BlockBUSTED Video?

[marmar]

from 247WallStreet:



Blockbuster, Staggered, Loses It Feet
Posted: May 13, 2010 at 4:32 pm


Blockbuster, Inc (NYSE: BBI), nearly ruined by the high cost of its store network and withering from competition from NetFlix (NYSE: NFLX) and the kiosk operator Red Box, posted another quarter of dismal results. The rental chain’s net loss for the first quarter of 2010 was $65.4 million, or $0.33 per share, compared to net income of $27.7 million, or $0.12 per diluted share, in the first quarter of 2009. Revenues for the period was $939.4 million, compared to $1.09 billion for the period a year ago.

Worldwide same-store sales for the first quarter of 2010 declined 7.1%.

The stock fell over 17% after hours.

Blockbuster’s initiatives to save itself are almost certainly too little, to late. In a partnership with NCR is has opened 4,000 rental kiosks. Redbox has over 25,000. Blockbuster also has an untried partnership to download content to T-Mobile’s HTC HD2 smart-phones. Premium films and TV have been available on handsets for several years, but the business has been slow to gain ground.

Blockbuster is still burdened by its operation of 4,914 stores. Its major competition is from relatively lower cost DVD-by-film, digital download, and kiosk operations.

What was true last year is still true at the end of its most recently reported quarter. Blockbuster has no future.


-- Douglas A. McIntyre


http://247wallst.com/2010/05/13/blockbuster-staggered-loses-it-feet/

[slampoet]

1. I went to BlockBuster in 1994 to rent the Star Wars movies. They only stocked Empire.

They didn't even HAVE a copy of Star Wars or Jedi. It wasn't rented. The didn't OWN a copy of either.

[BoWanZi]

2. I remember when it was such a hot new thing to have a Blockbuster

Now its just a sad sad store to visit. Too expensive and no selection.

I feel bad for the employees even if BB is able to turn around in other ways (kiosks) because the employees won't be needed then.

[arcadian]

3. No shit.

I went to one and they had one employee for the entire shift. One person was manning the store and it was quite busy. I remember when they first opened there would be 5 or 6 employees mulling about.

[Liberal_in_LA]

5. I recall when BB was packed Friday and Sat. last time I went, it was empty

BB RIP

[HiFructosePronSyrup]

4. Netflix is just vastly superior in every way.

I'm a fairly late comer to Netflix. I heard people claim Netflix was better, and figured it was just an aesthetic preference kind of thing.

Nope.

Video stores are completely obsolete. I'm kind of surprised how fast that happened.

[Codeine]

7. The catalog depth at Netflix is stunning.

Shedloads of foreign classics that I never expected, and a gazillion BBC television programs. With a very few exceptions I'd have never been able to access that kind of product at Blockbuster/Hollywood Video, and since so much of it streams to my television it's instant gratification.

I'm actually a bit dumbfounded when I meet people who like film and can afford a membership but don't have one. They have no idea what they're missing.

[muffin1]

6. It's happening all over.

I've worked for a video store - in many capacities - for the last 20 years. Sunday is our last day.:cry:

There is really no way to compete with Netflix and Redbox.

[dana_b]

8. I'm sorry

that sucks! I hope you can find another job soon.

The Redbox business is a huge job stealer but how can anyone compete with $1.00 DVDs and no labor to pay for? You can't!

[muffin1]

9. Thank you.

I have a slew of pet-sitting jobs lined up for the next couple of months. But once those dry up, I'll be hitting the pavement.:hi:

[fishwax]

10. One of the stores here just closed -- but we've got an independent store that's exponentially better

Their selection is vastly superior, they're cheaper and easier to rent from, their employees are generally very knowledgeable about movies, and they support the community in a bunch of different ways. Every community should be lucky enough to have a store like it :)

[AngryOldDem]

11. Blockbuster's been dying for years.

I'm surprised it's hung around this long.