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Blockbuster is saving money but losing subscribers

4 October 2007 6:06 by Rich "vurbal" Fiscus | 65 comments

Blockbuster is saving money but losing subscribers Blockbuster is expected to announce a loss of subscribers during the third quarter of this year. The drop comes as their chief rival among brick and mortar video rental chains, Movie Gallery, has been faltering and may file for bankruptcy soon.

Over the last few years, online DVD rental pioneer Netflix has been steadily growing at the expense of traditional rental outlets. Last year Blockbuster unveiled a new online rental program of their own, dubbed Total Access, intended to be the first to actually give Netflix some real competition. One of the selling points for Total Access is an option to return movies to brick and mortar stores, allowing faster receipt and shipment of additional movies.

This strategy seemed to be paying off as the program gained momentum last year, and earlier this year even resulted in a net loss of customers for Netflix, the first time that's happened since that company's inception in the late 1990s. However, despite subscriber gains, corporate losses led Blockbuster's recently hired CEO to cut back on in-store returns from the program, only permitting a Limited number, depending on the plan you select. At the same time, Netflix has added Streaming movies and lowered prices.

Although Blockbuster executives assured stockholders that their cost cutting measures wouldn't have an impact on subscriber growth, that doesn't appear to be the case. Perhaps a better question is whether the window for competing with the online giant is closing. Blockbuster should carefully consider their next step unless they want to become just a footnote in the history of Netflix.

Source: Reuters

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    Discuss this article!  There are more user comments available, read them here
    DRGULA (Newbie) 5 October 2007 7:36 Send private message to this user   
    Quote:
    Originally posted by DRGULA:
    I do have the "8 out at a time" service, and I average 16 a week. Whether you believe me is irrelevant, I just stated the fact. The only times I don't get 16 a week is when a holiday interupts the mail. I have tried other services and have been throttled and refused service by them, but Netflix has never given me a problem.
    They you aqre a lucky bastard or you work for them or know someone within the compaqny and according to Netflix policy if you did rent that many DVD's as you say you did you would be throttled according to their terms as stated to me by them.... I see a nose growing guys LOL>
    Whatever, there is no way to prove either way. I know what I get, I don't work for them so maybe I'm the lucky one. This week I've already had 10 movies and I'm waiting on 1 today and 7 tomorrow. My list of movies I've rented, printed out, fills 33 pages and I keep my Q at 499.
    DRGULA (Newbie) 5 October 2007 7:40 Send private message to this user   
    Quote:
    Not yet, but I'll give them a look.

    I've got my own theater room and I wanted to replace all my video tapes with dvd versions. I use Movie Collector to keep track of all my movies. At present I have over 3500 titles, thats including tv series, anime and some old classics. I've got a lot of original japanese titles (they are always better with sub titles), like Zatoichi and Gojira (Godzilla). I've always been a film buff and I've worked in the movie/music industry(IT - MIS)for many years. If you think my movie collection is huge, you should see my music collection.
    I hate subtitles to much work for the brain to process LOL and the subtitles on some of them are so bad.... We have fun and make up our own dialog for those types of movies. LOL. WHere do you get the Jap movies from?
    Mostly from Netscape but a few I've searched around and found at other site.

    I also do the "Mystery Science Theatre" routine, but I'm trying to learn japanese so I can watch all my Gojira movies as they were originally meant to be seen.
    duke8888 (Junior Member) 5 October 2007 8:53 Send private message to this user   
    Quote:
    Quote:
    Originally posted by DRGULA:
    I do have the "8 out at a time" service, and I average 16 a week. Whether you believe me is irrelevant, I just stated the fact. The only times I don't get 16 a week is when a holiday interupts the mail. I have tried other services and have been throttled and refused service by them, but Netflix has never given me a problem.
    They you aqre a lucky bastard or you work for them or know someone within the compaqny and according to Netflix policy if you did rent that many DVD's as you say you did you would be throttled according to their terms as stated to me by them.... I see a nose growing guys LOL>
    Whatever, there is no way to prove either way. I know what I get, I don't work for them so maybe I'm the lucky one. This week I've already had 10 movies and I'm waiting on 1 today and 7 tomorrow. My list of movies I've rented, printed out, fills 33 pages and I keep my Q at 499.
    I was on Netflixs 8 at a time and they throttled me after 4 months the pricks so I canceled after they said they have the rights to handle high volume users in the way they see fit.
    Rolling_S (Newbie) 5 October 2007 11:01 Send private message to this user   
    I'm suprised they're still in business. It's like all the BB around me have closed.
    robtwilk (Member) 5 October 2007 11:53 Send private message to this user   
    It sure sounds like a few people on this thread are openly admitting they are copying rented DVDs. You would have a hard time convincing anyone you watch that many movies in one day.

