Posted on 08/13/2010 1:59:24 AM PDT by KentTrappedInLiberalSeattle
The troubled renter of movies and video games said Wednesday it wouldn't hold a conference call with analysts after it released quarterly earnings, which it was supposed to do today.
Now it appears Blockbuster might not even release those financial results at its scheduled time.
Several calls and emails to Blockbuster press and investor relations were going unanswered, and, as of 4 p.m., there was no earnings release in sight.
Blockbuster shares on Thursday rose 18% to 18 cents. The stock has been delisted from the New York Stock Exchange and now trades on the pink sheets under the symbol, BLOKA.PK.
The heavily indebted company is supposed to make a $23.9 million amortization payment and an $18.5 million interest payment on Friday.
When it canceled its call with analysts, Blockbuster said: "In light of the sensitive nature and fluid, rapid pace of ongoing negotiations related to its recapitalization, the company will not host a conference call in conjunction with the earnings release."
It reiterated, though, that the earnings release would happen today after the close of trading.
Ping.
Absolute failure of a business model. Good business school case of a company that failed to adapt to a rapidly changing marketplace.
I think it’s not just about the mode of distribution, but also the content. People have more options and choose not to be propagandized by hollywood crud.
Their biigest mistake was the way they treated their customers. Of course, most American companies flunk the customer service aspect (esp. those that ship call centers to India)....Blockbuster was really bad
It’s been Red Boxed out of viability.
If that’s the case, Netflix would have gone bankrupt too. In fact, I think Netflix is even more liberal than Blockbusters in the way they catalog the movies. Try search for comedy+foreign, most of the returns would be gay movies.
I was a brief customer for four months back in the early 90’s. After one irritating moment....I decided this wasn’t a place to do long-term business and I never went back. The small mom & pop joints actually wanted your business and always treated you right.
My livery stable and buggy whip manufacturing company aren’t doing so hot either.
They would attempt to charge movie theater prices for snacks at the checkout stand. I remember the $5 blue bags of "Blockbuster" microwave popcorn - when you could buy a carton of microwave popcorn at the supermarket for the same price...the $4 candy bars and so on. I wonder if anybody was stupid enough to buy that crap.
I wish our Blockbuster was still open. Redbox has current films but you can’t rent some of the oldies that you could out of BB. It’s not a tragedy but I miss being able to find older movies when I wanted them.
Excellent point: 15k a month rent on brick and mortar which rarely sees $500 in daily revenue... Multiply that times 5500 stores. They have the best accessibility to entertainment, but have no clue how to deliver it properly!
Where are the downloadable multimedia Kiosks?
Blockbuster stores almost needed a “Report Abuse” button in each one.
I did the BB thing for years. But as the prices per flick started to rise, I went less and less. I just did without rental flicks.
Finally 2 RedBox machines were installed at the grocery store across the parking lot from BB, and I haven’t returned to BB.
I could spend $5 at BB, or walk across the lot and spend $1.08 at the RedBox. “Survey says....”
I’m surprised that Blockbuster didn’t go under a long time ago—they’re getting killed by both NetFlix and Red Box in the rental business, not to mention loss-leader first-week home video DVD sales from Amazon.com and Buy.com online and Wal-Mart and Best Buy with “brick and mortar” stores.
If we have a need for a dvd, we'll try the library .
Dear Blockbuster,
Since hindsight is 20/20, allow me to remind you of a little incident many years ago: I was a teenager and had rented a movie or two that I had not returned on time. Stupid of me (since late fees are a fine on stupidity), but that was no excuse for your representative to accuse my mother of lying when you called the phone number on my account. It was my account and, no, my mother did not know anything about the movies I rented or when they were due.
As you may recall, I returned both the movies and my Blockbuster card and told you at that time that I would never rent movies from your company again. I’ll give you some credit, you’ve limped along far longer than I thought possible, considering your customer service practices of long ago, though it appears your bad attitude has finally caught-up to you. I can’t say I’ll be entirely sorry to see you go.
Sincerely,
GizmosAndGadgets
P.S. To the store clerk who called my mother a liar and the thousands of others like you who ruined Blockbuster’s reputation: Blockbuster’s failure is a direct consequence of your behavior.
There is a new group called Red Box which has rental machine outside of my local Walgreen. Only $1 a night and all the latest releases.....
I think BB’s poor customer service is a consequence of the cultural rot in our country. It is now rare that I’ll get acceptable customer service from anybody under the age of 30.
Yep, you nailed it. They will go the way of buggy whip and church key beer can opener manufacturers.
If I remember, they tried to prevent or make it difficult.
It does not help that hollywood makes mostly unviewable overhyped pc garbage and blockbuster enabled the straight to video category.
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