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Discussion Starter · #1 ·
Lot's of interesting data in this story, but this detail was new to me.

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Its (Blockbuster) number of by-mail subscribers has already retreated to 1.6 million, after peaking in late 2007 at about 3 million. Leader Netflix, by contrast, continues to ratchet upward, having just reported subscription growth of 31% for 2009, after gains of 26% in 2008 and 18% in 2007. This has Netflix's current by-mail subscription count of 12.3 million almost 8 times greater than Blockbuster's.

And Blockbuster should be well positioned to grow if they had the right offering.

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Few companies are embedded in the fabric of America as deeply as Blockbuster. There's its retail ubiquity, wherein 70% of the U.S. population lives within 10 minutes of a Blockbuster store. There are its customer counts of 1.5 million daily and 50 million annually, which even today account for 40% of domestic in-store video rentals. And there's its brand recognition, which generates 96% domestic consumer awareness in the home-media entertainment industry.
http://www.thedeal.com/newsweekly/in...f-its-reel.php



That means that since Blockbuster made the strategic decision to add Blu-ray to their core service, and Netflix made the strategic decision to add streaming to their core service their respective services have gone in opposite directions.


Blockbuster's subscribers have declined significantly (even with their in-store exchange options), while Netflix has been an absolute stellar performer fueled by their streaming option. Kudos to Netflix!!
 

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I love the title: At the end of its reel?


I agree it doesn't look good for Blockbuster.


Edit: that entire article is interesting in terms of Blockbuster's storied history.
 

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I wonder if it's because not everyone has wanted to invest in a Blu-ray player yet (they were pretty pricey for most people until recently)...but a lot more people have PCs/laptops or are willing to spring for the price of such a thing as a Roku box, or have a PS3 in their house already, so they can stream content more easily.


Now with newer HDTVs coming with Internet access and access to Netflix on their TVs, I imagine streaming will be more accessible to even more people.


Good for Netflix, not so much for Blockbuster, looks like.


DGK
 

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Quote:
Originally Posted by PSound /forum/post/18172602


..That means that since Blockbuster made the strategic decision to add Blu-ray to their core service, and Netflix made the strategic decision to add streaming to their core service their respective services have gone in opposite directions.

It does? Ok..........So that's it huh? Bluray = fail, streaming = win? No other factors involved? Case closed?


Seems like you are making some mighty big assumptions there. You appear to be arbitrarily linking timelines and events to paint a picture you want to see or project.


During the same period Netflix has been increasing they also added bluray support in that timeframe. Yet somehow when Blockbuster added bluray it spelled their demise?


So you are attributing Blockbusters downward spiral directly to their support of bluray? Yet Netflix supported bluray at the same time and they have increased? Your theory appears to hold no water, but is quite typical. There is no 1:1 correlation like you are suggesting. There are a myriad of factors, which you conveniently left out.


From this and every other thread you participate in, the essence I get from you is anything that is related to or supports bluray is somehow tainted or doomed, as if it were a cancer. But we all know that isn't true, and that your bias (see your sig!) accounts for the exaggeration and scale tipping.
 

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Quote:
Originally Posted by bt12483 /forum/post/18175169


It does? Ok..........So that's it huh? Bluray = fail, streaming = win? No other factors involved? Case closed?


Seems like you are making some mighty big assumptions there. You appear to be arbitrarily linking timelines and events to paint a picture you want to see or project.


During the same period Netflix has been increasing they also added bluray support in that timeframe. Yet somehow when Blockbuster added bluray it spelled their demise?


So you are attributing Blockbusters downward spiral directly to their support of bluray? Yet Netflix supported bluray at the same time and they have increased? Your theory appears to hold no water, but is quite typical. There is no 1:1 correlation like you are suggesting. There are a myriad of factors, which you conveniently left out.


From this and every other thread you participate in, the essence I get from you is anything that is related to or supports bluray is somehow tainted or doomed, as if it were a cancer. But we all know that isn't true, and that your bias (see your sig!) accounts for the exaggeration and scale tipping.

Wait for the SEC filling or mailing list reply in 5..4..3..
 

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Discussion Starter · #6 ·

Quote:
Originally Posted by bt12483 /forum/post/18175169


It does? Ok..........So that's it huh? Bluray = fail, streaming = win? No other factors involved? Case closed?


Seems like you are making some mighty big assumptions there. You appear to be arbitrarily linking timelines and events to paint a picture you want to see or project.


During the same period Netflix has been increasing they also added bluray support in that timeframe. Yet somehow when Blockbuster added bluray it spelled their demise?


So you are attributing Blockbusters downward spiral directly to their support of bluray? Yet Netflix supported bluray at the same time and they have increased? Your theory appears to hold no water, but is quite typical. There is no 1:1 correlation like you are suggesting. There are a myriad of factors, which you conveniently left out.