    I would throttle you too if I thought you were copying rentals.

    I rent from both and I know BB throttles the in-store returns. I even sent them an email stating so. They were sending out a new DVD shortly after getting yours at the store - now they wait a day or two.

    I own over 1,000 DVDs and a bunch of Blu-Ray and HD-DVD (bought over the last 8 years). I know my bank account is suffering because of my hobby. How the heck does anyone own 20,000 DVDs?
    duke8888 (Junior Member) 5 October 2007 13:56 Send private message to this user   
    Originally posted by robtwilk:
    It sure sounds like a few people on this thread are openly admitting they are copying rented DVDs. You would have a hard time convincing anyone you watch that many movies in one day.

    I would throttle you too if I thought you were copying rentals.

    I rent from both and I know BB throttles the in-store returns. I even sent them an email stating so. They were sending out a new DVD shortly after getting yours at the store - now they wait a day or two.

    I own over 1,000 DVDs and a bunch of Blu-Ray and HD-DVD (bought over the last 8 years). I know my bank account is suffering because of my hobby. How the heck does anyone own 20,000 DVDs?

    I know a guy with over 40,000 in his collection. Remember P2P people get tons of movies without the hasle of rentals or buying them why dou you think hollywood and the feds are hot about the P2P systems?
    duke8888 (Junior Member) 5 October 2007 14:05 Send private message to this user   
    Originally posted by robtwilk:
    It sure sounds like a few people on this thread are openly admitting they are copying rented DVDs. You would have a hard time convincing anyone you watch that many movies in one day.

    I would throttle you too if I thought you were copying rentals.

    I rent from both and I know BB throttles the in-store returns. I even sent them an email stating so. They were sending out a new DVD shortly after getting yours at the store - now they wait a day or two.

    I own over 1,000 DVDs and a bunch of Blu-Ray and HD-DVD (bought over the last 8 years). I know my bank account is suffering because of my hobby. How the heck does anyone own 20,000 DVDs?
    I don't see where anyone is admitting that, and don't tell me you never copy a dvd in your life otherwise why would you be on this website? Don't say for the articles. LOL>
    FredBun (Senior Member) 6 October 2007 20:42 Send private message to this user   
    DRGULA, this movie collector sounds intersting, how does it work and where can one get it.
    DRGULA (Newbie) 6 October 2007 21:29 Send private message to this user   
    Originally posted by FredBun:
    DRGULA, this movie collector sounds intersting, how does it work and where can one get it.
    www.collectorz.com

    You enter the names of the movies and then select which databases to search online and it goes out and downloads all the info and the cover art. It's really nice, you can set it up anyway you want and print out in different formats.
    FredBun (Senior Member) 6 October 2007 21:59 Send private message to this user   
    thanks
    duke8888 (Junior Member) 7 October 2007 5:57 Send private message to this user   
    Quote:
    Originally posted by FredBun:
    DRGULA, this movie collector sounds intersting, how does it work and where can one get it.
    www.collectorz.com

    You enter the names of the movies and then select which databases to search online and it goes out and downloads all the info and the cover art. It's really nice, you can set it up anyway you want and print out in different formats.
    Yes I am registered customer for that software it is great....
    duke8888 (Junior Member) 7 October 2007 6:05 Send private message to this user   
    Quote:
    Originally posted by FredBun:
    DRGULA, this movie collector sounds intersting, how does it work and where can one get it.
    www.collectorz.com

