2003-10-14
Nags Head, NC

3 edits

runnoft

Premium Member

Stock short

Shorting stocks is too speculative for me, but if I were looking for one to short, Blockbuster would be my pick. They are clearly circling the drain, wringing their hands.

WARNING: I thought the same thing about AOL when it was about at $60 sometime in the early 1990s. And eventually I was right. But in the meantime, the stock soared higher for awhile (I think doubling or tripling at one point), and I would have had to shovel a lot more money into the "investment" covering the short until it finally did fall apart to the single digits. You never know: some other idiot may decide there's something to Blockbuster (such as some undervalued asset) and come along and buy them out, in which case, if you're shorting, you can lo$e.

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207

Premium Member

Still the Only Option...

Blockbuster is still the only place near me that offers a monthly subscription for both games and Blu-ray movies. I can go pick out a game or movie in 5 minutes, and they have everything available, since it seems that nobody else is using the service.

It's very convenient for me, as I have a Blockbuster that is on the way between work and home, and it happens to be situated in a strip mall that I frequently visit for groceries and many other items. Gamefly doesn't work with my spontaneity. I can actually go rent Bioshock 2 for either the Xbox 360 or my PS3 right now, but with Gamefly, they'd be shipping me Gallop Racer because it's the 27th item on my list that happens to be available. I'll see it in a couple of days, unless it's Friday, than it won't be in my mailbox until Monday. I tried a 3-game plan with Gamefly in an effort to reduce the chances that I would be without any game for any period of time, and to make it easier to demo some games that I wasn't sure about, but it still sucked. It's just not for me.

Until streaming came along, Netflix was similar to Gamefly. Even with streaming movies, it's still not Blu-ray, and they are not the newest released movies that I can get at Blockbuster. Streaming Netflix has a purpose for me, but it doesn't replace what I get from Blockbuster, which is recently released movies on Blu-ray that I can go and get on a whim without having to plan ahead or wait for delivery.

I'm certain it will go away, and I'm going to miss Blockbuster, at least until Redbox finally releases a monthly subscription (still testing?) and a video game kiosk comes to my area.
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