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Blockbuster's Online Service Shows Strength

By BetaNews Staff, BetaNews

May 2, 2007, 11:16 AM

Blockbuster's online service seems to be catching on, as the company added some 800,000 subscribers during the first quarter of the year, it said on Wednesday. Over the past two quarters, it has nearly doubled in size to 2.8 million members, and beat its larger rival Netflix in subscriber additions for the first time. Netflix added 481,000 new customers to end this past quarter with 6.8 million subscribers.

The quick growth has not come without a price however. The nation's biggest brick-and-mortar movie renter swung to a much larger loss, posting a net loss of $46.4 million compared to $1.9 million in the year ago quarter. Cost of sales increased 17 percent, while operating costs increased 3 percent.

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By Neoprimal

posted May 3, 2007 - 8:34 AM

I'd wear down too if all 4 employees asked me 3 times each if I tried the online deal. To be honest, it's a great deal - but at the backend it seems like something made to wear netflix down. If Netflix closes it's doors 1 day, what are the chances that Blockbuster's online offerings stay the same? For one, I wouldn't be surprised if they changed it to $30 or $40 for the same gig. I don't want to be cynical but I hope for all our sakes, even if I don't use it, that Netflix is here to stay.

Score: 0

By NunjaBusiness

edited May 2, 2007 - 3:51 PM

I was a charter member of NetFlix and stayed with them until the number of "long wait" selections outweighed the ones they actually had. I jumped ship to BlockBuster and have never looked back. Selection is great - turnaround time through mail is as good as Netflix and the fact that I take them in and swap them on my way to work means I get twice as many movies.

Unless Netflix makes a deal with Hollywood or Movie Gallery to do the same, they will continue to lose members.

BTW, most of you commenters don't know your a** from a hole in the ground! Some of the comments are so stupid I just shake my head.

Score: 0

By mshulman

posted May 3, 2007 - 11:34 AM

I think I have rarely seen a long wait.

So far, I have no reason to leave Netflix - its been fast, reliable and wait free.

Score: 0

By horsecharles

edited May 2, 2007 - 2:34 PM

This is another Enron-pyramid-type business model.

BlockBuster also did away w/ late fees-- so now their b&m selection is very poor.

What they're doing is artificially inflating their numbers by temporarily buying customers-- who will not renew once BB is forced to reinstate late fees and/or up membership price...& also because store selection is so poor.

They must want to be acquired real soon, before the Street punishes them.

Score: 0

By terminalx

edited May 2, 2007 - 4:15 PM

For the average movie watcher blockbuster is a good choice. If its more obscure movies then Netflix would be the better choice.

Why would they need to lie about their numbers they are growing because

A. its a good deal
B. you get more movies faster
C. its the same price as netflix
D. you also get a additonal movie rental a month on top of everything else.
E. you can keep the movies from a store for a week after a week you are charged a 1.25 restocking fee per movie, if you keep it over a month your acct will be charged for the movie

/I was with netflix, got tired of long delays and receiving unplayable movies, had to wait until movie was returned before they would send a replacement. This was over a year ago maybe things have changed but I am happy with blockbuster.

Score: 0

By atomriot

posted May 2, 2007 - 12:45 PM

bounce back
http://digg.com/tech_new...line_gaining_in_numbers

Score: 0

By atomriot

posted May 2, 2007 - 12:40 PM

I also get my movies in one day from blockbuster. I like how they scoffed at nettits by allowing their red headed stepchild users to bring in their movies and get free rentals.
if nettits had a set-top box with downloadable content, i might switch but right now, blockbuster is where its at, its like twice the amount of movies for the same price. not to mention i could pick up a game here and again if i wanted.

Score: 0

By smarterthanyou

posted May 2, 2007 - 1:43 PM

When compared to Netflix, Blockbuster has a very small selection of movies. About half of the movies available on Netflix aren't even available through Blockbuster.

As for renting movies from a Blockbuster store, this defeats the whole purpose of not getting charged a late fee of some sort. I doubt Blockbuster will let you keep a store rented movie forever. Netflix on the other hand will let you keep a movie for five years if you wanted to with absolutely no extra charges as long as you pay your monthly dues. This is an extreme example, but you could do it if you wanted to.