    You enter the names of the movies and then select which databases to search online and it goes out and downloads all the info and the cover art. It's really nice, you can set it up anyway you want and print out in different formats.
    I wish that they would have an option to print out covers that would be neat.
    FredBun (Senior Member) 8 October 2007 7:33 Send private message to this user   
    just go to ccovers.com, you can print out all the covers you want, its free and a great site.
    FredBun (Senior Member) 8 October 2007 7:34 Send private message to this user   
    sorry, I mispelled, its cdcovers.com
    FredBun (Senior Member) 8 October 2007 7:36 Send private message to this user   
    screwed it up again, sorry, its http://www.cdcovers.cc/
    DRGULA (Newbie) 8 October 2007 7:52 Send private message to this user   
    Originally posted by FredBun:
    screwed it up again, sorry, its http://www.cdcovers.cc/


    Another site is http://www.dvdempire.com/
    duke8888 (Junior Member) 8 October 2007 8:04 Send private message to this user   
    Originally posted by FredBun:
    just go to ccovers.com, you can print out all the covers you want, its free and a great site.
    Yes I use them quite often.
    robtwilk (Member) 9 October 2007 21:22 Send private message to this user   
    Quote:
    Originally posted by robtwilk:
    It sure sounds like a few people on this thread are openly admitting they are copying rented DVDs. You would have a hard time convincing anyone you watch that many movies in one day.

    I would throttle you too if I thought you were copying rentals.

    I rent from both and I know BB throttles the in-store returns. I even sent them an email stating so. They were sending out a new DVD shortly after getting yours at the store - now they wait a day or two.

    I own over 1,000 DVDs and a bunch of Blu-Ray and HD-DVD (bought over the last 8 years). I know my bank account is suffering because of my hobby. How the heck does anyone own 20,000 DVDs?
    I don't see where anyone is admitting that, and don't tell me you never copy a dvd in your life otherwise why would you be on this website? Don't say for the articles. LOL>
    Actually it's for the humor I get from people's comments. Of course I have copied DVDs in my life. I own several versions of DVDXCopy that I bought at Fry's (legally). I made backups of movies I own, NOT rent.

    This thread is about Blockbuster. People are admitting they are copying movies they rent. No-one is renting 8 movies at a timne and returning them the next day, renting 8 more and repeating the process. They are either copying the rentals or testing the U.S. Post Office's efficiency. Which one do you think it is?

    I have a home theater and two kids - we watch about 3-4 DVDs a week from BB or Netflix, then return them. When I want a really good movie I BUY it from Amazon.
    robtwilk (Member) 9 October 2007 21:24 Send private message to this user   
    Quote:
    Quote:
    Originally posted by FredBun:
    DRGULA, this movie collector sounds intersting, how does it work and where can one get it.
    www.collectorz.com

    You enter the names of the movies and then select which databases to search online and it goes out and downloads all the info and the cover art. It's really nice, you can set it up anyway you want and print out in different formats.
    I wish that they would have an option to print out covers that would be neat.
    I use DVD Profiler and find it the best out there for my DVD collection. It now lets you print DVD cover inserts. The latest version has been really improved.
    Cornholeo (Newbie) 10 October 2007 0:34 Send private message to this user   
    I subscribe to BOTH, as each has it's own peaks and valleys, mostly due to slow mailings and cracked and broken discs from each. I think
    Quote:
    BUSTER
    is cutting it's own nose by reducing the number of IN-STORE return rentals, yet INCREASING the price for the SAME amount of online rentals. where's the logic in this, other than to gain a BIGGER profit margin? Didn't they realise most subscribers would bring in the discs to maximize the rate of rentals versus bulk mailings(DUH !),which drastically reduces damage from the postal service? And
    Quote:
    NETTY
    is no better, as they claim to have huge disribution centers within proximity of the subscriber, yet I receive some of my movies as far as MINNESOTA, and I live in the DIRTY SOUTH!!!.that 2-3 day turnaround,coupled with the 2 day weekend, means I can only receive 2 rentals on a given week, unless of course I send them back unwatched along with the usual BROKEN or STRATCHEDdiscs I usually get at least once a week! Maybe that's what weve come to expect of them....But the ONE THINGthey do get right is the REMOVAL of the fees from your BANK ACCOUNT each month.
    DRGULA (Newbie) 10 October 2007 5:50 Send private message to this user   
    Quote:
    Actually it's for the humor I get from people's comments. Of course I have copied DVDs in my life. I own several versions of DVDXCopy that I bought at Fry's (legally). I made backups of movies I own, NOT rent.

