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TheCrow

So according to Keyes, BB is going to stock the shelves with New Releases and the Vending machines with older movies. This is the exact OPPOSITE of what they should be doing. BB still cannot do anything right and I will be glad when they finally go down for the count.

tsrblke

It almost sounds like he's saying that customers should just suck it up and accept $4.50 movie rentals. I'm concerned as to where his economic degree came from. This is simply free market economics driving down the price. If you can't price properly to stay in business, you have no business being open. Obviously prices were far to high to generate demand at $4.50. (Furthermore, the $4.50 block buster price was for 3 days, where as the "Kiosk" price is for 1, so he's not even making similar comparisions. Nevermind OnDemand viewing, that's just a rip off.)

Perkins Cobb

The reason people are only willing to spend $1 for a rental now is because of Netflix; the efficiency of their delivery system makes this a reasonable expectation. Or else it's piracy getting a toehold, and all the people who now steal their movies on the internet grudgingly figure they'd pay up to $1 if someone will make downloading the same content easier and more guilt-free.

Even apart from the late fees, Blockbuster's rental prices were always overinflated; the independent stores they gradually drove out of business usually charged significantly less, and the few that survived often ended up raising prices to $5 or $6 per rental to compete ... which then helped drive people to Netflix. It's enormously satisfying to see this cycle finally catching up to Mr. "$4.50 Crybaby" Keyes.

dAVe

Keyes says "...concerned that from the cost of production through the expense of retail distribution, $1 per viewing is not a sustainable industry model." WTF Jim, looks like Coinstar is making sweet coin off this model. Are you saying you're not even willing to try? That sounds like a $1B in revenue, $38m net loss thinking to me...

JDoors

I can see how a studio delaying releases to everyone BUT brick-and-mortar stores would benefit Blockbuster, but are they big enough, and will they be around long enough, to force studios to go along with this?

So far, it appears so, but what happens if their rentals continue to decline? What happens if they have to abandon the brick-and-mortar business model? What happens when streaming, rental via snail-mail and kiosks are the ONLY models left?

Eh, guess I can't begrudge them one last desperate attempt to hold onto their buggy whips.

Tester

@TheCrow

"I will be glad when they finally go down for the count."

I will be glad when people like you stop acting like they are doing it to you personally.

vio

I second that Tester. Why are people on here so eager to see Blockbuster go down? With Movie Gallery/Hollywood Video barely a blip on the radar anymore, Blockbuster has become the last major provider of traditional renting(ie. brick & mortar stores you can drive down to, browse and get instant gratification).

It isn't like Blockbuster is doing harm to anyone by remaining in business. With so many other channels for renting movies these days, you never have to set store in a Blockbuster store to rent a movie if you don't want to. If Blockbuster goes down, all it's going to do is rob people who still like to rent the "old fashioned" way of their privilege to do so. I've seen MANY Netflix fanboys on this site complain repeatedly of how a typical Blockbuster's store selection. Well, have you seen the selection of titles available in a Redbox kiosk?! It's utterly and completely pathetic! It makes even the smallest Blockbuster store look like frickin' Smithsonian of movies.

Tester

@vio

"I've seen MANY Netflix fanboys on this site complain repeatedly of how a typical Blockbuster's store selection."

I've also seen posts by many of those same fanboys hoping that Blockbuster closes without any regard as to what would happen to Netflix pricing without Blockbuster being around.

They are truly self-centered individuals who think of no one else but themselves.

It seems to me that many of the Netflix fanatics have the attitude of "f**k everyone who doesn't agree with Netflix being the best. I hope Blockbuster go away so I can gloat."

vio

Well said. There definitely seems to be an elitist attitude among many Netflix users.

"You're either with us or you're against us!"

PS
Forgive me for the piss poor grammar in my previous post. I should have proof read it.

chris

I agree it wouldnt be a good thing if Blockbuster went under. God knows how much extra Netflix would charge for Blu-Ray with no by mail competition. Be careful what you wish for.

Tester

@vio:

"Forgive me for the piss poor grammar in my previous post. I should have proof read it"

Don't worry about it. I have made, and continue to make mistakes.

Tester

@chris:

"Be careful what you wish for."

You've no idea how many times I've said that here. It seems to me that a large number of the fanboys either are so dense they just don't understand it or are so wrapped-up in their Netflix love affair that they don't really care.

Perkins Cobb

As someone who spent more than a decade watching all the good video stores get killed off by inferior Blockbuster franchises ... and watching Blockbuster get away with twisting the studios' arms to edit films for content ... I'll be busting out the champagne the day Blockbuster finally bites it. And I don't care how much it drives up my Netflix costs. Schadenfreude, baby.

Tester

@Perkins Cobb:

"And I don't care how much it drives up my Netflix costs."

