AfterDawn: Tech news

Blockbuster blames piracy for closed stores

Written by Dave Horvath @ 04 Jan 2007 6:24 User comments (26)

Blockbuster blames piracy for closed stores Movie rental giant Blockbuster announced that it has officially closed its last store in Peru. Faced with slumping sales and a continuing loss of a customer base forced the rental outlet to close the doors of all stores within the country of Peru. Just two years ago, El Comercio said Video International Peru operated some 12 Blockbuster franchises. Now there are none.
A Blockbuster representative stated that piracy can be blamed as the biggest factor in the closing. In a part of the world where pirated DVDs can be purchased on the corner for $1 instead of rented at Blockbuster for easily double the price, its no wonder they closed down. Blockbuster executives confirmed that their Peruvian presence is gone and they have no plans in the future for additional developments within the country.


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26 user comments

14.1.2007 7:25

seems like some more of the idiotic marketing of media companies. Knowing the costs and saturation of the pirated media Blockbuster shouldn't have thought that charging more for a RENTAL would be a winning game plan! They should have gone down there and charged 50 cents for a rental or a quarter! Then people would have come into their stores! Would they have made as much money.. well they would have obviously made MORE THAN THEY DID renting none!

24.1.2007 7:56

there are no cd stores or movie stores in any of the malls around me now (northern nj), back in the day there use to be TWO "walls" in my local mall. i hate to admit it but every time i see a cd or movie store close it literally makes me smile. it reminds me of how much power the consumer now has over what they hear and see.

34.1.2007 11:27

I also find this to be the power of the people. But would it not be better to be able to get the legit version with everything rent it make a back up and give it back :) I like that idea than buying a crappy version from the corner or off the net.

44.1.2007 12:14

I am a BlockBuster user who hasnīt rented a movie for a while, not because of piracy but because Hollywood hasnīt produced a movie worth watching...

54.1.2007 13:16

tefarko wrote, "not because of piracy but because Hollywood hasnīt produced a movie worth watching" I totally agree with you there. I have a Blockbuster movie pass, "3 out at a time from store", unlimitted monthly rentals. I pick up just about everything that comes out each week. Many of those I end up shutting off before they are halfway into the movie. Movies nowadays just don't seem to be very satisfying. Most of them just seem to be a waste of your time. I watched, "The Covenant" this week and it was an okay movie. It just didn't wrap up in a way that was fulfilling. It's a movie that I would not watch again, as is the case with most as of late. They either flat out suck or are just okay. One thing that I have been noticing, they play a real good, upbeat soundtrack, through many various action scenes in the previews of movies. But when you get the movie that soundtrack isn't in any of those action scenes. For me the soundtrack is almost 1/2 the movie. Two examples: "Ultraviolet" and "The Covenant".

64.1.2007 16:05

Well, let see 6 dollars for a crappy movie at Blockbuster or 3 dollars for the same crappy movie at any corner store. Decision, decision..... This is why I did not rent a sole movie at Blockbuster for more than a year but several dozens at the corner store during the same year. This is not marketing, it is just common sense even without piracy.

74.1.2007 18:33

Blockbuster sucks because of their rental times were only like two days and their prices sucked on rentals.After I rented there and had my movie for two days with a late fee, I stopped going to blockbuster and never been happier.

84.1.2007 19:05

Here's a novel idea. Stop opening stores in third world countries where people can't afford a membership in the first place. Or is that too "out there?"

94.1.2007 20:23

i stoped using blockbuster because when they started advertising there no late fee bull then charge your credit card for the full price of the dvd if the dvd isn't returned in time no late fees my ^&%^^& hollywood video is better cheaper and has great deals even on used video games i can purchase 4 xbox gams for 20.00 and no im not talking cheap junk ones eaither where blockbuster charges 39.99 for just one of my 4 titles what a ripp off

105.1.2007 9:24

anyway you slice it, 4.75 for a rental is f#cking bullsh!t. bring it down to 2 and ill start thinking about renting movies again (but only so i can copy them and get all the extra goodies). i mean why even spend money? torrentbox has like every movie ever made on dvdrip, so does gnutella2. just select some movies to watch before you go to work and by the time you get home theyll be done. do you realy care about the specialy fetures? if you like the movie then rent it for 4.75 and copy the disk, if you think its worth 4.75.

115.1.2007 10:08

oh i feel so bad for them. "NOT" screw them......... don't like supporting the big guys anyway!!!

125.1.2007 11:00

Hahahahaha!!! Was just reading the comments...personally, I don't like using them any way. Hell, even where I live, there are more "privately" owned rental places where you can get a movie for $1. It is no wonder we have just 1 Blockbuster, and like 10 other movie places. It's cool though, don't rent anyways, seem s like a waste of time, unless you are trying to get a game.

Here's a novel idea. Stop opening stores in third world countries where people can't afford a membership in the first place. Or is that too "out there?"
Laughed out my chair when I read that one...

