Blockbuster to close Dallas Distribution Center

[GaryPen]

Rumors of BD/DVD's death have been greatly exaggerated.

I've been hearing the same crap for years. Discs will eventually die. But, they ain't dead yet. And, no matter how hard companies try to speed up the process, it doesn't work. In fact, the rush to disc's wake backfired on Netflix in a big way.

 

[John Kotches]

Gary:

It will take time but it is somewhat inevitable. There's almost no CD business these days. Granted, music files tend to be significantly smaller than video which will be a factor in all of this.

BTW, streaming Netflix "HD" isn't that great for PQ.

 

[TheKrell]

B&M video rental overall is almost non-existent in our area. I can see where Dish had to stop the bleeding and close-down a lot of the existing B&M BBs to focus on streaming.

Which raises the following question. Is there any BB streaming still available these days? The only streaming I know about is BB@home on my Dish receivers. Maybe I'm missing something by ignoring DO which IMHO sucks due to the bastardized convolution with Sling streaming in the other direction. BB@home appears to have absolutely nothing to do with BB contracts, and everything to do with the linear (formerly Platinum) channels with agreements Dish had worked out previously.

 

[satjay]

No money to move them to a different location.

I do believe that in a few years you will see some new stores pop up.

A bit of a stupid question, if I am correct if you drop off a DVD at a blockbuster, you can't pick one up you get one in your que, it would be great if you could get so many in store exchanges

 

[HanoverPretzel]

Gary:

It will take time but it is somewhat inevitable. There's almost no CD business these days. Granted, music files tend to be significantly smaller than video which will be a factor in all of this.

BTW, streaming Netflix "HD" isn't that great for PQ.

I tend to agree with you. I think the trend in all major entertainment consumers is going to be to go to digital media that you download from the Internet, primarily. The first shoe to drop was music. Now books (Kindle, Nook, etc.) are starting to go over, and we're seeing the beginning of it with movies as well (Netflix, Apple, etc.).

Playing devil's advocate, though, the movie companies are being pretty restrictive in terms of what they allow to be streamed at an all-you-can-watch price, which is what the customers are used to with Netflix DVDs by mail. Netflix streaming doesn't offer nearly the selection, because they don't have the leverage of being able to say "If you won't sell us the rights, we'll go around you" the way they can with DVDs (In the past, sometimes they've just bought the DVDs from Wal-Mart and such and rented them out when disputes have arisen). So, that's something that could keep DVDs around longer. I'd love to get a little box and start streaming Netflix or Blockbuster, but the movie selection isn't good enough for it to be a good value to me. The DVD selection Netflix offers still is a good value, because they basically have everything (Minus a few obscure titles, and baring in mind that they usually don't get new stuff until a month or so after it's released on DVD). The Netflix streaming selection reminds me of the discount shelf late Saturday night at a video rental place after almost everything interesting has already been checked out by other customers.

 

[stardust3]

Here is the man who was responsible for Blockbusters success during its hayday, he got out when it was good. I had the opportunity of meeting him once by chance & it was an experience I'll never forget..........Wayne Huizenga - Wikipedia, the free encyclopedia

 

[Claude Greiner]

Technically they only need 1 distribution center, but the key to a successfull DVD by mail service is being able to provide a quick turn around when a customer sends back the DVD they finished watching.

When they build these distribution centers, they build them around the US Postal system. The closer the distribution center is to your home, the faster they get the DVD back, and the faster they can mail you another DVD in your list.

If you lived in the Dallas area for example, you probably see a 3 day turn around, as it takes a day to send the DVD to Blockbuster, a day to check it in, and a day to mail it back to you.

Now you close the distribution center, your going to add an extra few days and now its a 5 day turn around.

Not only do they save money by closing their distribution center, they now screw you out of rentals. Before on a 3 day turn around you could rent 10 DVD's every 30 days, now when you factor in that extra day you can rent maybe 6 DVD's per month.

Blockbuster has raised your rates, and you don't even realize it

 

[Coach Knight]

A bit of a stupid question, if I am correct if you drop off a DVD at a blockbuster, you can't pick one up you get one in your que, it would be great if you could get so many in store exchanges

You can, sort of. They have an in-store plan that you can continually exchange a disc in store (not the mailed disc, this is a separate plan) as many times a month as you can do it. Basically if you could watch 5 or 6 movies a day there is no limit that I am aware of on this plan.

 

[Laddyboy]

A bit of a stupid question, if I am correct if you drop off a DVD at a blockbuster, you can't pick one up you get one in your que, it would be great if you could get so many in store exchanges

I'm not sure of your question, but you can exchange a DVD you received by mail for one at the BB store. When you return the store DVD a slot opens in your by-mail queue.

 

[wilme2]

You never know how dumb some leasing companies are, but I really doubt rent would have been an issue.

They hate to write-down/reduce rent, even when the only alternative is losing their renter and the space sitting empty. They knew BB, being in bankrupcty, could terminate the lease if they wanted, but the landlord likely refused to reduce rent, and the store closes down. Many people don't understand bankrupcty or its role, and hence can't fathom BB was losing money at their location... (Have lived it twice at two different companies, all the way in and then back out both times...)

 

[GaryPen]

Gary:

It will take time but it is somewhat inevitable. ...

Yes. It will take time. That was my point.

I tend to agree with you. I think the trend in all major entertainment consumers is going to be to go to digital media that you download from the Internet, primarily. The first shoe to drop was music. Now books (Kindle, Nook, etc.) are starting to go over, and we're seeing the beginning of it with movies as well (Netflix, Apple, etc.).

