Blockbuster Video Bankruptcy

[HoosierGuy]

Blockbuster Video, the video renting chain that had stores all over the U.S., filed for

bankruptcy. They can't compete with Netflix, online streaming, and Red Box.

So after months of struggling with its $900 million debt load and after missing $340 million in debt payments, Blockbuster has finally filed for Chapter 11 bankruptcy. This morning the retailer announced that senior bondholders will cut its debt by 90 percent to about $100 million, exchanging senior debt for equity. Now senior bondholders will provide a $125 million loan to support operations.

News Headlines

Here in Indiana, I'm seeing nearly all the video stores closing down. Blockbuster closed down their two or three shops last month. They had a big sale too and on the news one guy walked out with DVDs in one hand and the bubble gum machine in the other!

The local video store close by me in a small strip mall closed down too.

Personally, I hardly rented videos. I never liked video stores. I much prefer Netflix and online streaming or even buying DVD, although I rarely buy them now. I do Netflix.

So long Blockbuster, see ya on the net, maybe.

Edited September 29, 2010 by HoosierGuy
Spelling

[curtishouse]

Blockbuster Video, the video renting chain that had stores all over the U.S., filed for

bankruptcy. They can't compete with Netflix, online streaming, and Red Box.

So after months of struggling with its $900 million debt load and after missing $340 million in debt payments, Blockbuster has finally filed for Chapter 11 bankruptcy. This morning the retailer announced that senior bondholders will cut its debt by 90 percent to about $100 million, exchanging senior debt for equity. Now senior bondholders will provide a $125 million loan to support operations.

News Headlines

Here in Indiana, I'm seeing nearly all the video stores closing down. Blockbuster closed down there two or three shops last month. They had a big sale too and on the news one guy walked about with DVDs in one hand and the bubble gum machine in the other!

The local video store close by me in a small strip mall closed down too.

Personally, I hardly rented videos. I never liked video stores. I much prefer Netflix and online streaming or even buying DVD, although I rarely buy them now. I do Netflix.

So long Blockbuster, see ya on the net, maybe.

That's sad. A lot of good memories going to Blockbuster renting movies. I guess its just the nature of technology. I'm sure the owners of the former small video stores that Blockbuster knocked out of business are smiling a little bit when they hear of this news.

[gabelpa]

Personally I am glad to see them go. Soon, the last remnants of the old Republic will be stripped away.. wait.. wrong movie. Anyhow, while it is a shame to see a brick and mortar store die out, they didn't exactly move with the changes or adapt.

[pam]

Honestly who didn't see that one coming with the age of Netflix and RedBox?

It's not just Indiana, they are closing down in Utah as well. Hollywood video is shutting a lot of their stores as well.

[gabelpa]

I guess setting up a distribution network to rival Amazon is not easy when you're sitting on nearly a billion in debt.

[Wingnut]

I read an article last week on Newsweek about Blockbuster's impending bankruptcy. It was rather interesting. The Rise and Fall of Blockbuster - Newsweek

Pam, it shouldn't be surprising that Hollywood Video is shutting down its stores, too. I haven't seen one for years. was bought out in 2005.

[Gemma]

This makes me sad! FunkyTown and I go to blockbusters all the time - netflix requires advanced planning rather than a 'what shall we do to night', and if he was here he'd give you his rant on the stupidity of people who download movies.

Hopefully they'll be staying open here in the UK :)

[Just_A_Guy]

It's Chapter 11, not Chapter 7. They're reorganizing, not liquidating.

Some branches will close, but Blockbuster as a corporate entity will continue to function--just like GM, Delta Airlines, and a host of other companies.

[NeuroTypical]

Three or four years ago, after paying the umpteenth late charge at checkout, I finally stormed out of their dumb store and destroyed my membership card. I remember hoping their horrible "make money through late fees" policy would reap what it was sowing - eihter change, or bankruptcy due to unhappy customers going elsewhere in droves.

I switched to Netflix, and they made me feel all warm and fuzzy inside. Then I switched to blockbuster online, because they were a few bucks cheaper a month. After umpteen bad experiences with customer service who figured my unhappiness was my own fault, I quit their stupid online thing too. Netflix welcomed me back with open arms and a cookie, holding me as I wept over the jagged end to my embarassing relationship with their competitor.

Good riddance to blockbuster. They made me feel bad about myself - and I deserved better than that. Netflix loves me, and my kids can watch their movies via mail, on any computer, and even on our WII - as many as we want - whenever or wherever we want - with no late fees ever - for ten bucks a month.

LM

(never toy with my movie renting feelings)

Edited September 29, 2010 by Loudmouth_Mormon

[Just_A_Guy]

Netflix welcomed me back with open arms and a cookie, holding me as I wept over the jagged end to my embarassing relationship with their competitor.

[sniff].

That was beautiful, man. Welcome home.

[Dr T]

Wow! That is a lot of money.

[Guest]

This makes me sad! FunkyTown and I go to blockbusters all the time - netflix requires advanced planning rather than a 'what shall we do to night', and if he was here he'd give you his rant on the stupidity of people who download movies.

Hopefully they'll be staying open here in the UK :)

WHAT???? FUNKY GOT A GIRLFRIEND NOW???

Noooooooo! Funky, you can't leave me! I love you, man!

[Tarnished]

In the town we will be moving to they have a Family Video, and when you ask most locals about which they use more often Family Video or Redbox most say Family Video. That video store has gone out of its way to make itself more marketable in that town than the Redbox. Often you can get videos for cheaper from the Video store than you can from the Redbox.

That being said, I will say that the way Redbox and Netflix are running their business is very smart, I am not surprised at all to see the bigger video stores going out of business.

