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DVD industry





Tony The Tiger
Does anyone have a good understanding of what is going on in the DVD industry. I live a block away from a Blockbuster video store location that closed last September and three blocks away Hollywood Video store location that has since closed. I am a blockbuster online member and use to enjoy having a blockbuster location in walking distance right down the street. Why are so many DVD stores closing? It seems to me that DVD rental and sales statistics continue to be relatively high. Is the DVD an archaic tedchnology now?
Donutey
It's a combination of people moving to either online, on-demand, mail-order rental services, and rental kiosks. I suspect the tipping point for a lot of stores was this current recession.

I remember reading somewhere that movie rentals are actually up, because it's cheaper than going to the theater. Also, DVDs as a medium are on the way out, though I suspect it will take them a long while to die (much slower than VHS's death), to be replaced by streaming/downloadable content and Blu ray.
Tony The Tiger
Donutey wrote:
It's a combination of people moving to either online, on-demand, mail-order rental services, and rental kiosks. I suspect the tipping point for a lot of stores was this current recession.

I remember reading somewhere that movie rentals are actually up, because it's cheaper than going to the theater. Also, DVDs as a medium are on the way out, though I suspect it will take them a long while to die (much slower than VHS's death), to be replaced by streaming/downloadable content and Blu ray.


I though Blu ray was just a special type of DVD. Also, movie rental stores like Blockbuster rent Blue ray versions of movies so if Blu ray is the reason, this would not cause them to close. As far as streaming content goes, I am not so sure I see that taking a huge chunk of the market. Do you see statistical projections to that effect. Although I frequently miss my favorite television programs and watch them online, I never watch movies online and have not heard from friends that they do so often either.
froginabox
Not that, as a poor college student, I can afford Blockbuster or Netflix anyways, but over the summer when I have a more steady income I subscribe to Netflix. I pay around what it would cost to rent one movie from Blockbuster per month, and can get "as many movies as I want" per month. Granted, the turnaround on sending a movie to you, you watching it, and sending it back and them sending you the next movie in your queue is (at my imaginable minimum) 4-5 days - but that is still 6 or 7 movies a month for the price of one at Blockbuster. How they do this and make a profit? No idea. But I do know it works, and it's convenient, and you don't have to worry about late fees or returning things on time.
Tony The Tiger
froginabox wrote:
Not that, as a poor college student, I can afford Blockbuster or Netflix anyways, but over the summer when I have a more steady income I subscribe to Netflix. I pay around what it would cost to rent one movie from Blockbuster per month, and can get "as many movies as I want" per month. Granted, the turnaround on sending a movie to you, you watching it, and sending it back and them sending you the next movie in your queue is (at my imaginable minimum) 4-5 days - but that is still 6 or 7 movies a month for the price of one at Blockbuster. How they do this and make a profit? No idea. But I do know it works, and it's convenient, and you don't have to worry about late fees or returning things on time.


I am a member of Blockbuster Online. I pay $21 per month. I get at least 3 movies per week or 13/per month for that price. Often when movies arrive early in the week, I can get a second set in a week. I probably actually get closer to 15 or 16 movies per month using this system. However, I use to get twice that many until my local Blockbuster closed. Previously, I could return the movie to my local blockbuster and they would give me a movie while another movie was being processed by the warehouse for mail delivery to my home. I use to see movies at a cost of less than $1 per movie. Also, the monthly membership use to be $19.07, but in about January 2008 they raised it to $21.19. The online mail memberships are quite economical. I don't know that there is much difference between Blockbuster and Netflix except that you can return movies at your local Blockbuster and not have to wait for the movie to return in the mail. Recently, Blockbuster changed their instore return policy so that they would only send it in the mail when the exchanged movie was returned. Before that the movie would be sent when the mailed DVD was returned. Now you can't quite get twice as many, but you do not have to wait for the DVD to get to the warehouse before another one ships because it ships the day you return the DVD.
froginabox
Wow, I like the "return to the store" option... that really is a great deal! I'll have to talk to the local store and see if they're closing... hope not!
Tony The Tiger
froginabox wrote:
Wow, I like the "return to the store" option... that really is a great deal! I'll have to talk to the local store and see if they're closing... hope not!


Like I said above, the return to the store option is not as great as it use to be, but it is still a big advantage. The biggest advantage is when you are traveling. When I go to my mother's in Memphis (I live in Chicago) or visit relatives in Houston, Minneapolis, New Orleans or even on personal or business trips to Cleveland, Los Angeles and Buffalo, I have been able to take my DVDs with me and return them at the local store in that city for an in-store exchange in town. At first, not all cities had this option. I believe it is now nationwide because all the cities I have mentioned above are part of the Blockbuster Online exchange program now. At first neither Memphis, Buffalo or Houston had the program even though Chicago did.

It truly seems that they are phasing out brick and mortar stores. Here in Chicago instead of walking one block I would have to drive 4 or 5 miles now to do an in-store exchange. It is no longer worth it. I hope you have a convenient store and one that is going to survive a while.
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