Score: 0

By terminalx

edited May 2, 2007 - 4:32 PM

You still can have them mailed to you the point is blockbuster has made it so you can take your mail rentals directly to them they will process it and let you pick out 3 movies in the store which means no waiting. They will then que up your next movies and its possible in a day or two you will have 3 more movies. You can keep the ones from the store for 1 week before there is a 1 time late fee of 1.25 ea unless you keep it for a month where they will charge you for the movie.

If you rent it online you can keep them for however long you want same with netflix.

Score: 0

By Hollywood__

posted May 2, 2007 - 11:56 AM

You dumb s***s, the whole point of having movies delivered to your door is so we dont have to get up off our fat asses and go to the video store.

Netflix needs to open stores with rentals at a fraction of the price of c***buster.

Score: 0

By PC_Tool

posted May 2, 2007 - 12:24 PM

lmao...

whole point of having movies delivered to your door is so we dont have to get up off our fat asses

Netflix needs to open stores

So, because people don't want to get off their assess, Netflix should open brick and mortars?

Neat trick. Try contradicting yourself in the same sentence next time. That'd be even funnier.

Score: 0

By Hollywood__

edited May 3, 2007 - 1:56 AM

I love the fact that I can contradict myself in the same breath. It's a gift. You can't learn this kind of talent.

I suppose it's not entirely untrue that Netflix doesn't need to, but should open retail stores to compete with Blockbusters business model. But I wouldn't go to them if they did, unless it was to make my life easier, in which case I'd stay home and mail them, which is a pain in the ass.

Are we clear?

Score: 0

By cap737

posted May 2, 2007 - 11:45 AM

The only good thing about it is that you can take the movies to blockbuster and get new ones right there. The mail delivery part of it kinda sucks because when I tried it they weren't sending me the movies that were on the top of the list.

Score: 0

By Program86

posted May 2, 2007 - 11:55 AM

"they weren't sending me the movies that were on the top of the list."

That is their main problem that everyone complains about.

Score: 0

By Program86

posted May 2, 2007 - 11:34 AM

800,000 new suckers...

Score: 0

By ajadoniz

posted May 2, 2007 - 11:48 AM

how are they suckers? people that sign up for netflix are the suckers, not blockbuster. although i am not subscribed with either, i think that the opportunity to return the movies back to your local brick n mortar is way better than waiting 4-8 days for another movie.

Score: 0

By Program86

posted May 2, 2007 - 11:54 AM

It is pretty obvious that you are "not subscribed with either" because if you had ever dealt with BlockBusted you would stay far far away.

Oh and btw, I always get NetFlix in 1 day, without burning gas or wasting my time. Thanks for playing though.

Score: 0

By terminalx

edited May 2, 2007 - 4:40 PM

Can you have three movies drive to the store and get three movies instantly, No you have to wait.

Blockbuster you do not have to. For the average moviewatcher this is good as they are not looking for the more obscure movies. PLus they que up your next movie and could have those in a day or two.

Score: 0

By mshulman

posted May 3, 2007 - 11:38 AM

And how many people watch movies that quickly? 3 movies in 2 days time?

That's all it takes for me to get new netflix titles - 2-3 days max. Lately, I find we keep them far too long without watching them. But in the past, we'd watch all 3 over a weekend, ship them off and have more for next weekend.

All going in to the store is doing is allowing people to indulge in their must have it now attitude. I'd like to know how many of these people actually watch what they pick up in store prior to the time they'd actually have received new titles in the mail.

Score: 0

By PC_Tool

posted May 2, 2007 - 12:26 PM

adjadoniz
how are they suckers?

Program86
if you had ever dealt with BlockBusted you would stay far far away.

So...if he knew the answer to that question, he'd....know the answer?

Wow!

That was ... helpful.

/sarcasm

Score: 0

By scrumbus

posted May 2, 2007 - 12:01 PM

I tried CrockBuster for a while too, it was a bad experience - ended up switching to NetFlix. The competition is good though, hopefully drive down price. BTW, I get my movies in a single day as well.

Score: 0

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