Blockbuster to cut costs, buy fewer DVDs from studios
[Via TomsPayde]
[Via TomsPayde]
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Reader Comments (Page 1 of 1)
uberfy @ Mar 21st 2009 8:28PM
I hope that doesn't mean fewer Blu-rays. They typically only have one or 2 copies on the shelf as it is for most new titles.
cashmonee @ Mar 21st 2009 8:46PM
When you are as bad off as Blockbuster is, you need to recreate yourself. Clearly, people aren't going for your product, so improve it. Don't charge more for less. That is a recipe for bankruptcy.
that1guypictures @ Mar 21st 2009 10:24PM
I work for Blockbuster, so maybe I can more accurate information. They are working to shift focus away from ordering as many RETAIL copies (movies for sale) and they are looking to get more revenue sharing. This means copies are supplied in bulk at a discounted rate. This in turn means more copies of each film, but in turn Blockbuster must agree to physically destroy a certain number of copies instead of selling them previously viewed, so that the retail value of the title isn't driven too low immediately. Right now Blockbuster has really good ties with Warner and some of the independents. (That's why our store had over 400 copies of Get Smart on release date, and 600 of Dark Knight. A normal title DVD order would be around 100-150 for a major title.) It's Disney that has a pretty bad relationship with Blockbuster since they want more of the profits to come from sales than from rental. (About 30 copies of Wall-E and the Pirates Films to rent.) Blockbuster is trying to get away from selling NEW copies of movies and games, and focusing on selling used earlier and getting rid of titles that aren't selling as well or renting, though this may mean having less catalog titles on the shelves. Not that I don't see the possibility of Blockbuster going under. I personally wish Netflix would just buy them out and turn them into exchange stores to extend the value of their business. But that would actually make sense. Instead the 80,000 people who work for them (yes, 80,000!) will probably lose their jobs in the next few years unless they take their heads out of the sand and keep up with technology. Blu-ray may be their salvation in the future, but it still isn't going to save them if they can't make their retail credit payments!
YouFaceTheTick @ Mar 22nd 2009 1:43AM
Blockbuster is still open? Why? Haven't set foot in one over the past 9 years. Why would people drive all the way to a store when the movies will get delivered to you via mail or online?
1 @ Mar 22nd 2009 6:38AM
cos they actually want to get out of the house and not be lazy!
eric f. @ Mar 22nd 2009 9:37AM
Then you probably also don't know that they've entered into Gamestop's market, selling games and gaming consoles and buying back used games for great prices. They even do pre-orders for $5. Blockbuster is now my go-to for PS3/360 games over Best Buy or Gamestop, since it is closer to me and the exact same price.
Virtuous @ Mar 22nd 2009 1:52PM
The end is near. Reduced selection will just drive away customers.
blockguy @ Mar 23rd 2009 3:25PM
Reduced selection was not mentioned. As brought out by that1guypictures, they are buying less RETAIL copies of DVDs as retail sales plummet due to the economy and the increase of Blu-ray and digital delivery options.
This will allow them to make smarter rental buys and refocus on their core business, renting movies to customers.