Blockbuster: Celebrating 10 Years Of No Broadband StrategyVideo giant lacks vision, and it shows... 06:26PM Thursday Jul 16 2009 by Karl Bodetags: Video · competition · business · alternativesIt has been interesting watching Blockbuster video adapt to the broadband age, with the company seemingly interested in not trying very hard out of fear of cannibalizing their brick and mortar revenue. Early efforts to mirror Netflix's success at broadband video delivery have seemed relatively lackluster, with the company's CEO almost expecting failure. There's a great post over at The Business Of Video that explores Blockbuster's ten-year history of proclaiming they're going to be a leader in the broadband video space -- without actually doing much of anything to support that assertion: What are we seriously suppose to think when Blockbuster says, "Right now, we are the leader in the rental video business in the U.S. To the extent that the industry moves more digital, we plan to stay the leader. We know consumers are requiring more from us and we have no wish to lose our leadership." Leadership? Based on what? Yes, broadband video delivery is still in its infancy, but it's a market that's going to quickly explode with the proliferation of next-generation broadband, and Blockbuster's shown all the symptoms of a company that's not going to adapt well. Like many companies faced with broadband evolution, the company seems more worried about protecting dying business models than exploring new ones.
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD |  Broadband Not The Threat
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Blagojevich / Madoff 2012! | |
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S_engineer
join:2007-05-16
Chicago, IL
 ·Comcast
| Re: Broadband Not The Threat I agree, but people in my neck of the woods still bring their families to pick out a flick. Theres still a certain stigma about shopping at a phonebooth. I could just as easily watch HD VOD from Comcast, but that would render a portion of my theater system useless, so I'll do both for awhile.
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BF69~~~Please stop suffocating gerbils! | |
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast
| Re: Broadband Not The Threat said by S_engineer  :I could just as easily watch HD VOD from Comcast, but that would render a portion of my theater system useless, so I'll do both for awhile. I'd love to watch On-Demand with Comcast, but the UI is so slow that it is useless. It shouldn't take more than a few seconds for it to load. I have to make sure I never press the "On Demand" button on the remote lest I wait a few minutes before I can change the channel. Ugh.
When I did feel like waiting for On-Demand, I found that Comcast never reset out box and we are still asked for a PIN in order to watch anything. 2 calls to Comcast didn't resolve the issue, so I pretty much let it slide since On-Demand is too slow to be useful anyway.
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Blagojevich / Madoff 2012! | |
| | | | jhrollins
join:2008-01-18
Midlothian, VA | Re: Broadband Not The Threat Feel your pain. Luckily, Fios cured me of it. | |
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast
| Re: Broadband Not The Threat said by jhrollins :Feel your pain. Luckily, Fios cured me of it. Someday perhaps. 
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Blagojevich / Madoff 2012! | |
| | | | NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
 ·Pacific Bell - SBC
| said by pnh102 :I'd love to watch On-Demand with Comcast, but the UI is so slow that it is useless. It shouldn't take more than a few seconds for it to load. I have to make sure I never press the "On Demand" button on the remote lest I wait a few minutes before I can change the channel. Ugh. DirecTV VoD menu navigation is quick. Of course, I am limited by my DSL 3 Mb/s speed, so I just set the DVR to catch the shows, and view them at my convenience.
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Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum | |
| | | | techygeek
join:2008-04-30
 ·Verizon FIOS
·Optimum Online
3 edits | said by pnh102 :Redbox poses the gravest threat to Blockbuster at this point. I have to say, I agree.. My thoughts on this, what I feel --
I love video online.. convience ease but it has some clear limitations too..
