

Block Buster Reports A Loss... blames bad movies... might be right. - keltecp11
http://blogs.dallasobserver.com/unfairpark/2009/03/why_is_blockbuster_suffering_s.php

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ShabbyDoo
My wife now spends a lot of time in front of the TV breast-feeding the
recently-arrived kid #2. So, I got her a Netflix Roku box. She was skeptical
at first but is now quite pleased. If all movies were available this way, I
think she'd forgo renting DVDs. Quality isn't as good as Blu-Ray, but it's
better than an old-school DVD.

How can Blockbuster compete against Netflix when its business model is based
on the retail distribution of physical goods? Netflix is working hard to
cannibalize its dvd-by-mail business and will end up with a much higher margin
business as a result.

IIRC, a few years ago, Blockbuster was telling investors that consumers loved
the experience of going to the video store to pick out rentals! Don't worry,
nothing's rotten here folks.

BTW, the Roku works really well. Other than its screwy menu scheme (ok once
you readjust your assumptions), it's a beautiful simple device.

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CWuestefeld
Interesting. I wonder if rentals as a whole are down. If so, then this would
suggest that the MPAA claims that piracy is killing the industry are wrong.
This would be especially true because cheap rentals are the obvious substitute
for expensive theaters in a tight economy.

On the other hand, the recent crop of crap movies can only account for so much
in the video rental business. I mean, it's possible to rent older movies as
well as new crap, so if people just want to watch a movie, and the new ones
are lousy, wouldn't they just watch a good old one?

