Blockbuster stores keep closing earlier and earlier, and permanently.
It has recently been spoken about loudly by industry pundits that Blockbuster is in a death spiral. Can’t believe it? Just have a look at its stock pricing and recent flood of vacant movie-rental stores in Canada and the United States. Sorry folks, (particularly those that enjoy visiting a real-world video store), the industry goliath that we all know and love is fighting for its life and its not looking good.
So what’s a once powerful video juggernaut to do? Well, Blockbuster Canada has just unveiled a new $9.99 Favorites plan that will allows users to rent as many DVD titles (one at a time) on a monthly basis.
Sounds desperate? Well it is….but will it work? Let us do what the Blockbuster Exec’s do when making tough choices, let’s shake a magic 8-ball!
Actually, considering that Canadian’s have less choice then Americans, it may stem the tide of online competition for a few more months. MAYBE.
The “Favorites Pass” program, which does not include Blu-ray Disc movies or new releases (big mistake), is thought to be an antidote to Netflix’s newly announced plan to bring its streaming service to Canada late in 2010.
Netflix currently charges $8.99 monthly for a one-disc-out-at-a-time and unlimited streaming of catalog movies and TV shows in the United States. The service has not announced a price for just streaming.
According to Blockbuster Canada, in reference to the Favorites Pass:
“If you rent and return 15 movies in one month, each would cost just over 50 cents per rental”
Blockbuster’s previous stand was to reduce the price of new release rentals to $3.99 in an effort to remain competitive. And the chain also offered an unlimited DVD rental program for $39.99, which ended permanently earlier this year.
The writing may be on the wall. I’ve been noticing some disturbing trends lately. For example, many locations close at 11pm at night now, but used to remain open until midnight. Also, as I recently reported, there are currently fire-sale on Videogames at Blockbusters in Canada.
In fact, I personally bought over 20 Xbox 360 and Wii titles for as little as $2.50 a game. Let me tell you, that’s insane.
These included such great games as 2008’s “Prince of Persia” and the original “Mario Galaxy” for the Wii.
In fact, they’re selling used DVDs from 30-50% off and blu rays as low as five bucks. Just imagine the sales if they close down for good?
Is the end nigh? Chime in and let us know if you noticed any disturbing trends at your local Blockbuster.
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