Most people are not in the mood for a hassle to have to be schooled in the technology of new delivery methods of video cause they happen to be in the mood to watch a movie. The home entertainment arrangement is already cross capatible (ie: DVD, Blue-Ray, cable box, TV or HDTV, 5.1 or stereo speaker setup, VCR, etc.), I know that some HDTV makers are considering incorporating technology for receiving broadband video but thats risky too. If its wired, what's the standard, what if my set dies and i buy another one, will it work the same, if its wireless, I don't want to have to worry that my HDTV is on a wall and the signal my have interference problems. I do see broadband as a great integration but not as a threat to current DVD or Blue-ray delivered standards. Also finally, once streamed rather than embedded on a pre-recorded disc, where back to the napster threat to which the signal may be able to be toy'ed with in order to, maybe, get it for free. (remember the box that used to remove the macrovision signal). The disc format offers strong security against piracy which keeps the rental prices down.
Whew, that said... I do have netflix & love it, I don't want to give it up but its not cause I don't like DVD's. Whats nice about the DVD (or blue-ray) is i can just pop it in, if I have the 5.1 setup and hdtv, I don't need no techno knowledge, it does what its supposed to do. Also, if I am visiting friends.. I can just pop it in their player and it plays to the quality of their TV, speakers, etc.
I have always felt that redbox is a grand threat to blockbuster though, to be able to grab a DVD for $1/night while shopping is truly convienient but if I am correct. blockbuster is countering with no late fees on rentals.
I'd like to say that I like broadband delivery & do feel that blockbuster has to consider offering or merging with someone to offer a streaming library similar to netflix if they don't already, at least for the sake of keeping up with the jones's (or should I say netflix) sort of say but I wouldn't want to see the end of the disc; it is still a nice compliment & it has it's advantages as well. | |
| | Joe12345678
join:2003-07-22
Des Plaines, IL | cable / sat is a even bigger one. No need to go out to get a movie. | |
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digitalfreak
join:2005-12-09
49533
| said by pnh102 :Redbox poses the gravest threat to Blockbuster at this point. I actually saw a Rebox unit outside of a gas station today. Didn't know they were weatherproof. | |
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast
| Re: Broadband Not The Threat said by digitalfreak :I actually saw a Rebox unit outside of a gas station today. Didn't know they were weatherproof. Most of the ones I've seen are outside of McDonalds'.
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Blagojevich / Madoff 2012! | |
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DrModem
Premium
join:2006-10-19
USA | Re: Broadband Not The Threat I've seen them everywhere: gas stations, restuarants, safeways... | |
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antdude
A Ninja Ant
Premium,VIP
join:2001-03-25 | Too bad Redbox have limited selections.  | |
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unknvoip
WWJID?
join:2006-07-25
Rochester, NY | Re: Broadband Not The Threat Movies are $0.99 in my neck of the woods. | |
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Hpower
Roflmao
join:2000-06-08
Glendale, CA | Sorry to ask but what is a redbox? Never heard about that and why is it a theat to blockbuster? Thx
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The Internet is about to go down....it is actually. | |
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nightshade74
Yet another genxer
Premium
join:2004-11-06
Prattville, AL
·Knology
| Re: Broadband Not The Threat said by Hpower :Sorry to ask but what is a redbox? Never heard about that and why is it a theat to blockbuster? Thx »www.redbox.com/ | |
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Hpower
Roflmao
join:2000-06-08
Glendale, CA | Re: Broadband Not The Threat Thank you. Haven't kept up with the news much lately
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The Internet is about to go down....it is actually. | |
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nightshade74
Yet another genxer
Premium
join:2004-11-06
Prattville, AL
·Knology
| Re: Broadband Not The Threat said by Hpower :Thank you. Haven't kept up with the news much lately I like them... I dont travel much for work but every so often and
usually not to any place particularly interesting. I can pop out
grab a DVD at Redbox and return it when I get home. That
rocks.. | |
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest
2 edits | Redbox is cool, but has limitations.
The way I see it is traditional rental stores have a serious problem.
One one side they have Redbox, etc providing people very cheap and EASY access to new releases and titles. Convenience. So this hits at their revenue and business by competing in the profitable "New Releases" rental activity.
Then you have Netflix on the other side. Netflix has a massive library of content that no video store could ever come close to matching. So this competes with their other business of people renting older titles, catching up on series or sequels etc they never saw, hell, for a lot of people, it's even replacing a lot of TV watching because it's way more time efficient.