Music was first because it was the easiest to download. Also, music already needed hardware to enjoy it. Paper books do not. So, they will take longer to die, and will probably hang on in some limited way for quite some time.

Along those same lines, until they figure out a way for HQ video to stream at lower bandwidth, or bring broadband to everybody, there will continue to be a market for hard copy video, as many people simply do not have access to streaming video. Also, people will not want to pay the prices the studios think they can squeeze us for viewing their crap. They tried it during the 80's when they first started releasing movies on VHS and Beta. They soon learned that people would not pay $89 to own Porky's II. They tried it again with DVD's, and learned that people didn't wanna pay $30 either. At some point, they'll realize it with BD, too. (Although, they have acquiesced somewhat.)

Bottom line is that the content and technology providers, as hard as they continually try, can't force stuff down the throat of the marketplace, if the marketplace clamps their jaws shut. They can have small successes, but not enough to support the entire industry.

 

[jerryez]

A bit of a stupid question, if I am correct if you drop off a DVD at a blockbuster, you can't pick one up you get one in your que, it would be great if you could get so many in store exchanges

You get a disc in the mail, return it to the store and your online queue will show the store movie as your current disc. When you return it to the store, your online queue will show empty and you next disc will ship. Each one mailed can be exchanged for a store disc in your queue or not, but you are only allowed one store disc for each mailed disc you receive.

 

[satjay]

You get a disc in the mail, return it to the store and your online queue will show the store movie as your current disc. When you return it to the store, your online queue will show empty and you next disc will ship. Each one mailed can be exchanged for a store disc in your queue or not, but you are only allowed one store disc for each mailed disc you receive.

Ok thanks for the explaining I always thought with the dish/blockbuster plan no in store exchanges were allowed

 

[Bodo Fenrirsson]

My BB Blu-ray discs come from Charlotte,NC.

 

[fuzzy]

mine come from Richmond,va.

 

[navychop]

Mine came from Richmond.

No limit on how long we take to watch one, right?

 

[TheKrell]

Right. Even for the trades.

 

[kappy44]

Mine come from Phoenix....the last was two weeks ago...they now can't deliver any of the 18 in my queue, but that's another mis-managment story!

mine come from Richmond,va.

 

[JM42]

They hate to write-down/reduce rent, even when the only alternative is losing their renter and the space sitting empty. They knew BB, being in bankrupcty, could terminate the lease if they wanted, but the landlord likely refused to reduce rent, and the store closes down. Many people don't understand bankrupcty or its role, and hence can't fathom BB was losing money at their location... (Have lived it twice at two different companies, all the way in and then back out both times...)

Been on both sides of bankruptcy A&M scenarios myself. I know other space in the center is very reasonably priced - looked at opening a branch office in the same strip so I could be closer to home a couple nights a week. The other tenants probably looked at the Blockbuster was a semi-anchor, it was that busy. The owners may have been very shortsighted, but if they offered a deal even close to what they offer new tenants then BB could not have gotten a much better deal in the area.

I stand by the claim that if that location was not profitable, brick and mortar has no future. But, it is entirely possible that location was just fine, but they are eventually pulling out of Atlanta all together or had some other encumberance.

 

[HanoverPretzel]

You get a disc in the mail, return it to the store and your online queue will show the store movie as your current disc. When you return it to the store, your online queue will show empty and you next disc will ship. Each one mailed can be exchanged for a store disc in your queue or not, but you are only allowed one store disc for each mailed disc you receive.

That sounds like a strong advantage over Netflix if you can find a local Blockbuster store. Problem is, a lot of people can't anymore. There used to be one in the town where I live, and it's gone. There used to be two in a town my parents live in and I frequently visit, and they're both gone. I don't know where I'd find a Blockbuster now. Might be an hour's drive or more. So it no longer really works in real life for a lot of us.

It'll be interesting to see if Blockbuster is serious about adding new locations again in places where they can get cheap rent. I suspect that they are going to let the brick and mortar side of their business mostly disappear- just keeping stores where they are still profitable, and maybe like having one or two in most big cities and nothing outside of that. Kind of a specialty thing, like a vinyl record store is these days. Or even let it disappear completely. But I've been wrong before, and could be again. No one can know for sure how these things will pan out.

I can just remember the last time I walked into a Blockbuster (before the local one closed) really intending to rent a movie and liking the nostalgia of being there, but not walking out with anything. I found that with most of the new releases I could get them at a Redbox or (ironically) a Blockbuster kiosk for $1 and Blockbuster the store wanted like $4 or $5, so, being budget conscious, I obviously wasn't going to get a new release at the store. So, I figured, hey, I'll check out the back catalog, which will be cheaper, and have some favorites that a Redbox wouldn't have room to stock- and was surprised to find that they didn't have much of a back catalog in stores, not even a lot of the really big hits and cult classics from the last couple decades.

It's kind of a shame. I remember having fun going to rent videos with my parents when I was a kid. But everything has a time and a season. Technology changes and eras pass. And often the new is better than the old.

I'm mostly a Netflix (DVD) guy now. I get my pick from almost any DVD in the world that I want and then can either watch it quick and return it and get another for no additional fee, or let it sit for a while and not pay any late fees. Just knowing I play a low fixed price for what I want and will never have to pay a late fee or return a movie unwatched is a huge deal for me. And being able to have my pick of movies shipped to my door is big. Blockbuster by mail I'd imagine is similar. One pet peeve I always had with renting movies was late fees that piled up, often beyond what I could really afford, and not having to deal with that makes the whole experience a zillion times better. And you don't have to try to rush to watch something if you don't feel in the mood to watch it. It's like all the pressure is gone and you can just enjoy stuff.