Blockbuster plans to part with 960 retail stores by end of 2010
Seriously, Blockbuster can't seem to get a break. In a recent SEC filing, the company identified 18 percent of its retail outlets it deemed unprofitable and announced plans to close up to 960 stores by the end of 2010. That's divided into up to 685 by the end of this year and the remaining 275 the year after, but the filing continues to say that up to 1,560 locations, or 22 percent of its total retail coverage, could end up falling the wayside. Another slide indicates how the company sees itself going forward, with an expansion of kiosks and its Total Access subscriber base, and putting OnDemand in "nearly every connected device." Of course, if this brings Blockbuster back to profitability as it expects to be, then more power to it, but it's clear that the one-time king is fighting wars on a number of sides and has a long way to go if it intends to stay afloat, much less reclaim its crown.
[Via CNET]
[Via CNET]
























Reader Comments (Page 1 of 1)
Bryan @ Sep 15th 2009 10:04PM
Interesting, they apparently don't consider Netflix a competitor for its On Demand offering.
IseWise @ Sep 15th 2009 11:15PM
That is exactly why they are closing 960 stores. They just don't get it.
BarkingGhost @ Sep 16th 2009 10:41AM
Reminds me of AOL. They projected a public image of incompetence and blind refusal to see the obvious.
kballs @ Sep 16th 2009 11:31AM
It's because Blockbuster ondemand is a pay per view download service like Amazon, iTunes, or cable set top boxes... Netflix is unlimited streaming included in the price of their physical disc service. IMO, that means Netflix is not a competitor in that segment (I have Netflix and would never consider regularly using a pay per view service like Amazon, iTunes, BB, Xbox Live downloads, Vudu, etc. as it would cost way too much if used for more than a very occasional rental).
Wes @ Sep 17th 2009 11:51AM
@kballs
You work at blockbuster? As an excutive? All the fine dancing and word-manging about terminology is great and all but Netflix still is a competition to Blockbuster's On-demand service. As long as I can stream a new movie instantly to any pc in my household, to my xbox 360 and other devices like home theatre pcs, quickly and easily, it has the potential to steal customers from Blockbuster's On-Demand service. Especially if the pricing is reasonably close.
A service or store that can steal your customers is competition. Pricing aside, netflix has already stolen many Blockbuster customers. I don't expect the trend to stop.
Brian @ Sep 17th 2009 6:51AM
Blockbuster actually does "get it". Mass-market consumers, in general, don't care enough about service to justify providing it, and service (and cost) is all a big brick-and-mortar storefront offers that a Redbox-like kiosk doesn't. No human interaction; mass-market consumers don't care. Pitiful selection; mass-market consumers don't care. They just want to pay as little as possible.
Cheap cheap cheap consumers = cheap cheap cheap services offered.
bimmerfreak0 @ Sep 16th 2009 8:35AM
well i dunno about cheap...but $10 for 5 days for a video game is absolutely redicoulous....they deserve to shut down stores for lack of business
Eric @ Sep 16th 2009 10:48AM
They're still in business?
gt @ Sep 16th 2009 11:45AM
hmm, be great at one thing, or mediocre at a bunch of things. cant decide which segment to get involved in? bye bye
EM1 @ Sep 16th 2009 12:11PM
This is HD news? Last time I went to Blockbuster (1.5 yrs ago), they didn't rent blu-ray.
neiltoe @ Sep 16th 2009 1:00PM
Is this really a loss?
Jeff Hesser @ Sep 16th 2009 2:03PM
what a slow day.... nothing new since 8pm last night.....
yankeesj3 @ Sep 16th 2009 3:39PM
Big deal. I stopped being a Blockbuster member YEARS ago when they had the whole late fee fiasco. They tried charging me late fees for videos I returned on time. That was the straw that broke the camel's back. Haven't rented a movie since. I just wait until the movies come to the HBOs or Starz channels on my cable since I subscribe to those.
Nicnac @ Sep 16th 2009 4:21PM
@kballs
and to add to that, besides changing their on-demand to being a free queue service for subscribers, they should pursue a deal with putting blockbuster online on the PS3 xmb.
But, they don't seem to 'get it'.
Tauron @ Sep 16th 2009 10:45PM
VENGEANCE IS MINE!
-Disgruntled Ex-employee