Video rental stores are caught in the middle. They have more selection then redboxes, but are less convenient and not as cheap. They have much LESS selection the Netflix but are more convenient (if you want something RIGHT NOW).
I don't see this as a good position to be in. IMHO the only thing traditional stores have going for them is brand recognition and established brick and mortar locations..... so if I was running Blockbuster for example, or Hollywood video, I would try to leverage that. First, I'd go after BOTH Netflix and Redbox. They're shooting at me, so why not shoot back?
I see no reason why Blockbuster or Hollywood video for example couldn't set up their own version of Netflix. Yes, I know they've been trying... but it seems lackadaisical or not very hard, IMHO. This is silly. They should have all encompassing content online, and tie it into the stores, where you can have DVD's mailed to you ala Netflix, OR you could see availability locally, and get the DVD's from the Brick and mortar stores.
Furthermore, the stores should open "Kiosks" ala Redbox at the stores themselves (and elsewhere) that are 24/7 just like Redbox. Walk up (or even drive up) and hey presto instant rental AND returns.
And personally, I'd integrate it ALL together. Rent from store/online mail/Kiosk and return ANYWHERE you want (store or the Kiosk or mail!)
Example: You get online, queue up some stuff, you see that several are available at your closest Blockbuster, so you go and pick up those (already reserved online you just show up and get them) and then the rest start coming in the mail... you watch the ones that came in the mail but instead you return them to the store but it's closed so you return them via the Blockbuster Rental Kiosk (ala Redbox) and then INSTANTLY you have credit for returned movies online (no mail delay) and that very night/next morning the mail warehouse ships your next queued movies. ETC ETC
In other words, I'd tie it ALL together for the best of all worlds. Store, Kiosk, Online streaming and mail. This is the only way to survive long term, methinks. It's also probably the most versatile for all consumers.
If I was the CEO of Blockbuster, or Hollywood video, or some other chain, this would be what I'd be doing right now.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
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IT Guy
Ow, My Balls
Premium
join:2004-07-29
Las Cruces, NM
clubs: | No surprise They shut down all the Blockbuster stores but one in my town. I never go to brick and mortar stores to rent anything anymore.
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S_engineer
join:2007-05-16
Chicago, IL
·Comcast
| I have one.... a 1/2 a block away. The Blu-Ray section is dismal, and how do you expect to stay in business when you have a section devoted to "Twilight"?
Theres no classic section anymore, and they only seem to carry blockbuster movies for their given time. I don't know how they've lasted this long!
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BF69~~~Please stop suffocating gerbils! | |
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Dread
Macs suck
Premium
join:2005-02-28
Bronx, NY | Blockbuster is still relevant? I stopped caring years ago, any company that refuses to compete these days is worthless. | |
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fonzbear2000
Premium
join:2005-08-09
Saint Paul, MN | For me.... The only thing their good for is online rentals and being able to trade those in for free rentals at the store.
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»Check this out! | |
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unknvoip
WWJID?
join:2006-07-25
Rochester, NY | Re: For me.... ..which they screwed up because you only can bring them home for a day or they start to charge. Blockbuster Online went from the best plan around to the worst pretty much overnight. The more they took away from it, the more they charged. | |
| | | 
bent
not broken
Premium
join:2004-10-04
Loveland, CO
clubs:
·Comcast Formerly ..
| Re: For me.... said by unknvoip :..which they screwed up because you only can bring them home for a day or they start to charge. Blockbuster Online went from the best plan around to the worst pretty much overnight. The more they took away from it, the more they charged. Indicative of the state of business in this country. Wall Street wants short term profits to prop up their annual bonuses, who gives a shit about the longevity or success of the company?
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9-11 Missed. | |
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fonzbear2000
Premium
join:2005-08-09
Saint Paul, MN
| said by unknvoip :..which they screwed up because you only can bring them home for a day or they start to charge. Blockbuster Online went from the best plan around to the worst pretty much overnight. The more they took away from it, the more they charged. Here, you can keep ALL movies as long as you want and they only charge a small restocking fee if you return them late.
