Rest of article here.November 2, 2007 9:26 AM PDT
Say goodbye to Blockbuster
Posted by Don Reisinger 4 comments
The end is here
(Credit: Crave)It looks like the bottom has finally fallen out of Blockbuster. After numerous failed attempts at attracting new customers, the company is finally spiraling out of control.
Sad as it is, the end is near for Blockbuster, and all that pressure it has been placing on Netflix will be lifted.
And in the end, Netflix will be left standing to fight another day.
Although Blockbuster tried everything it could to create a compelling reason for us to use the service, the company could not overcome its downfall. For years, it was hated by those people who saw it as a monolithic organization that enjoyed charging exorbitant late fees and had little or no care of what the customers wanted most. So when Netflix offered an entirely new service, the dynamics of the industry was inexorably changed, and Blockbuster was left playing catch up.
According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close.
But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership.
Sorry, Jim, but I think you're out of luck.
Weird, I would have thought running a fundamentalist Christian corporation predicated on punishing people (late fees) would have worked out better.
You keep making customers mad, they are going to be overjoyed to see you fail. Late fees are one of those things that sound great on the Internet, but don't work out in real life. "What, you're saying you should keep that movie... forever???" Actually, sure. You bet. It's not an issue with Netflix.
And Blockbuster's "no more late fees" campaign was desperate and hilarious.
I can't say I have had bad service at a Blockbuster. In fact, I remember more helpful employees than Failed Romeros. So it's nothing against them. But I'm happy to see the entire corporation doing miserably.
