News
Blockbuster closes its doors due to Netflix
The Pointer
jlutz715@uwsp.edu
Blockbusters are closing their doors and waving the white flag. After a year of struggle in 2008, the company decided to close 282 stores nationwide this year and hopes to beef up their online sales to compete with Netflix, according to an article in the Associated Press.
In that same article was a comment from Andy Cross, senior analyst with The Motley Fool, which advertises itself as the greatest investigating community. “They don’t make any money on the online business, which is a smaller part of their current business, and they’re not going to make any money on that, definitely not this year,” Cross said. “I personally think they will continue to struggle.”
In an article by the Convenience Store News, Blockbuster Inc. said, “Although substantially doubtful, it may close down all 7,400 stores globally.”
So the question remains if other video venders, like Family Video and Hollywood Video, are seeing the same effects. Brett Dulmes, manager-in-training at the Stevens Point Family Video, said, “We opened 90 new stores last year alone, so we’re definitely not struggling. We haven’t seen a drop in customers at all.”
How is it that Blockbusters are closing down city by city, but Family Video opens more stores? When asked what they think their number one difference is between Family Video and Blockbuster, Dulmes, along with employees Cassie Johnson and Jessy Heisig, all said, “customer service.”
Heisig also stated, “With Netflix you have to wait to get your movies. Here, you come in and leave with what you want to watch that night.” Also with a standard Netflix membership you can only rent one movie at a time. That rules out movie night with the girls and “The Lord of the Rings” marathons.
Ashley Sveom, a University of Wisconsin-Stevens Point student, said she still uses Family Video because, “it’s convenient and has great customer service.”
Another alternative is Redbox. Julie Driscoll, another UWSP student, said, “I use Redbox as an afterthought. I don’t go to a Redbox to rent movies, but if I see it at the County Market I might think about picking up one up.”