136.1.2007 15:00

I agree the prices are to high.

146.1.2007 16:13

I haven't rented from Blockbuster since the Red Box came out. I can go online, reserve my movie and pick it up. Best of all it's only 1 dollar. 3.99 or a buck for the same movie? You decide.

156.1.2007 16:17

What is Red Box?

167.1.2007 3:35

i totally agree with everyone here. if big rental companieis made it cheaper to rent then why would we need to buy copies or wait 3 months an the orig dvd is cheaper to buy anyway. Maybe if they stopped tryin to line their pockets an look at what the customer wants they'd do a helluva lot better trade.

177.1.2007 5:28

The cost for a movie rental from Blockbusters is ridiculous !!!!! I rent at the local store for $1.98. The local store have to have a dual business to survive. Lets see the online subscribes is now at 2 million !!!!! It appears people are looking for convenience and better prices from their online store. I hope Nextflix hangs in there !!! If Netflix goes then Blockbusters will screw people again !!!!

187.1.2007 6:47

'Course the rise of satellite TV with pay-per-view for 3mth old movies has nothing to do with this at all, right?!

It's just more propaganda for the shallow thinking and gullible.

197.1.2007 16:21

I still rent movies on somewhat on and off or as time permits.We had Blockbuster here but it didnt do well and it closed up and left.The old store didnt stay empty long as Hollywood video soon moved in.They have done well and are still doing well or at least there still there as I write this.Their specials and promotions have helped them to surrive.We have a new video store here now that i really like a great deal and find their store and videos a great deal.The new store is Family Video and it does really well and is starting to pass Hollywood up from the number of people that I see in Family Video is like 4 to 1 compared to HollyWood Video.They offer some good deals childrens videos are free as fitness and educational videos.They have half price videos and games as an offer when you join also at anytime you can have it prolonged from month to month for a few extra bucks.I think if these video stores are going to make it in these times I think this store is going in the right direction to keep the custumer happy or least a dam good try.I do know where I will continue to do my shopping or rentals.

209.1.2007 4:36

it doesnt matter whos store u walk into i would be lucky to find 2 or 3 movies i would bother watching same goes for music, the crap hollywierd churns out isnt worth paying for even tv is one bloody american after another .

219.1.2007 5:30

I don't rent anything.. The situation where I live is this. The nearest blockbuster is miles away, the staff are surly teenagers, usually with a gang of "mates" hanging around in the shop. They never have the film I want, and the rest of the selection is either old, or tv shows I have no interest in. Any time I managed to rent anything it was dirty/damaged, including the games.
They lose..I win..

229.1.2007 7:57

First of all, the idea of stop opening stores in third world countries where people can't afford a membership in the first place, is incorrent since most of the time they offer you memberships for free... therefore that's not the problem. Even so Blockbuster offers you at least once a week rentals for a $1, this doesn't compensate the trouble you face when rushing to return the movie in time (to avoid paying late fees at full price) nor renting dirty/scratched discs due to poor maintance, that don't allow you to enjoy the movie satisfactory, and could damage your player (which of course Blockbuster will never offer paying for the repairs) Blockbuster's policy of high rental prices, rental times, late fees and poor maintance is the main reason. And don't forget that the dropping in rentals and audience in movie theaters, is because in the past years Hollywood hasnīt produced excellent movies worth watching (or renting)

2312.1.2007 22:16

Blockbuster...inflated pricing model, BAD customer service, and penalties up the ying yang. GOOD riddance. My respect for the country of Peru increased 500% after reading this story. Way to go.

2416.1.2007 0:55

I dont have a video store near to where I live now. My nearest is a Blockbuster store, 3 miles away. I dont drive so it would cost me Ģ3.20 return on the bus, plus 3 for Ģ10 rip-off charge it is currently to rent 3 movies for 2 nights so add another Ģ3.20 to return the damn things, and I am currently at Ģ16.40 to watch 6 hours of movies!! Choices have to be made, and mine is not to get my movies from Blockbuster, and obtain them elsewhere. I dont think I am harming any industry if I buy 3 copies for a fiver down the pub. I still go to the movies occasionally, and I also still buy DVD's, but I am a lot more selective now as to my purchases. If Hollywood paid their stars less (How much did Bruce Willis get paid for Die Hard 4?? $30mil) and made films cheaper to buy when on DVD, then maybe the balance would be better.

2516.1.2007 1:30

How a Blockbuster store expects to make $ now? When you can use their online service and return movies at the store for new ones in store for a low monthly fee compared to actually renting in store.. The online service gets the $ and when you return and rent the actual store isn't making any $ .. So it's no wonder some stores are closing

2627.1.2007 23:21

Gas costs so much money in Europe (it's currently $2.20 here in the U.S.) & other countries I understand why they are staying home. Blaming P2P for everything is stupid & short-sighted. Someone needs to slap Blockbuster for making these kind of stupid comments.... Oh wait, someone already did 12 times LOL

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