Bye Bye Blockbuster!
11/24/2008 15:11
It’s hard to care much about a company whose products you use when they forget about customer service and take a too-little, too-late approach to evolving their core business model. Blockbuster Inc. is a huge case in point. The one-time DVD rental-only, brick-and-mortar chain giant rubbed customers the wrong way, in some cases from the outset, when they were still relevant. The limited availability of hot new releases (not enough copies), late fees for those who didn’t operate on Blockbuster time, the long lines and the mail notices reminding you of late fees incurred are/were the antithesis of a customer-centric company. But in a span where options were very limited, people put up with the silliness. My local Blockbuster, up here in the suburbs of Boston, was standing room only on Fridays, before and during holidays, and whenever bad weather threatened to make a drive to the movieplex questionable. Years later (and definitely not overnight), the store is largely a ghost town and one of the biggest monuments in the content world to the saying “evolve or die.” They did eventually offer a monthly subscription plan and online ordering but... All I have to do is visit the store to see what countless others have already seen: the majority of floor space dedicated to everything but DVD rentals. But how do you sell popcorn, candy, movie posters, used DVDs and game systems if you can’t get people back in the store to begin with? I had filed a story on a direct mail Blockbuster piece for the holidays that was evidence of the change, and lack thereof, in their business model. I was going to let it go at that. But then a reader rightly pointed out that even adding up subscribers of Blockbuster and big rivals still suggests that a huge majority of consumers are not tech-savvy enough to use these offerings. That’s a solid point. However, cable operators and telco TV operators started addressing the gap long ago with now-huge video-on-demand libraries including both free and pay movies for about the same price as a Blockbuster rental. You use your remote instead of your car and never have to leave the couch. Access to VoD comes free with every TV service hookup I can think of. Sure, that creates problems for cinemas, but cinemas get the movies first. Blockbuster focuses on DVD releases, which often come out the same day they're available on pay VOD. Why then would anyone visit Blockbuster? Maybe to ask for help in setting the correct time for their VCRs...
User Comments !
So true, the only thing that blockbuster has going for them these days is their online movie rental, they might as well put all of their effort into that. Hollywood video by my house is still in business somehow....
Posted by: Clean Red Widgets | November 24 2008 21:02:46
I do know some people who still use Blockbuster, including my parents. It's been over a year since I rented from a store and I was surprised at how expensive it was. I haven't been tempted to go back since. I don't watch many movies, but I would be more likely to go to Hulu and see what is available. Hard for me to remember a time before cable internet.
Posted by: Carrie | November 25 2008 13:12:00
Hi Bob,
That's exactly right, they were king of the hill so they just basically did what they wanted (including charging a small fortune for any food etc you wanted - ours is right by a Sainsbury's so why would I pay that??) and now they are paying the price.
I did rent a movie out recently I must admit, not having Sky really limits the amount of good movies I can get access to. But in the future I don't see a place for Blockbuster, we'll just download everything we need straight to our TVs.
K
Posted by: Katie Weston | November 26 2008 02:00:46
Some very good points. However, Blockbuster online seems to have an Edge over Netflix because of the history Netflix has had in Delays of Video Delivery and with Blockbuster you can exchange mailed Videos in their stores, getting several in store rentals Free on top of the membership program.
With PPV and VOD the selections are still very limited. You still don't see anything but mostly New Releases, not the 10,000 or 20,000 + Library of Videos we've been hearing/drooling about for years now.
Posted by: Jay adams | November 26 2008 07:27:48
Blockbuster is firmly stuck in the stone age. They have no concept of what a customer is or evolving technology.
Mark
Posted by: mark philips | December 09 2008 07:24:29
Blockbuster will be the new Woolworths. They have been around for ages, but just don't have the innovation to take them forward.
It's only a matter of time for Blockbuster.
Alan
Posted by: Alan | December 09 2008 12:26:35
Ive used blockbuster since i was a little boy but with cable tv (on demand) and sky TV ive rented videos less and less over the years. But.. i did go into blockbusters only last week, i was hugely dissapointed, where there used to be aisles upon aisles of random movies, now the whole place was stripped out to just the new releases rack. No chance of diggin up a classic in my local blockbuster these days.
Posted by: Wales Rugby Shirt | December 19 2008 01:11:41
i go to blockbuster to rent blu rays..... i think that is the last option for them
Posted by: ivan santos | January 27 2009 19:12:00
I haven't been to Blockbuster for years. It's too easy now to buy dvd's cheap from local supermarkets or online off Amazon. I think the increading popularity of these sites and the fact supermarkets sell nearly everything will spell the slow and painful demise of chains like this.
Posted by: How To Burn Fat | January 10 2010 05:19:30
|
