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]

[cassnate6259 Posted Sep 16th 2009 9:41AM]

Americans are caught in a catch 22. If we let a dishonest company deservedly fail, many Americans lose their means of livelihood along with it. The challenge is to save American jobs while somehow holding corporations liable for their mistakes.

In the long run, I'd say let the consumers' decisions allow the dishonest companies to fail, but I'm sure my opinion would be different if my job were on the line.

[bjsguess Posted Sep 16th 2009 3:31AM]

It's called Karma. BB has screwed over consumers for years now. Not a lot of tears being shed over their demise.

They routinely took positions that in the short term padded their bottom line but in the long-term lost them customers. Now, their customer base is shrinking and they can no longer stay in the black.

If you want to take on Netflix get back to the original Total Access plans. $18/month with unlimited mail rentals + free in-store/kiosk exchanges (because of poor turn-times I can rent more videos through Netflix than I can with BB even with the 5 extra in-stores). Provide incentives for customers to stick around for a 6 month contract by lowering the price $2/month. This will reduce the customers who pay the $18 and burn through as many titles as they can for the 30 day period.

Finally, don't throttle customers. Use that as a centerpiece of your plan. Let everyone know that Netflix screws with their customers and that you will pledge not to do that.

I think there is hope ... BB just needs to turn a new page in their company history and start doing right by the customer.

[(Unverified) Posted Sep 16th 2009 5:32AM]

Whatever happen to the idea of Hollywood videos buying BlockBuster, or the other way around?

http://www.ecityvalue.com

[Nicnac Posted Sep 16th 2009 10:54AM]

Simple:

1: Change your on-demand from 'rent a movie for a price' to 'add any movie to a queue for free with subscription (like what Netflix does).

2: Make a deal with Sony, and add 'Blockbuster Online' to the XMB on the PS3.

Back in business.

[(Unverified) Posted Sep 16th 2009 11:38AM]

all the blockbusters in my area are closed already.

[(Unverified) Posted Sep 16th 2009 12:59PM]

I would say "good riddance", but it's the only video store in town. One grocery store still rents videos, but I'm sure that's about to end soon. I don't consider Red Box for anything than a larf - $1 a day, really?

I did subscribe to the Total Access plan bjsguess mentions. Then they nearly doubled the cost and reduced the benefit overnight. I complained and they were total d*cks about it. My view is don't offer a product you can't make money. Secondly and most important, treat your customers well.

My wallet is much happier, no more $15 a month charge, but I visit the local b&w Blockbuster only once every 2 to 3 weeks.

[(Unverified) Posted Sep 16th 2009 10:42PM]

Just goes to show that this is the most incompetent management team on the planet. First invest tons of money into retail stores, then finally realize that its a bad business move and start shutting them down.