Blockbuster has hired law firm Kirkland & Ellis to explore "refinancing and capital raising initiate[s]" but, according to company spokeswoman and senior vice president of corporate communications, Karen Raskopf, Blockbuster does not "intend to file for bankruptcy".
Source: Gamasutra [ more info ]

Blockbuster really seems to be struggling in the midst of US economic woes. But we have to assume their issues extend from direct competition with NetFlix and Gamefly who are both doing well.

A few years ago Taks and I lived and breathed Blockbuster. Of course it was right around the corner so it was incredibly convenient. Then we started having issues actually renting movies/games within weeks of their release date. So we started going to Hollywood Video. When our local Hollywood Video closed we switched to NetFlix and have been happy with their service since.

I'd like to close out this post with a nice big IF.
If Blockbuster files for bankruptcy protection in order to restructure (which I think, ultimately they will), I believe they'll come out the other side with a viable plan in place and will survive. I dunno why. Just a feeling.

P.S. I think Karen Raskopf may secretly be undead.

I have my well-used Netflix acct, but I stopped by Blockbuster the other day for an impromptu rental. Got my DVD along with a coupon for a discounted rental. When I returned the DVD (on time) and went to get another DVD, I found out that the coupon they gave me wasn't active for another week. So if I'm responsible and bring movies back on time, I still have to come back later to use the cryptic coupon? Evil.

Also, they reinstated the late fees? Guess there wasn't a big ad campaign for that reversal.

I did a tour of duty as a BB employee back in the 90s, so I'm not rooting for them to hit the Zapper, but a little suffering is well-deserved.

I had Netflix for a while, and realized that I was keeping movies for weeks at a time without watching them, and was just wasting money on the subscription. I enjoyed the service...I just didn't use it enough. I've had Gamefly for the past two years and I think it's great. I have a major issue with the fact that unless you're *very* lucky, you aren't going to get a new release game shipped to you within the first three months it's out. (I even tried keeping the game that I wanted as the only game in my queue, to see what would happen and the only thing it served to do was make it so that I didn't recieve *any* games.) It's especially annoying that they have a system that gives preference to new users of the service, so loyal customers like me get boned when it comes to new releases. :-/ Oh well...still a great service.

I wouldn't be sad if Blockbuster went under. Not after the way that they completely ruined the mom + pop video stores and treated their customers like crap when they were on top. (I don't care that they changed their policies, especially since they only did it because Netflix started handing them their ass.)

I had Blockbusters online service for a while, and up until you could stream Netflix through the 360 it was pretty decent. Could have three movies delivered at a time, and if you returned the delivered movies to a local Blockbuster you an in-store rental for free for each movie you brought in, plus two coupons a month for a free movie or game rental. But alas no online viewing, so I'll save the gas and about another 10 bucks a month on top of that since Netflix is cheaper.

They are going to add an online game rental, a la Gamefly, but honestly if their online selection is anything like their in-store selection they're not going to do so hot. They might actually make a little more money if the stores didn't stock about 35 copies of Viva Pinata that are ALWAYS available, but the two copies of Street Fighter 4 (or similar hot new release) just never seem to be in (if they are stocked at all).

Originally Posted by Woody:

P.S. I think Karen Raskopf may secretly be undead.

LOL! I think you may be right!

Actually, sounds like all of Blockbuster may be undead soon. On the other hand, if they can adapt their business model they may just survive. I have to keep reminding myself that even though I haven't set foot in a video rental place in years*, there are still lots of people who do so regularly and can't imagine any other way of getting their video content.

*I used to have Netflix, and loved it, especially the streaming option. Now I make do with FiOS HD (lots of premium channels), On Demand, and Hulu.

Oh, edited to add, wasn't there some controversy about Blockbuster only renting modified/edited versions of some movies? Not just that they won't stock NC17 titles, but supposedly an R-rated movie they were stocking had been modified in some way?

yeah, they don't have porn so I don't go.

I'm a current subscriber to Blockbuster and tried out Netflix for a free trial when I finally got an Xbox a few weeks ago. I didn't really see much of a difference. Now in my case we do the 3 movies out at a time mail only and one thing that irked me was paying an extra dollar a month just because I want to rent Blu-Ray. I understand how they justify it, but given the dearth of Blu-Ray selections I didn't see how it would be worth it to me.

My other gripe was with the whole reason I was trying it out, their instant selection seemed to be rather lacking, and searching just for movies offered through the instant queue was a bit tedious.

The final straw was having to go to my computer to have to add movies to my instant queue and then go play them. The amount of data required to be transmitted to the console to make that kind of data available locally is so minuscule that I don't see any reason it should be excluded unless through some sort of contract with the MPAA.

Just my two cents.

Originally Posted by DashCat9:

I've had Gamefly for the past two years and I think it's great. I have a major issue with the fact that unless you're *very* lucky, you aren't going to get a new release game shipped to you within the first three months it's out. (I even tried keeping the game that I wanted as the only game in my queue, to see what would happen and the only thing it served to do was make it so that I didn't recieve *any* games.) It's especially annoying that they have a system that gives preference to new users of the service, so loyal customers like me get boned when it comes to new releases. :-/ Oh well...still a great service.
)

I think they have some internal priority system on accounts, any time I start having a problem with not getting the new games promptly I just send an email stating as much, drop blockbuster or gamestop's name in the email as well as alternatives if their service doesn't improve,and mention how their services used to be excellent, and so far has improved my response time. Sucks that I have to do this every 8 months or so, but hey it works.

There are very few companies I can't stand, but Blockbuster is the one. It like the mortgage companies learned predatory lending techniques from these guys.

I'm not sure how they are doing, but Redbox vendor is doing pretty well here at KU. It's the reason I don't go back to Blockbuster, at $1.06 a day for a new release, it's a lot cheaper than Blockbuster's rental options.