From this and every other thread you participate in, the essence I get from you is anything that is related to or supports bluray is somehow tainted or doomed, as if it were a cancer. But we all know that isn't true, and that your bias (see your sig!) accounts for the exaggeration and scale tipping.

Please explain the major differences in the services from Blockbuster (their by mail service) and Netflix. As far as I can tell, the major differences are that Blockbuster includes Blu-ray in their core service and that Netflix includes streaming in their core service.



In fact, Blockbuster marketing highlights that they provide Blu-ray as part of their core service.

https://www.blockbuster.com/signup/planCompareOverlay


Right here it is their third large bullet point after "2 week free trial" and "No due dates or late fees". "Blu-ray - No extra fee".

https://www.blockbuster.com/signup/m/plan/


Just as Netflix markets that they include streaming as part of their core service.



Seems like the only other major difference is in the market success where Netflix has been successful to historic levels, while Blockbuster has shed customers to epic fail levels.
 

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Blockbuster has dropped the ball with Movielink, they should of pushed it on the CE providers from the beginning. Now Amazon VOD and CinemaNow are at the forefront of VOD. I don't expect Blockbuster to be around much longer, they have closed 50% of their stores in my town.
 

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Quote:
Originally Posted by PSound /forum/post/18175472


Please explain the major differences in the services from Blockbuster (their by mail service) and Netflix. As far as I can tell, the major differences are that Blockbuster includes Blu-ray in their core service and that Netflix includes streaming in their core service.



In fact, Blockbuster marketing highlights that they provide Blu-ray as part of their core service.

https://www.blockbuster.com/signup/planCompareOverlay


Right here it is their third large bullet point after "2 week free trial" and "No due dates or late fees". "Blu-ray - No extra fee".

https://www.blockbuster.com/signup/m/plan/


Just as Netflix markets that they include streaming as part of their core service.



Seems like the only other major difference is in the market success where Netflix has been successful to historic levels, while Blockbuster has shed customers to epic fail levels.

Blockbuster has been in trouble for years. On the verge of bankruptcy before bluray was ever available. Bluray has nothing to do with the overall failings of blockbuster. Keep trying though. The reason they emphasize bluray is simply for market differentiation because they don't charge extra for bluray. As you know bluray costs extra from netflix and has helped increase their arpu. You are really stretching trying to blame bluray for Blockbusters years of failures and corporate mistakes. Keep trying though, we all know free streaming is the magical elixir of success. Until they start to charge for it like everyone else, and usage falls off a cliff.
 

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Discussion Starter · #9 ·

Quote:
Originally Posted by bt12483 /forum/post/18175887


Blockbuster has been in trouble for years. On the verge of bankruptcy before bluray was ever available. Bluray has nothing to do with the overall failings of blockbuster. Keep trying though. The reason they emphasize bluray is simply for market differentiation because they don't charge extra for bluray. As you know bluray costs extra from netflix and has helped increase their arpu. You are really stretching trying to blame bluray for Blockbusters years of failures and corporate mistakes. Keep trying though, we all know free streaming is the magical elixir of success. Until they start to charge for it like everyone else, and usage falls off a cliff.

I am not blaming Blu-ray for all of Blockbusters failures.


I am comparing the Netflix service to the Blockbuster by mail service. Taking a look solely at those services, they are identical, except that Netflix provides streaming with their service while Blockbuster provides Blu-ray with their service.


So yes... you are correct. The market differentiation between Netflix and Blockbusters by mail service is that Netflix includes streaming and Blockbuster includes Blu-ray.


Within that context, Netflix has had stellar growth. I knew that Blockbuster by mail was not seeing the same growth, but I did not know that they were losing customers at such a drastic rate.



Blu-ray is not to blame for Blockbusters failures. Blockbuster not providing a service that drives new customer subscriptions and lowers customer loss is why their "by mail" service is failing.


Netflix simply has done a better job of building a service that grows customers, lowers churn and increases satisfaction.
 

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Discussion Starter · #11 ·

Quote:
Originally Posted by KLJ /forum/post/18176842


blu-ray has nothing to do with blockbuster's demise.. suggesting so is intellectually dishonest..

Care to explain the differences between Netflix's service and Blockbusters by mail service?



It is less about Blu-ray and more about Blockbuster's by mail service not providing what resonates with customers.
 

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Quote:
Originally Posted by PSound /forum/post/18177061


Care to explain the differences between Netflix's service and Blockbusters by mail service?



It is less about Blu-ray and more about Blockbuster's by mail service not providing what resonates with customers.

i have no doubt that streaming has helped netflix..
 

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does blockbuster have any props for sale like the limited full size spiderman mannequin thats worth $1000 but some people have gotten them at garage sales for al ot less
 

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Discussion Starter · #14 ·
There was also a report that NCR might buy part of the failing Blockbuster.