    This thread is about Blockbuster. People are admitting they are copying movies they rent. No-one is renting 8 movies at a timne and returning them the next day, renting 8 more and repeating the process. They are either copying the rentals or testing the U.S. Post Office's efficiency. Which one do you think it is?

    I have a home theater and two kids - we watch about 3-4 DVDs a week from BB or Netflix, then return them. When I want a really good movie I BUY it from Amazon.
    I feel that if I own the movie on video, then I own the movie. As for the amount of movies I rent, with the garbage that is on TV what else is there to do?
    robtwilk (Member) 10 October 2007 9:47 Send private message to this user   
    Quote:
    Quote:
    Actually it's for the humor I get from people's comments. Of course I have copied DVDs in my life. I own several versions of DVDXCopy that I bought at Fry's (legally). I made backups of movies I own, NOT rent.

    This thread is about Blockbuster. People are admitting they are copying movies they rent. No-one is renting 8 movies at a timne and returning them the next day, renting 8 more and repeating the process. They are either copying the rentals or testing the U.S. Post Office's efficiency. Which one do you think it is?

    I have a home theater and two kids - we watch about 3-4 DVDs a week from BB or Netflix, then return them. When I want a really good movie I BUY it from Amazon.
    I feel that if I own the movie on video, then I own the movie. As for the amount of movies I rent, with the garbage that is on TV what else is there to do?
    That is the fundemental arguement - many members of this website and others that support this topic feel that we are buying the movie, not the medium it comes on. The establishment wants to stop it because of pirating, but I don't believe they really care if we make a backup of our own movies. They only care that if they make copying wrong for everyone, then they have protected themselves against pirating.

    My kids have ruined more DVDs and Console games than I care to remember. It's not fair the medium is so fragile.

    Back on topic: BB and Netflix should at least use stronger packaging - which might reduce the damage to their DVDs. I too have received scratched and broken DVDs that won't play.
    FredBun (Senior Member) 10 October 2007 13:44 Send private message to this user   
    ditto robtwilk
    borhan9 (AfterDawn Addict) 11 October 2007 1:53 Send private message to this user   
    If this is the case then the only way they will make a profit is to increase prices.
    WierdName (Senior Member) 11 October 2007 11:15 Send private message to this user   
    In response to robtwilk-
    Agreed. I feel that whenever I buy any disc/disk with software, music, movie, programs, etc. I own it. I paid for that particular copy of the software that I can copy for my OWN purposes. As long as I don't give out my copies, I have every right copy the software that I paid for. If I was just paying for the medium the software comes on, I would just save myself the money and trouble and just go buy a new blank disc/disk. I'm not because I'm buying the software, not the medium.
    DRGULA (Newbie) 11 October 2007 17:43 Send private message to this user   
    Originally posted by borhan9:
    If this is the case then the only way they will make a profit is to increase prices.

    Don't believe everything the music/movie industries tell you. I worked for many years in the music/movie industry, working for one of the top companies (I won't name them but they have a rabbit for a icon) and they make a lot on each disc. It's the music artist that gets hosed, by the production company.

    If you remember (I may be dating myself), but they claimed cassettes would destroy the music industry. Didn't do it, did it. Even Metalica admits to copying their friends cassettes when they were younger, but don't like it when it is done to them ........ Hypocrisy at it's finest!
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