the blog manifesto.

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barnaby jones

Saturday, April 10, 2010

The decline of Blockbuster Video

Dear Blockbuster,

This advertisement states:
1. Blockbuster has stores; Netflix and Red Box do not. This statement is true.
2. Blockbuster has By mail service; Netflix and Red Box do not. This is a lie.
3. Blockbuster has on demand; Netflix and Red Box do not. This is also a lie.
This advertisement contains 33% truth.

Blockbuster Vs Red Box

Red Box is hardly a direct competitor with blockbuster. The Red Box business model is so advance, competition between the two resembles a Battle between a

and this F-150 pickup truck

Redbox simply gives more options with less business girth to drag around.

The real "competition" is between Blockbuster and Netflix.
Redbox only deals with new releases in less volume for less money. Netflix deals in high volumes of old and new movies like Blockbuster.
Netflix has Online on demand streaming

as well as by mail rentals.

Blockbuster is working hard to combat the convenience of Netflix by forming alliances with the copyright owners of major movies. They do this to keep afloat their archaic business model. By keeping their stores open blockbuster is choosing a slow painful death.
I propose blockbuster close all their stores, use the money from closing those stores to help pay off their huge debt, give me a large severance check (Lol @ me not getting a raise after 2 years of working for them), file bankruptcy, and create the most efficient simple online steaming business. This new business will rise like a phoenix; with a nation of convenience crazed people holding them in highest regard.

Something needs to change, because this is what the current strategy is doing for blockbuster

a slow and painful decline
Blockbuster has turned into a chain of yelling. Corporate yells at the Regional Managers, who yell at the district managers, who yell at the store managers, who yell at the shift leads, who yell at the customer service representatives. The basic yell is "Why are we not making money!!" but it comes down the chain to me as "Pressure these people to buy more stuff!!!" "Make them Pre-Order more Movies!!!" "Trick them into thinking they are saving money!!!" "Smile more when you lie to them : )"
Now this is mildly annoying for me, so I just ignore the yelling. But for many people who need their Jobs it is very painful and frustrating.
Some fun facts:
1 Share of Blockbuster stock is worth 29 cents.
1 Share of Netflix stock is worth 82 dollars and 49 cents
It costs 13 shares of Blockbuster stock to rent a movie at Blockbuster.

a Blockbuster CSR

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