Quote:
Just hours before it releases fourth-quarter financial results, Blockbuster has reportedly engaged legal and financial experts to help the Dallas-based No. 1 DVD rental company restructure nearly $1 billion in debt.


Blockbuster, which is ambitiously staking its future on a multiplatform distribution strategy involving by-mail, kiosk, electronic, mobile phone and its shrinking store base, has been hamstrung by hundreds of millions in debt the majority of which it inherited after being spun off by Viacom in 2004.


The company has retained law firm Weil, Gotshal & Manges and investment bank Rothschild to explore restructuring its massive debt into equity and reworking loan agreements, The Wall Street Journal reported, citing sources familiar with the proceedings.
http://www.homemediamagazine.com/blo...-gallery-18546
 

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I don't read that Psound has specifically blamed Blu-Ray for Blockbuster's financial travails.


For me Netflix just offers a better value. I have used both services and though Blockbuster claims a refill rate that is the same as Netflix, my own experience belies that. If I returned a Blockbuster DVD or Blu-Ray on Monday I would not receive a replacement until Friday or Saturday. With Netflix I will have another DVD by Thursday at the latest, often on Wednesday. It has been several months since I used Blockbuster so perhaps their turnaround time has improved, I don't know.


Also, streaming beats the Blu-Ray option any day. Yes, I love Blu-Ray quality and Netflix streaming quality is quite variable, but the ability to scroll through hundreds of selections any time I want right from my TV and watch TV shows and movies of my choice is a powerful inducement, especially when it is offered at no additional cost.


Yes, if the pricing increases significantly for streaming then my opinion may change, because as has quite rightly been stated Blockbuster is ingrained in the American fabric and concomitantly in me as well. In fact my son had to argue vociferously to convince me to try Netflix. He was right. It will be interesting to see if Blockbuster can battle back.
 

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Quote:
Originally Posted by DragonLoaf /forum/post/18198606


For me Netflix just offers a better value. I have used both services and though Blockbuster claims a refill rate that is the same as Netflix, my own experience belies that. If I returned a Blockbuster DVD or Blu-Ray on Monday I would not receive a replacement until Friday or Saturday. With Netflix I will have another DVD by Thursday at the latest, often on Wednesday.

The stronger Netflix turnaround is the prime advantage for me. However, ther is another...Blockbuster now offers only "rental" editions of BD discs, that are stripped of Director's Cuts, commentaries, etc. So, for example, renting THE FINAL DESTINATION from Blockbuster only results in receiving the 2D version. Renting the same film from Netflix, you get the disc with both 2D and 3D versions.
 

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Quote:
Originally Posted by DragonLoaf /forum/post/18198606


I don't read that Psound has specifically blamed Blu-Ray for Blockbuster's financial travails.


For me Netflix just offers a better value. I have used both services and though Blockbuster claims a refill rate that is the same as Netflix, my own experience belies that. If I returned a Blockbuster DVD or Blu-Ray on Monday I would not receive a replacement until Friday or Saturday. With Netflix I will have another DVD by Thursday at the latest, often on Wednesday. It has been several months since I used Blockbuster so perhaps their turnaround time has improved, I don't know.

This is highly dependent on your location. For me, the turnaround time of both services was roughly equal. The big difference was that I rarely got new releases with Netflix. It was almost always a three to four week wait. With Blockbuster, I normally get new releases the first week. There are a few exceptions, but they're rare. With Netflix, it was exactly the opposite.


As an added bonus, Blockbuster is cheaper, since they don't have the scammy BD fee. They also haven't agreed to any studio delays. Yet.


Scott
 

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Quote:
Originally Posted by Joel Clemons /forum/post/18198731


However, ther is another...Blockbuster now offers only "rental" editions of BD discs, that are stripped of Director's Cuts, commentaries, etc. So, for example, renting THE FINAL DESTINATION from Blockbuster only results in receiving the 2D version. Renting the same film from Netflix, you get the disc with both 2D and 3D versions.

I think that's film-dependent. I've recently got BDs that included the extras and alternate cuts.


Scott
 

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Quote:
Originally Posted by srw1000 /forum/post/18200728


I think that's film-dependent. I've recently got BDs that included the extras and alternate cuts.


Scott

Definitely film-specific. I've gotten the "movie-only" version of several films from Netflix as well....no menus, no extras...just starts playing the movie and that's it.
 

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Quote:
Originally Posted by PSound /forum/post/18177061


Care to explain the differences between Netflix's service and Blockbusters by mail service?



It is less about Blu-ray and more about Blockbuster's by mail service not providing what resonates with customers.

Or it might be about neither ... maybe Netflix has better advertising / branding / marketing than Blockbuster's mail service?
 
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