You're talking crap and you know it! You'll be the one crying the loudest and the longest if Netflix raises their rates.

One other thing, if you believe Netflix had no hand in the demise of local stores you're delusional.

vio

You'll be the one crying the loudest and the longest if Netflix raises their rates.

So true. I've been reading this site on and off for a good 5 years now and I've noticed a trend when it comes to Netflix price gouging. The second Netflix raises it's rates, the same people who vigorously defend Netflix like Reed Hastings is the messiah of video rentals suddenly start crying that it's an outrage and they're going back to Blockbuster. Pfff.

They're all spoiled and they know it; getting unlimited DVD rentals and now unlimited streaming for less than $20 a month! But like anything that's too good to be true, it usually is and this won't last forever.

Netflix has proven time and again that as soon as they no longer have any real competition, they automatically jack subscription rates up. They don't give ^%$! about their customers. They're just like any other business; getting in your wallet is their bottom line.

Christopher

You know I don't really care about Blockbuster they can go away and I would never miss them here. In fact 1 of our Blockbusters just shut down due to lack of business between the 2 stores in the area. If blockbuster did go away and Netflix did raise their rates so what' I'll stick with them and plus I don't see them saying anywhere where they would raise their rates.

Tester

@vio:

I really am glad that you've noticed the same things here, when it comes to Netflix fanboys, that I've noticed. It's very rare that I see people here who agree with me when it comes to what would happen if Blockbuster closes.

"Netflix has proven time and again that as soon as they no longer have any real competition, they automatically jack subscription rates up."

So true.

Tester

@Christopher:

"If blockbuster did go away and Netflix did raise their rates so what' I'll stick with them..."

THAT"S BULL AND YOU KNOW IT!

"...I don't see them saying anywhere where they would raise their rates.

Of course not. They won't say anything until they are ready to raise their rates. They always announce a rate increase shortly before they do it. I've never heard any company say they would raise their rates if a competitor closes.

colin

"and I've noticed a trend when it comes to Netflix price gouging."
Price gouging? I don't think you know what that term means. Reed seems a little caught up on himself, but I do love Netflix. And I would be willing to pay maybe 10% more for them to remain a healthy business, and continue improving their service. By the same token I don't want Blockbuster By Mail going away because a single supplier market is rarely good for consumers.

"Netflix has proven time and again that as soon as they no longer have any real competition, they automatically jack subscription rates up"
Really? How? BBM has been their only real competition, and BBM hasn't gone away yet.

Tester

@colin:

"And I would be willing to pay maybe 10% more for them to remain a healthy business, and continue improving their service."

They raised their rates for Blu-ray quite a bit more than 10%. How did you feel about that?

"By the same token I don't want Blockbuster By Mail going away because a single supplier market is rarely good for consumers."

I'm sorry to say it but you, my friend, along with vio, myself and maybe a few others are the only people who can see that.

vio

"I really am glad that you've noticed the same things here, when it comes to Netflix fanboys, that I've noticed. It's very rare that I see people here who agree with me when it comes to what would happen if Blockbuster closes."

Don't get me wrong. I'm not inherently anti-Netflix, nor do I think Reed Hastings is the anti-Christ. I just get burned out on all the absurd fanboyism and Blockbuster death rallies here. There's nothing wrong with the service Netflix provides, but why do these people think Blockbuster going belly up would be a such a great thing? Nothing good will come of it. It will simply give Netflix more of a monopoly and make it virtually impossible for people to rent movies from brick & mortar stores(yes, there are still plenty of people who like to do that).

vio

"Really? How? BBM has been their only real competition, and BBM hasn't gone away yet."

Well, in the DVD through mail business, yes. Remember, Netflix's rates were higher before Blockbuster got in the mail rental business in '04. When Blockbuster introduced "Total Access" and gave them some real competition for the first time, they suddenly lowered their rates and created "Instant Watching." What do you think is going to happen if Blockbuster goes belly up? Yep, I think it's pretty safe to assume the rates will go back up and Netflix will start charging a premium for streaming services. Who knows, with the studios waging war on Redbox, it's possible neither Blockbuster OR Redbox could survive past 2010 and that would be a very bad thing.

Tester

@vio:

"I'm not inherently anti-Netflix,...

Neither am I or I wouldn't be here. I've been using both services for quite a few years. I also have criticized each of them when I felt they deserved it.

I have said previously that I don't want to see either of them close because of the higher prices that would result.

The problem is there are some people here that are irrational when it comes to their dislike of Blockbuster and their love of Netflix. There is at least one person here that, I believe, would defend Netflix even if it turned out that they were selling drugs to minors. I don't see that same venom from the Blockbuster crowd.

Crow550

Yup competition is always a good thing.

Let's hope Blockbuster & Hollywood stay in the game. As well as Redbox and Movie Cube.

Without competition there's no other price and service to match.

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