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»Check this out! | |
| bgraham
join:2001-03-15
Smithtown, NY
·Verizon FIOS
| We are probably typical customers We used to get a movie or two a couple of times a month ($5.00+ each here in NY)
We got FIOS TV just before the digital switch we have not been in the store since then. For the same price we can get movies from VZ and we don't have to drive to pick up and drop them off.
Blockbuster have already closed one of their 2 local stores in our town. | |
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digitalfreak
join:2005-12-09
49533
| Switched I had BBO for a few years and got fed up with them when they couldn't get movies out on time. Tried out Netflix and haven't looked back since. Didn't think I would care about the Netflix online viewing, but I've found myself using it more and more (for older titles, anyway). Using the official plugin for Windows Media Center, the quality is ~85% of DVD. | |
| | techygeek
join:2008-04-30
·Verizon FIOS
·Optimum Online
| Re: Switched said by digitalfreak :I had BBO for a few years and got fed up with them when they couldn't get movies out on time. Tried out Netflix and haven't looked back since. Didn't think I would care about the Netflix online viewing, but I've found myself using it more and more (for older titles, anyway). Using the official plugin for Windows Media Center, the quality is ~85% of DVD. I agree, I have took a peek at blockbuster's online library vs netflix and with netflix haven't looked back. I have HBO/Cinemax thru VZ FIOS for typically 1yr+ older movies as well as TV, sports, etc.; VZ's VOD for 6mo+ stuff & anything newer or whats not on the channels I have or if I want a pristine quality blue-ray-(or actually I will when I get an HDTV), I use Netflix.
However, what I do feel about Blockbuster is, if they improve their selection, offer streaming video & respond to the customer gripes here about their supply, then I believe they can definately be a formidable competitor to Netflix & Redbox. | |
| 
mod_wastrel
join:2008-03-28
 ·magicjack.com
| Soon, maybe... but not yet. Until a significant portion of their customer base can download/stream movies/shows to watch on their [big-screen] TV, all Blockbuster has to do, still, is plan for the future. (I expect many if not most BBR members already can/do, being "ahead of the curve" so to speak... but that ain't the typical situation for non-BBR members, which is most people.) The couple Blockbusters I pass by on a semi-regular basis are always busy, on the weekends especially; and I live in an area that's had multiple, competing sources of broadband for a decade or more. Blockbuster still has time... but not a lot of it. | |
| | 
Mactron
el camino Real
Premium
join:2001-12-16
CM94sv
| Who cares.. Our two Blockbusters closed a year ago. They were poorly run by virtue of no Adult supervision by management. The kids working there were out of control. Painfully loud music constantly. You had to wait for some time to check you out and they were openly rude while doing it. "What you expect me to earn my $6.50 an hour?"
"the company seems more worried about protecting dying business models than exploring new ones."
Doesn't appear to me that their doing a very good job of protecting that old business model. Lack of customers in both models will cause this Dinosaur to soon be gone. I really haven't missed them since they closed.
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If only the Verizon CSRs worked this well.  | |
| | rebus9
join:2002-03-26
Tampa Bay
·Verizon FIOS
·RoadRunner Cable
| Re: Who cares.. said by Mactron :Our two Blockbusters closed a year ago. They were poorly run by virtue of no Adult supervision by management. The kids working there were out of control. Painfully loud music constantly. You had to wait for some time to check you out and they were openly rude while doing it. "What you expect me to earn my $6.50 an hour?" Yeah, amen to that. I was at the local Radio Shack recently, and right in the middle of ringing up my purchase the cellphone of the kid behind the counter dinged with a new text msg. (He couldn't have been more than 19 or 20 yrs old.) He stopped what he was doing, whipped the phone from its holster, and texted back. As if that wasn't bad enough, he did several back-and-forths, chuckling out loud, obviously forgetting that he was in the middle of taking care of a customer.
