Blockbuster goes Chapter 11

In a move even Ray Charles saw coming (what, too soon?), Blockbuster Video notified DVD distributors that it would be filing for Chapter 11 Bankruptcy next month. It's reorganization, but it's still a bad sign for the rental chain that has been in business since the invention of VHS tapes.

Blockbuster is notifying distributors now in an attempt to continue to get inventory for the few stores across the country that haven't closed as the company attempts to clear up some of its $1 billion debt. Most of the debt is coming from rent on the remaining stores, and they are looking to bail out on that, allegedly. I doubt, however, that this will look good to distributors, and wouldn't be surprised to see far less inventory in stores in the upcoming months. I mean, who would give a store in bankruptcy credit for movies?

The move has been coming for awhile now, and the company is always on the "companies to watch sink this year" lists for the past 5 years or so, thanks to companies like Netflix and Red Box.

I personally am going to miss the brick and mortar stores. While I haven't been in one for a long time, there is something that is soothing to my Chi knowing I could if I wanted to. While my Chi doesn't pay the bills, I understand why they are disappearing. I mean, I'm a huge fan of Netflix, and Blockbuster just seems to be throwing blind solutions at the problem of evolution and hoping something sticks. It's clearly not the way to run a business.

So, are you sad to see them go?

The Block is at it again

Alright, I just have to get this out there: I am so glad I no longer work there!

Ok, so, on to the news. Blockbuster is trying to keep it quiet, but they are slowly phasing back in late fees, starting next week. As of about 5 years ago, late fees were about 22% of the total revenue of the brick and mortar stores, and was the biggest strain on my wallet since my addiction to movies. After Blockbuster got rid of late fees and just charged people for the movie in order to try and stay competitive with Netflix, they realized they no longer had movies to rent.

So, now, like a flashback to 10 years ago, late, uhh, "Extended Viewing Fees" are back, but a bit more generous. Now, it's a flat $1 per day, up to $10. So, technically, you could keep out the movie for three months, and all you would be charged is 10 bones. I don't think it's a bad deal, but if you keep it out for a week, the $10 plus the $4 and change it costs for the movie, you could buy the movie. Atleast you don't have to worry about seeing those people who came in with an $87 late fee bill, and pretend not to laugh as they pass out.

I think this is a step in the wrong direction for The Block, and is just another nail in the closet. I personally don't think they should've gotten rid of late fees, but now they have, they can't go back, and attempting to do so will just alienate the four customers they have left.

Oh well, it was good while it lasted, Blockey!

Would you miss wandering the wall?

I've discussed quite a bit about my feelings on video stores, and their unfortunate decline, but now, one of the best movie news sites, /Film has a post about whether you would miss the brick and mortar stores. Here is the post, check out the comments, they seem to range from people who will miss it to those who are diehard Netflix users.

"In their most recent episode, they wax nostalgic about VHS (who among us DIDN’T love storing 8 hours of footage on a single cassette tape?) and Dan Trachtenberg concludes that while there were positive aspects of the video store experience, a lot of what people are holding onto when it comes to the demise of video stores is actually some romanticized notion of what the rental experience was like, rather than reality."

What do you think, is it nostalgia getting the better of us, or are we gonna miss the thrill and spontaneity of going to the store?  Discuss.

Blockbuster closing 960 stores!

That's right, you saw that correctly. The movie store chain responsible for most of the movie geekery in my childhood and many others is closing 20% of its stores this year. The stores are moving toward the kiosks that Redbox made famous. The move looks to save them #30 million annually.

I have made this clear before that the Block will always have a special place in my heart. I gave the company quite a few years of my life, and I met some truly wonderful people that I still stay in contact with. I don't like their business model, however. Just recently, I reported Blockbuster had cut down on its movie inventory to make room for shirts, and other movie apparel. Now, they are showing their reactive side by seeing Redbox made some money, and they should follow suit, just as they did with that horrible online program they have.

With moves like these, its a wonder the store is still standing, but I'm still hoping they can turn it around. I would hate to think my Niece, Han Solo, will not grow up being able to shop the wall at the Block.