How Netflix (and Blockbuster) Killed Blockbuster

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I worked for Blockbuster from 91-94 and enjoyed it, but there was the early warning coming from angry customers who turned in their membership card stating that the nasty letter they got warning them that if they did not pay their late fees (of only a few dollars) they would not be able to buy a home or car because of a negative credit report. Blockbuster committed the unpardonable sin of alienating their customers. Despite our efforts to be good customer reps, their collection agency had all the charm of a loan shark. I myself was charged a $3.00 late fee, recieved a nasty letter stating the fee had to be paid within 10 days and got a nastier phone call within 2 days. As I was by then a former empoyee, I vowed never to set foot in a Blockbuster again. I agree, that they should leave ASAP, as their buildings have become an eyesore on the landscape.

Enzal of TX 11:39PM January 10, 2011

Blockbuster is a ripoff plain and simple. They charge entirely too much for their DVD's and then you also get the occasional but annoying mistake by their staff when for instance I rented two movies, returned them on time, and when I went to rent from a different location a few weeks later, they said I couldn't rent anything until I returned my previous rentals. When I explained that I had, they said I had to go back to that store to fix the problem. So basically I couldn't rent any movies that weekend which really ticked me off, and when I did get back to the other store, they researched and found out that the movies were in fact there, but were never scanned back in by an employee. So naturally I felt that I should be compensated by at least a free movie rental if not two, because the mistake was not mine, and I was blocked from renting any movies the weekend prior. They basically told me, "sorry, we can't do that". And that was the last time I was in a Blockbuster store. I signed up for Netflix that night. And when I realize how much money I am saving now with Netflix, I'm glad Blockbuster doesn't know how to treat their customers. I was spending at least 16-18 dollars a week on rentals at Blockbuster. Now I spend 16-18 dollars a month with Netflix. Not to mention Blockbusters pathetic Blue Ray Section which NEVER has anything you want to rent in stock. They had like maybe two to three copies of new releases in blue ray. HELLO!!! Don't they realize that technology has changed and more people have blue ray players. I mean what the hell did I buy a blue ray player for, if Blockbuster never has blue ray movies in stock? That was the other reason I decided to go with Netflix. Bye Bye Blockbuster, hope you go down in flames, and tomorrow wouldn't be soon enough!

Nick of NY 10:44PM January 10, 2011

While Netflix is cheaper than Blockbuster, I like the combination of dvd by mail and being able to go to the store the same day that I want to see a movie instead of waiting for it in the mail. And unlike Redbox I don't have to turn the movie in right away. Otherwise, my monthly subscription would equal redbox rentals if I was always a day late. Now with the rise of movies on demand, I may decide to switch to Netflix due to it being cheaper, but then if I order a movie on demand--I am probably confined to the tv that allows for video streaming and cannot watch the movie on my portable dvd player. So for options of where to watch the dvd--I may decide to stick with Blockbuster...

AK of OH 10:03PM January 10, 2011

Pricing is why. Blockbuster charges around $5 for a movie for 2 (maybe 5 or 7) days. Redbox cost for 2 days, 2 dollars. Netflix cost, however much your paying a month. Now, with Netflix, it still takes 2 or 3 days (in my case, almost 5 days) to receive a movie or whatever by mail. I can get the movie the day it hits DVD at Blockbuster. Blockbuster's business model is far ahead of the competition, but it needs to lower prices to bring back budget driven consumers.

a of KS 8:29PM January 10, 2011

@steve I work for Blockbuster currently, and I would like to point out that the problem here when the employees are spending too much time selling you promotions is not the employee's fault, it's the management in the first place. Employees do not want to spend forever trying to get you to buy stuff anymore than you want to spend forever listening. We don't get paid on commission and the only reason we try to pitch so many sales is that our jobs depend on it. We will get fired if we don't meet our weekly quota of sales and the quota is extremely high. So you say that the management doesn't know how terrible their employees are but the real problem is that the management doesn't know how much the customers hate getting pitched to everytime they are in the store. Trust me, the employees know since we're the ones getting yelled at on a daily basis for just trying to do our jobs. We hate it at least as much as you do, but it's the only way that we are going to get paid at the end of the week.