I got disgusted and said something to him, which snapped him back into reality.
My point is, today's kids have this sense of "entitlement" but no sense of responsibility or worth ethic. | |
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Captain456
@gci.com
| Re: Who cares.. said by rebus9 :said by Mactron :Our two Blockbusters closed a year ago. They were poorly run by virtue of no Adult supervision by management. The kids working there were out of control. Painfully loud music constantly. You had to wait for some time to check you out and they were openly rude while doing it. "What you expect me to earn my $6.50 an hour?" Yeah, amen to that. I was at the local Radio Shack recently, and right in the middle of ringing up my purchase the cellphone of the kid behind the counter dinged with a new text msg. (He couldn't have been more than 19 or 20 yrs old.) He stopped what he was doing, whipped the phone from its holster, and texted back. As if that wasn't bad enough, he did several back-and-forths, chuckling out loud, obviously forgetting that he was in the middle of taking care of a customer. I got disgusted and said something to him, which snapped him back into reality. My point is, today's kids have this sense of "entitlement" but no sense of responsibility or worth ethic. I could never own a retail establishment and have these kids work for me. I'd be firing them faster than I could hire them. | |
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Hpower
Roflmao
join:2000-06-08
Glendale, CA
·Charter Pipeline
| said by rebus9 :said by Mactron :Our two Blockbusters closed a year ago. They were poorly run by virtue of no Adult supervision by management. The kids working there were out of control. Painfully loud music constantly. You had to wait for some time to check you out and they were openly rude while doing it. "What you expect me to earn my $6.50 an hour?" Yeah, amen to that. I was at the local Radio Shack recently, and right in the middle of ringing up my purchase the cellphone of the kid behind the counter dinged with a new text msg. (He couldn't have been more than 19 or 20 yrs old.) He stopped what he was doing, whipped the phone from its holster, and texted back. As if that wasn't bad enough, he did several back-and-forths, chuckling out loud, obviously forgetting that he was in the middle of taking care of a customer. I got disgusted and said something to him, which snapped him back into reality. My point is, today's kids have this sense of "entitlement" but no sense of responsibility or worth ethic. Wow that sucks. My god you have no idea how much I HATE going to ANY store that plays LOUD STUPID punk rock music. I mean COMMON we're here to shop, not listen to someone scream on top of their lungs. This totally reminds me of Amercombie. Jesus chris turn down that damn music I can barely hear the register person in front of me telling me my total. I ended up leaving since I was getting a headache already from the music. What's worse is actually the dressing room has the speakers right next to you blasting like 5 feet away. Common, we really don't want to hear that crap.
I'd fire them asap myself and change the damn CD and put some smooth musc at low volume.
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The Internet is about to go down....it is actually. | |
| ISurfTooMuch
join:2007-04-23
Tuscaloosa, AL
| Not just Blockbuster Video stores around here have been dropping like flies. Movie Gallery dominated the market here, and then, as if overnight, they closed most of their stores. I knew things must be getting bad for them when the one closest to me started offering most if not all of its titles at $1.00. I think we have a Blockbuster left, but I'm not entirely sure where it is.
As for me, I signed up with Netflix a few weeks ago and couldn't be happier. I have a Samsung Blu-ray player that can stream Netflix, so I use streaming to fill in the gaps between by-mail titles, and I have so much in my instant queue, I don't know when I'll finish it. Some friends of mine who are in their 60s also just joined, and I snagged them some cheap Ethernet over powerline adapters so they can get a Roku box connected to their TV.
I don't know if streaming is the future (I suspect it is), but I do know that Blockbuster has made some huge mistakes. First, they have never capitalized on the fact that they have local stores. Sure, they have BBO, and they've tried to integrate that with their local stores, but it's no use when the title you want is out or they don't ship by-mail titles in a timely manner. Next, they've concentrated their operations in a few large, free-standing buildings in high-traffic and therefore high-rent areas when more smaller locations in strip malls would work better. After all, who wants to drive half-way across town to rent a movie, especially when you have to go back to return it? Finally, they need a trained and disciplined work force, not just a bunch of unmotivated kids. If you're going to allow your competition to have the edge on price (Netflix has that edge), then you have to compete on convenience and/or customer service, and Blockbuster isn't doing that.
