Tuesday, October 12, 2010

Say Goodbye To Blockbuster?

It was announced this past week that the movie store Blockbuster may be closing down even more of their locations. After filing for bankruptcy, these movie stores are trying to find a way back into the market to compete with the new competition. Between Netflix, movies on demand through certain cable providers, and Red Box, Blockbuster has taken a hit. What makes Netflix, movies on demand, and Red Box more likable to the consumer is that they are more convenient. Netflix delivers movies right to your mailbox, on demand allows you to select and watch a movie from the comfort of your home, and red box is located at convenient neighborhood retailers, like gas stations or food stores, and it only costs a dollar per night to rent a movie. At Blockbuster, not only do you have to be a member to rent movies, but they cost about $4, and there are late fees.

Right now, there are about 30 blockbusters in Washington Metro area. Blockbuster headquarters are saying that they are going to keep these locations open while working their way out of debt. However, this seems unlikely. Blockbuster spokesperson Patty Sullivan says the company's goal is to "enhance the overall profitability of operations". With having already 148 stores close, this seems to be the best way to increase money.

Blockbuster needs to find a way to reestablish themselves. Going out to a video store and renting a movie is obsolete. They need to find a new way to rent movies to consumers conveniently and inexpensively. Maybe if they took their business online, like netflix, they could compete better. Or what if they created packages where a consumer can have the whole video store on their TV for a low price each month? Either way, there needs to be some sort of change in their sales strategies, and they need to make them fast if they wish to remain in the movie selling business. What other ideas do you guys have for Blockbuster in terms of reinventing themselves.

Written By: Ariel Levin
Article Used: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/10/AR2010101003147.html
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1 comment:

  1. Leya AbebeNovember 1, 2010 at 4:06 PM

    This is so sad! I grew up with Blockbuster and no other movie rental store. I hope it doesn't shut down for good. In my area, Blockbuster was always the place to rent movies. Families and individuals would run in to each other countless times. I feel like with the expansion of those other movie rental business, Netflix, movies on demand, and Redbox, Blockbuster failed to market what it already had well enough besides the new options it had for members.

    Closing stores to minimize cost as it goes through its financial struggle is a good beginning. They can and should allot more capital towards revamping member benefits and a plan without late fees while instating a new advertising campaign. For many people, they are either forgetting about the store or just don't know about it.

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