The Briefing Room
General Category => Economy/Business => Topic started by: Cincinnatus on November 07, 2013, 06:31:33 am
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The final curtain is falling on the remaining Blockbuster video-rental stores that Dish Network Corp. runs in the U.S.
About 300 Blockbuster locations scattered around the country will be closed by early January. But 50 franchised stores will remain open in the U.S.
As part of Dish Network's retreat, Blockbuster's DVD-by-mail service is also shutting down next month.
About 2,800 people who work in Blockbuster's stores and DVD distribution centers will lose their jobs, according to Dish Network.
The cost-cutting measures culminate a Blockbuster downfall that began a decade ago with the rise of Netflix's DVD-by-mail service, followed by the introduction of a subscription service that streams video over high-speed Internet connections.
"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," Dish Network CEO Joseph Clayton said in a statement Wednesday.
The shift has been a boon for Netflix Inc., which now boasts 31 million subscribers to its Internet video service and another 7.1 million DVD-by-mail customers. The company's success has minted Netflix with a market value of $20 billion.
But Blockbuster absorbed huge losses. It closed thousands of its stores before landing in bankruptcy court three years ago. Dish Network bought Blockbuster's remnants for about $234 million in 2011 and then tried to mount a challenge to Netflix.
But the Englewood, Colo., satellite-TV provider couldn't wring a profit from Blockbuster either, prompting even more store closures
http://money.msn.com/investing/news.aspx?feed=AP&date=20131106&id=17079220>1=33002&ocid=ansmony11
Done in by Netflix and Redbox.
I find this sad as we have a Blockbuster not far from us we often use for old movies. Then, too, it means the elimination of nearly 3,000 jobs, many entry level, in an otherwise poorly performing Obama economy.
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http://money.msn.com/investing/news.aspx?feed=AP&date=20131106&id=17079220>1=33002&ocid=ansmony11
Done in by Netflix and Redbox.
I find this sad as we have a Blockbuster not far from us we often use for old movies. Then, too, it means the elimination of nearly 3,000 jobs, many entry level, in an otherwise poorly performing Obama economy.
What, you expect them to actually get off their asses and drive to pick up a movie? Or organize themselves well enough to pick one up on the way to work or the way home? Besides - who wants to see a bunch of old movies anyway?
It is the era of instant gratification, my friend. It'll get worse before it gets better.
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I remember back in the day going to Blockbuster was a real treat. I mean a luxury to be able to rent a movie.
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Entirely inevitable, given the technological advances of the past decade. We are rapidly approaching a communications "singularity" in which Internet=Television=Radio=Entertainment, all delivered in binary electronic form from cloud-based servers, available anywhere via wireless broadband.
It is rather convenient to have millions of web sites, programs, books, movies and sporting events from which to choose instantly. It is also liberating, for those who can choose - and afford it.
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Entirely inevitable, given the technological advances of the past decade. We are rapidly approaching a communications "singularity" in which Internet=Television=Radio=Entertainment, all delivered in binary electronic form from cloud-based servers, available anywhere via wireless broadband.
It is rather convenient to have millions of web sites, programs, books, movies and sporting events from which to choose instantly. It is also liberating, for those who can choose - and afford it.
I don't miss Blockbuster.. I do remember it was a pain in the butt just to look for the movie and it wasn't there.. With Redbox, all I have to do is look for a Kiosk for the movie that we want..
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What, you expect them to actually get off their asses and drive to pick up a movie? Or organize themselves well enough to pick one up on the way to work or the way home? Besides - who wants to see a bunch of old movies anyway?
It is the era of instant gratification, my friend. It'll get worse before it gets better.
It may be, but it's also the era of more efficient distribution of goods such as movies, and there Blockbuster simply failed to get out of the way of the on-coming traffic; into every industry some road-kill must come.
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I remember back in the day going to Blockbuster was a real treat. I mean a luxury to be able to rent a movie.
I remember back before Blockbuster put all of the little mom-and-pop video stores out of business. What goes around comes around.
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It may be, but it's also the era of more efficient distribution of goods such as movies, and there Blockbuster simply failed to get out of the way of the on-coming traffic; into every industry some road-kill must come.
True. Yet does more efficient always mean better? Take books, for example - one close to my heart. Amazon is efficient. It is not the same as going to a book store and just browsing. You see and pick up things you never would have otherwise. Our book store has little handwritten notes from the staff stuck to the shelves the books they have read, which is a nice touch. I know Amazon tries to mimic the browsing aspect with the "People who bought this also bought..." feature, but it just isn't the same.
Or take food. Supermarkets have the most efficient distribution systems, by far. Tesco is our biggest chain over here and has actually stopped making massive complexes out of town, in favor of smaller local stores. They are voluntarily reducing their efficiency in distribution in order to catch more market share by being local and within walking distance.