Blockbuster

[andy78]

Are about to go out of business.

Blockbuster plans to file Chapter 11 bankruptcy

Increased competition in the video rental business has taken a toll on Blockbuster rental stores.

By David Lieberman

Hundreds of communities may soon lose their local video stores. Blockbuster — the company that helped to turn movie renting into a national pastime — is set to file for Chapter 11 bankruptcy protection today, Bloomberg News reports, citing an unnamed person who knows about the plan.
Blockbuster declined to comment.

A filing would come about a month before the 25th anniversary of the opening of Blockbuster's first store, in Dallas. " 'End of an era' summarizes it neatly," says John Tinker, senior media analyst at Maxim Group, a brokerage firm.

VIDEO RENTALS: Myriad ways to watch at home get confusing
Bondholders led by billionaire Carl Icahn will take control of the video rental giant, which has missed some payments on its nearly $1 billion in debt, Bloomberg says.

As word of that likelihood spread, the price of Blockbuster shares fell 31.3% in private trading on Wednesday to 2.5 cents. Blockbuster was delisted from the New York Stock Exchange in July.

The video chain owned 3,023 stores in the U.S. and had 402 franchises as of July. A bankruptcy "will enable (Blockbuster) to break the leases," says Kenneth Latz, director of the New York office of financial restructuring firm Conway MacKenzie.

But Blockbuster still must compete with rivals led by Netflix and Redbox, as well as services that offer movies on demand via cable, satellite and the Internet.

"On the ropes" Blockbuster could eventually liquidate, says Kim Noland, who tracks high-yield debt for analysis service Gimme Credit. That happened this year to Movie Gallery, which was the No. 2 video chain.

Blockbuster's effort to compete with Netflix, which mails DVDs to subscribers who order them online, appears to have stalled. Blockbuster's website attracted 2.9 million unique visitors in July, down 72.6% from the same month in 2007, ComScore reports. Netflix had 21.7 million visitors, up 132.9% over the three-year period.

"The glory days are gone," says Harold Vogel of Vogel Capital Management.

Will be a shame if they go under, unless you owe them late fees.

[Rawshack]

Originally Posted by andy78

Are about to go out of business.



Will be a shame if they go under, unless you owe them late fees.

Interestingly enough, the only video store near us that seems to be going great guns is the alternative/foreign shop. The DVD is a dying format.

We're at the worlds end.

[Jesse The Body Ventura]

Never rated Blockbuster, they took over from Ritz who were much bettah..

[Vegasfella]

They've been cutting stores here for about a year or so..... since Hollywood video / movie gallery started closing stores as they were going out of business.... over saturation and high prices are killing them here, why rent for 5 days for 5 dollars when you can get the same movie for a dollar from the rental kiosks at pretty much every grocery store

[Crammers]

Originally Posted by andy78

Are about to go out of business.



Will be a shame if they go under, unless you owe them late fees.

They don't charge late fees here. Just charge you for the DVD/Bluray after you keep it for 30 days

They have some major competition from NetFlix (US Lovefilm) which also lets you stream a lot of their catalogue to your PS3, Xbox360 or Wii.
Plus they have rental vending machines in practically every supermarket now, rent top titles for $1 a day.

The reason they are fucked is because they charge $6 to rent. who wants to pay that when you can get it for $1.

[Vegasfella]

Originally Posted by Crammers

They don't charge late fees here. Just charge you for the DVD/Bluray after you keep it for 30 days

They have some major competition from NetFlix (US Lovefilm) which also lets you stream a lot of their catalogue to your PS3, Xbox360 or Wii.
Plus they have rental vending machines in practically every supermarket now, rent top titles for $1 a day.

The reason they are fucked is because they charge $6 to rent. who wants to pay that when you can get it for $1.

Late fees are back here in Vegas..... redbox is killing them though.... they've closed 3 or 4 stores here in the past year

[anewloginapparently]

The British company is an entirely seperate entity so should survive in the meantime but can't see it lasting long term as it's a dying market with the internet going to take over and DVDs so cheap in supermarkets why rent when you can buy for 3 quid for a film (albeit not a brand new one).

When I lived in Manchester they had DVD vending machines too where you could rent DVDs automatically, never seen them anywhere else though.

Would be a shame to lose the video shop as it's where you find the kind of second level films that never make it big, seen some cracking films down the years from blockbuster that I'd never heard of otherwise.

[oothefuknellsleeds]

hope not, just started using it again

[Pell]

i used to keep the one on north road in business buying popcorn everyday

[dixonsafc]

'Internet killed the DVD rental company.'

Doesnt quite work as well