Holy popcorn! Blockbuster to close up to 960 locations
Filed under: Company News, Netflix, Blockbuster
File this in the horror section: struggling movie rental giant Blockbuster (BBI) said Tuesday it will close up to 960 stores by the end of 2010. If Blockbuster does hit that target, it will represent a 22 percent decline in the company's store count. Competitors Netflix (NFLX) and RedBox have flourished in recent months, but Blockbuster's massive fleet of cash-burning stores and its substantial debt load have made it impossible for the company to keep up.Blockbuster had been pitching consumers -- and Wall Street -- on the idea that it could offer a unique value proposition by combining online and mail order DVD viewing with the convenience of renting movies in-store too. The problem? That benefit just isn't attractive enough to consumers to justify the cost of operating a chain of stores that are growing less relevant everyday. The decision to quicken the pace of store closings is an admission that this strategy isn't working.
All other things being equal, Blockbuster has one major disadvantage: a lousy balance sheet. And with nothing except "me too" ideas like rental by mail and DVD kiosks, it's hard to see Blockbuster existing as a meaningful part of the industry for too much longer.
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Tough Times for Blockbuster
Struggling video rental chain Blockbuster could close nearly 1,000 stores by the end of 2010. Click through the gallery to see which retailers have been forced to close their doors during the recession. Then take a look at those that are actually using this time to expand.
Eric J. Shelton, AP
Eric J. Shelton, AP



























Reader Comments (Page 1 of 10)
9-15-2009 @ 8:06PM
alex bermudez said...
Have you ever tried to rent a movie from the BB? It's horrendous if not ridiculous. $4.13 a pop. I can buy a brand new copy of that same flick at Walmart.
Reply
9-15-2009 @ 9:43PM
mrrickbear said...
You are on the right track. Their prices were too high. You can rent a brand new video for a buck at a Red Box. So why drop four times the amount at Blockbuster?
9-16-2009 @ 11:32AM
Mike said...
I worked at Blockbuster for a year until this past May and at my location rentals were $5.36 after tax for Blu-Ray and new releases(anything out within the past year). I knew they weren't going to last when they started to cut 4 shifts a week at a store with only 10 employees(my shift was the lucky one that usually got cut).
9-16-2009 @ 6:07PM
Marsha said...
Their online prices are way higher than netflix. Redbox is fine, but very limited.
There were cheaper chains, but BB made their prices really low until the chains went under. Then they raised them tons. So just desserts.
9-15-2009 @ 8:46PM
lilljenni469 said...
omg there cloing them thats sad
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9-17-2009 @ 11:50AM
Jean said...
It was inevitable!!!!!!!!!!!!!!
9-15-2009 @ 8:52PM
GarBren8 said...
We usually get a reasonable feed of choices from movie channels on cable, but we sometimes borrow dvd's "FREE", or a dollar a day at the library. If anyone wants to save some bucks, check it out (pun intended).
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9-16-2009 @ 5:07PM
birchibaldbarlow said...
Typical scumbag. Asking the public to fund your entertainment. People like you are the reason libraries have become a burden to cities. Do you want us to pay for your dvd player, as well? Libraries should NOT stock movies for entertainment, they should learning institutions. You are no better than the homeless bum who sleeps in the downtown library.
9-15-2009 @ 9:11PM
John said...
"Blockbuster"
I always thought it bizarre that a company would choose as its name the name of a weapon of mass destruction intended for use against civilian urban targets. First employed against Germany, and later Japan, by US Army Air Force in WW2, it was a huge conventional bomb, capable of flattening one city block...hence the name/nickname.
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9-16-2009 @ 12:22AM
Vince said...
Yes, there was a bomb developed by the RAF and used by the Army Air Corps named the Blockbuster, but I believe the chain is named after the Theater slang. In the motion pictures industry, a "blockbuster" is a movie that is an instant success. I think they are trying to say their movies are blockbuster hits. And at the prices they charge, they should be!!!
9-15-2009 @ 11:42PM
JOHN said...
B.S.
9-16-2009 @ 4:40PM
Bob said...
Hi, John...
Actually, John, I think you'll find the term more appropriately taken from the movie industry itself...a film that was a better draw than all the other theaters around it was called a "blockbuster". And don't you suppose the Blockbuster folks would prefer you thought of it in that way? 8-)
9-16-2009 @ 4:35PM
Mike said...
Dude, what planet are you living on? You must also believe that the entire lunar landing was shot in a film studio at Area 51. . .
9-16-2009 @ 4:40PM
Sheepish said...
My local BB has a habit of opening late. I also don't like the 11 a.m. opening on Saturdays.
9-17-2009 @ 1:59AM
Dan said...
No the term blockbuster has been used to describe a hit movie for 60 years
9-23-2009 @ 2:47PM
Michael said...
John, You are obviously under 40. A "Blockbuster" is a Great Movie Hit and it evolved into other names. Blockbuster is a very appropriate name for a company who rented movies, or "Blockbusters". Movies like "Gone with the Wind", "Dr. Zhivago", "Patton", and on and on.
You show your lack of knowledge when you can only reference things from the past 20 years or so. This is likely why those of us who are older, wiser, more experienced consider those like you with small brains, irrevelant!
9-15-2009 @ 10:31PM
BABESTER said...
SEE,
YOU CAN NOT RENT A DVD A SENT IT BACK 1 WEEL LATE NO CHARGE!!!!! BLOCKBUSTERCAN NOT DO THAT.
1 MORE THING ONCE BLOCKBUSTER WAS OR HIRED THE LITTLE DUDE FROM THE S0PRANO'S WHICH TURNED OUT TO BE A BAD PUBLIC RELATIONS CHOICE ON BLOCKBUSTER MAYBE JUST MAYBE THEY COULD SEE TONY FOR A LOAN ;) LOL :) BLOCKBUSTER PUT ALOT OF SMALLER GUYS UNDER THAT WERE ALSO RENTING OUT VCR,AND DVDS NOW EVERY DOG GETS HOS DAY,I CAN SAY I AM NOT SORRY TO SEE THEM GO, AMF BLOCKBUSTER YOU CAN NOW RENT DVD FROM MACHINES IN STOP & SHOP ALL YOU NEED IS A CREDIT CARD THEY HAVE A GREAT CHOICE TO.ALSO PLEASE DO NOT WATCH TO MANY DVDS LETS HAVE ANOTHER BABY BOOM TOSS OUT ALL T V S HAVE SEX INSTEAD
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9-15-2009 @ 9:25PM
jennifer said...
Blockbuster has been ripping people off for years with exorbitant late fees and other charges. I stopped going there along time ago. I guess they should have thought more about overcharging people so bad they chased their customers away.
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9-16-2009 @ 5:03PM
Fusion said...
Jennifer, you said it all!
9-15-2009 @ 9:18PM
Etohdoc said...
They should have already been shut down. Most expensive movies on the planet. TERRIBLE CUSTOMER SERVICE.
Reply