[pam]

[sniff].

That was beautiful, man. Welcome home.

I seriously bust out laughing.

[bytebear]

I read an article recently, where a former Blockbuster exec wanted to start these kiosks to rent videos from, but Blockbuster rejected the idea. So he started RedBox. But he had the intention of taking over Blockbuster at some point. Why? Because Blockbuster has an exclusive deal with movie distributors to get new releases, something that Netflix and the Redbox company cannot do, so Blockbuster always has movies first. But I guess they never capitalized on that fact. I can't find the article right now, and this is from memory, so if anyone else can find it, it would be an interesting read.

[Tarnished]

Wasn't there a blockbuster version of Redbox out for awhile, Bluebox or something of the like?

[john doe]

Here's hoping their predatory business practices cause them as much pain, frustration, and anger as they have caused me over the years. I hope their bankers use every excuse to charge them extra fees for every deadline missed, real or imaginary, just as they have done to their customers for decades. Blockbuster is one company that I giggle just a little bit inside every time I hear of something bad happening to them. Hollywood Video was a much easier company to deal with, and they trained their management to treat their customers with respect, something Blockbuster likely never even had a section for in their handbook.

[HoosierGuy]

Here's hoping their predatory business practices cause them as much pain, frustration, and anger as they have caused me over the years. I hope their bankers use every excuse to charge them extra fees for every deadline missed, real or imaginary, just as they have done to their customers for decades.

Sounds like you had a few bad experiences with Blockbuster. One reason I never rented much was because of that late fee threat. I much prefer Netflix, pay one fee and you can keep the disk as long as you want.

[miztrniceguy]

I decided to boycott Blockbuster many years ago because they would not let me buy a giftcard (for my Dad) because I did not have a membership. I went to Hollywood Video who gladly accepted my cash. Never went in another one again.

[Wingnut]

Because Blockbuster has an exclusive deal with movie distributors to get new releases, something that Netflix and the Redbox company cannot do,

Um, I've gotten new releases from Netflix the week they come out, so I'm guessing your information is either outdated or just plain wrong.

[ADoyle90815]

The Blockbuster closest to me also closed this summer, and I'm in southern California. The Hollywood Video store close to me has been closed for at least a year as well.

[Maureen]

I've been boycotting Blockbuster for years now. I find them unfriendly to customers and terrible record keepers. The Blockbuster store I went to would not let you rent unless you paid off your late charges in full and then not show that you paid in their records, asking for the same payment on the next visit. Or they would bill you (by mail) for late charges that you already paid. I dislike Blockbuster and am not unhappy about their situation.

M.

[PrinceofLight2000]

I've been boycotting Blockbuster for years now. I find them unfriendly to customers and terrible record keepers. The Blockbuster store I went to would not let you rent unless you paid off your late charges in full and then not show that you paid in their records, asking for the same payment on the next visit. Or they would bill you (by mail) for late charges that you already paid. I dislike Blockbuster and am not unhappy about their situation.

M.

Was this corporate, or just your store?

[Guest]

I read an article recently, where a former Blockbuster exec wanted to start these kiosks to rent videos from, but Blockbuster rejected the idea. So he started RedBox. But he had the intention of taking over Blockbuster at some point. Why? Because Blockbuster has an exclusive deal with movie distributors to get new releases, something that Netflix and the Redbox company cannot do, so Blockbuster always has movies first. But I guess they never capitalized on that fact. I can't find the article right now, and this is from memory, so if anyone else can find it, it would be an interesting read.

Um, I've gotten new releases from Netflix the week they come out, so I'm guessing your information is either outdated or just plain wrong.

Bytebear is correct and also not correct. Yes, Blockbuster has agreements with distributors but not ALL distributors.

Blockbuster has exclusive agreement with Weinstein Co to be the only ones to rent their videos - this was back in 2006. Some legal matter with the FCC made it illegal for exclusive agreements like these to happen (I'm not quite sure what exactly is the legal issue), therefore, you can still rent Weinstein Co videos someplace else but not within the first few weeks of release (can't remember exactly what number).

Early this year, Blockbuster signed an agreement with Warner Bros to receive their videos for release 28 days before it is released anywhere else.

In addition Blockbuster as Blockbuster Exclusive section that are movies made specifically for blockbuster. I loved that movie about this one guy trying to get a date with Drew Barrymore!

That said...

I like Blockbuster over Netflix. I had Netflix before. The reason - Blockbuster has more copies of new releases. I would reserve a copy from Netflix and put it in my queue and it won't get to me for weeks. Blockbuster always has a copy for me at the store if it's not processed on my queue yet.

I like the flexibility of going either to the store or online. Netflix got me mad a while back when they started mailing my movies later and later... We're a big-time movie family - we watch a video a day and go to the theaters every week! So, to have Netflix delay my videos is a big deal. With Blockbuster, if I don't want to wait for the mail, I can turn it in the store and get another one right then and there.

Also, Netflix charges more for BluRay. We are BluRay people.

Also, Blockbuster rents out video games.

My local Blockbuster knows us very well now that they ask us how are kids are doing, how soccer season is going, etc. etc. We're family now. Blockbuster is a part of our tradition.

So yeah, I'm very sad that Blockbuster is not doing well. But, I always believe that Chapter 11 is only going to make Blockbuster a better company.

[Wingnut]

In addition Blockbuster as Blockbuster Exclusive section that are movies made specifically for blockbuster. I loved that movie about this one guy trying to get a date with Drew Barrymore!

You mean My Date with Drew?

I get the rest of what you're saying though. It works for your family and your circumstances.