There's a reason Redbox works. They locate in places where people go instead of making people make a special trip to reach them. Remember when you could rent movies in grocery stores, drug stores, convenience stores, etc.? That model worked, and that's how you make a brick-and-mortar (or at least kiosk) operation work. | |
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KC9FOI
join:2007-06-25
Cypress, TX
·ViaTalk
·Future Nine Corpor..
| Let us not forget the magic of Torrents.... I used to rent relatively often too. My favorite thing was the unlimited rental deal that Hollywood Video used to have for $15/month. I would go in every day and pick up a new movie. Then they raised the subscription rate and I said forget it. That was when I lived in the country where there was no broadband.
I moved to town and had Comcast, and now U-verse. My video store has become Piratebay, ISOhunt, Mininova and when I want to see an old NBC series, Hulu.
Is this fair, probably not. However I suspect that this has been eating away at companies such as Blockbuster. Between Torrent sites, niche sites like Hulu, and the proliferation of Redbox. I suspect countless other options the free to low cost options are to come and continue siphoning off Blockbuster's customer base quickly. | |
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hmm
@qwest.net | well i can go out from my 8510w to hdmi 1080p from boxee so i just don't get what the issue is, i can run boxee and have geez i don't know more shows than i could watch ever, and 1080p what more do you need, oh a remote. | |
| Tigerpaw509
Premium
join:2006-07-15
Huntley, IL | What a joke Wierd how in the the new release Isle they still have movies that are 3 years old.I havent been to BB since netflix went into bussiness | |
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See 6 replies to this post | |
neufuse
join:2006-12-06
Indiana, PA
·Comcast
| Netflix on tivo Since we got it on tivo in HD (well what ever netflix streams it at) blockbuster has seemed pointless except for odd movies netflix doesnt offer online yet.... heck our store just closed here due to low sales or as they put it "we didnt have low sales, we just couldnt reach a contract due to lack of people in the area coming in"... love how they try to spin stuff... | |
| mikefxu
join:2004-10-05
Titusville, FL
| Blockbuster now has BlueBox (Same as RedBox) Was at Publix in Titusville, FL (small town in Central Florida) and they had a Blockbuster rental Kiosk. Said DVD on it but when browsing it has some Blu-ray but way less than the Wal-Mart in town, that has two RedBox Kiosk.
The consumers are really winning here, with so many options prices are low. You can get one day rentals at the Blockbuster store or choose RedBox or BlueBox (not actual name).
I have become a Blu-Ray snob and refuse to watch anything other than Blu-Ray. I originally bought my PS3 only for watching Blu-Ray movies but since I have found COD4: Modern Warfare I have been using it for other purposes.
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6 Wireless Workstations: WildBlue Satellite:WildBlue-1 Gateway:Laredo Beam:123 on 1.5Mbps/256Kbps plan at Knob Noster, Missouri.
5 Wireless Workstations: WildBlue Beam: 32 on 1.0Mbps/200Kbps plan at Pueblo Pintado, New Mexico. | |
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SuperJoker
join:2005-11-21
Yermo, CA
·Verizon Online DSL
·Verizon west (ex G..
| I just get My DVDs from amazon.com I just get My DVDs from amazon.com and for as low a cost as I can(Apollo 13 $2.92(used)+2.98(Shipping)), Do I always pay the states sales/use tax? Nope, As not every seller on amazon is in the state where I live at. And since I own the DVD, I can watch It whenever I want and do that over and over at My leisure, Especially when there is nothing on Satellite TV that I want to watch, Like on Sundays or near the middle of the week, Some stations put up stuff I just don't want to watch and that isn't worth watching more than once(Pure drek). | |
| ebubman
join:2002-01-17
Enola, PA | redbox is it! use redbox all the time. cannot beat the value for $1. | |
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