News of the Chap 11 here. All of history is unfolding exactly as Oliva said – but not at all in the way the FTC said. Revisit the whole pathetic case in point. The government just doesn’t get that the market is a never ending process.
Source link: http://archive.mises.org/13992/blockbuster-files-for-chapter-11/
Blockbuster files for Chapter 11
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Honestly it wouldn’t have made a difference. You see, Movie Gallery wound up buying Hollywood Video, and they just went bankrupt as well. I see this more as a trend of the market moving away from big stores …and more to Netflix/Redbox.
Personally, I use both of those. I have no reason to have a movie for 5 days. So I use Redbox. If I want a TV series, there’s the beauty of Netflix. Plus, I can stream Netflix movies through my Wii.
Why would I go to a store, pay $5 for something I watch once, and then most likely forget to take it back because it’s been out of sight for four days, when I can get them immediately and pay either a low single fee (Redbox) or a low monthly fee (Netflix)?
Well, I wouldn’t. The movie rental service this past year has been a prime example as to how beautifully the market works great for consumers, and if you as a business are willing to adapt to the market, you will succeed. And if you don’t, well, Blockbuster and Movie Gallery are prime examples.
They get it. Pickpocketing is easier when the victims have been tripped and are lying sprawled on the ground.
Please be kind, rewind
It should be Ch 7. There is nothing to reorganize. The business model is dead. Liquidate! Let the parts of the failure fertilize the sprouting new business model.
Reminds me of the old battle between Lotus 123 and Borland Quattro as to who owned the right to use the / character to bring up a menu in a text based spreadsheet. While they were litigating, Microsoft came up with Excel, a graphics based spreadsheet, and the rest is history. I wonder who ended up owning the /?
Netflix is superior in pretty much every way to the old movie rental model. I only wish I wasn’t subsidizing the USPS in the process.
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