Blockbuster employee of WA 6:50PM January 10, 2011

There is really only one aspect of this whole thing that matters. With Blockbuster offering a huge selection, they should have no problem competing. The issue is cost. I can go to Redbox and pay $1, or I can go to Blockbuster and pay $5. They have not responded in ANY way to the competition. I say good riddance!!

Dave of CO 4:50PM January 10, 2011

Very soon you will see all video rental/streaming/on-demand places go defunct...
It is not rocket science....
It won't be long before Hollywood execs and other movie studios see the opportunities here; that Netflix started.
The reality today is that people only have a few choices to see movies...either in theaters when they first come out or rent/buy them when available. Hollywood execs are starting to see potentials here for billions of $$$ that they NEVER had before and also a easy way to almost 100% eliminate piracy.
Presently if a family wants to go to the theaters; they are looking at a substantial cost versus rentals plus they can do it in the comfort of their homes. Hollywood execs have future plans to offer something better than theaters and better than Netflix; the full meal deal and best of all worlds at the same time.
Here's their solution:
On release date for the movie, it is made available via theaters, purchase and online viewing/download...legally and ALL at the exact same time and at a lesser fee than today's prices. If you can watch it on the day of release anywhere in the world and at a cheap rate...guess what...piracy will be reduced massively and due to the lower costs...more will be able to partake; thus more revenue back to the studios.
Now those that love the theater experience will still want to only go to theaters to watch new hit movies.
Then there are those families that may not be able to afford the total cost for 4 or 5 members to go plus their food/drink costs....but they can download it to their TV's at a cheap rate.
Then there are others that want to go but weather on that day in their area is bad...so they can't drive to the theater......but they can download it legally and view it at home without driving in bad weather.
Previously, DVDs and Blurays weren't available till a much later time after intial theater screenings but under new plans...everything will be available at the same time.
Yes this is all going to be a logistic nightmare...but it will work and will become very popular. Hollywood execs have Netflix's track record to prove it...and Hollywood execs have the distribution network and money to do it faster and easier than smaller chains :)
No it won't happen overnight...but wait and see how long it takes for Hollywood and other studios to jump into the $$$ bandwagon.
Our movie viewing abilities are changing quickly and the future will be amazing

dave 10:47PM October 03, 2010

I rented numerous bluray discs from Blockbuster before but I have gotten so irritated with the employees at the counter spending way too much time trying to sell some promote leaving me waiting forever to pay that now I refuse to go into any Blockbuster store. I get my HD movies off rogers TV on demand or I buy them. The aggravation dealing with the staff at Blockbusters is not worth it. They should have paid a bit more attention to their customer service. All the years I have never had a call for feedback of service so I don't know how management ever knows how terrible their employees are!

steve 11:02PM September 25, 2010

Netflix's streaming service has something that Blockbuster does not: access to Apple customers. Blockbuster's streaming service is incompatible with Macs do to the boneheaded decision to use Windows Media and its corresponding DRM for video delivery, leaving all Mac users out in the cold.
Netflix not only supports Mac users fully, they had their iPad app out on launch day (it's even available on the iPhone now, and they're officially bundled with the new AppleTV.
Where is Blockbuster? Bankruptcy. Good riddance.

Loudness of GA 7:08PM September 24, 2010

I refused to go to BlockBuster. Their stores always had rude employees and their fees were always higher than other video stores. Hollywood Video was great and I did not encounter any rudeness at their stores. NetFlix is great and you can discover lots of films you might have missed. RedBox is actually cheap but most people hate having to wait in line in front of a stupid machine. I guess young people hate anything that is not instant. Personally, I miss Hollywood Video, but a new video store opened up recently in its place and we definitely will be going there to try it.

Frank of IA 9:26AM September 24, 2010