Blockbuster Needs More Stores?!?

from the so-it-goes... dept

Just as some were wondering if there really was a future in store-based video rentals, Blockbuster comes along and tries to buy out rival Hollywood Video. Blockbuster already seems to have stores every 500 feet or so (there are almost as many Blockbusters as Starbucks where I live, and that’s not easy to do), so it’s unclear how having them every 300 feet will help their business very much.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Blockbuster Needs More Stores?!?”

Subscribe: RSS Leave a comment
Mike(no, not that mike) says:

I suppose

Well before hollywood video came along Blockbuster really kinda stuck it to their customers. I don’t know if any of you remember the higher prices for less days and non-nogotiable late fees. When hollywood came along blockbuster actually had to start competing. I hope they stay seperate, not that I rent movies very often but I still don’t like getting robbed when I do.

Kevin says:

Re: I suppose

In utah Blockbuster stores have a sick way of entertaining themselves. If you are late on a video return, they imediatly send it to a collections agency, followed by a string of harrasing letters from that agency. Hollywood is people oriented and has no problem with you paying the late fee on your next visit.
I figure it this way. If you rent a video, you go past the return date. You might as well keep it for another week, they are going to charge you for the week anyway. In the mean time I don’t need my $4.50 late fee turned over to a collection agency. If Blockbuster buys Hollywood. I will find somewhere els to rent videow.

RJD says:

growth through elimination

Buy the stores; collect the customers; sale the stores (assuming they aren’t leased) there by making a profit on the buy out. Hollywood Movie stores aren’t the competition anymore; it’s Netflix and the vending machines that are starting to pop up. So you buy customers. Not an uncommon business practice particularly when the market is saturated and the opportunities for organic growth are little and none.

Nate says:

Don't believe the synergy BS

The point of buyouts is not to merge the two companies but to shut down competitors.
Can this possibly make it through anti-trust? Blockbuster is practically a monopoly with Hollywood its only token competition.
I am sure they will invoke NetFlix and pay-per-view to try to make the case that they are not a monopoly.

Anonymous Coward says:

Re: Don't believe the synergy BS

Actually, the video rental industry is still fairly fragmented with lots of “mom and pop” stores.

Blockbuster is definitely the largest corporate player, and there probably isn’t a lot of mom and pops in large portions of suburbia so it is a defacto monopoly for a lot of people, but from a U.S.-wide industry standpoint they aren’t even close to being a monopoly.

There are two mom and pops as close to my house as there is a Blockbuster and a Hollywood, but I use Netflix, so I really don’t care.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...