Blockbuster Spending $15-20 Million to Escape Bankruptcy

[vansau]

Blockbuster Spending $15-20 Million to Escape Bankruptcy

After going bankrupt, Blockbuster's been approved to spend a lot of money on an ad campaign that will hopefully drive customers back to its dwindling number of stores.

It wasn't that long ago that <a href=http://www.escapistmagazine.com/news/view/103739-Blockbuster-Fizzles-Into-Bankruptcy>Blockbuster declared bankruptcy thanks to its roughly $1 billion of debt. Now, the company is attempting to bounce back from it financial hardships with its first advertising campaign in three years, as well as some other endeavors that will (hopefully) reduce costs and increase revenue.

The company has received permission from a federal judge to spend $15-20 million on marketing (this has apparently been funded by third-party lenders). As a result, Blockbuster will launch a campaign that will focus on how it gets certain movies up to 28 days before Netflix and Redbox, thanks to movie studios' frustration with these rental groups' low pricing.

On top of this, Blockbuster is planning to close up to 800 of its 3425 stores across the United States. Whether or not this aggressive new plan will work remains to be seen. The company still faces some extremely tough competition from services like Netflix and Redbox, though <a href=http://www.escapistmagazine.com/news/view/102702-Blockbuster-Muscles-In-On-GameFlys-Territory>the fact that it offers games as part of its mail-rental service can't hurt its chances. In the meantime, get ready to see a lot more Blockbuster advertising this December.

Source: <a href=http://www.gamesindustry.biz/articles/2010-11-22-blockbuster-launches-USD20m-us-marketing-comeback>GamesIndustry.biz

Permalink

 

[Eri]

The only one is like a ten or fifteen minute drive for me. I'd much rather keep using Netflix, especially with that 7.99 streaming plan they just started.

 

[mr_rubino]

They missed the boat big-time and Netflix out-flanked them. That's capitalism, baby.
Also, maybe I'd be more sympathetic if they didn't single-handedly keep The Asylum afloat.

 

[The_root_of_all_evil]

I'll have a 'P' please Bob.

/injoke

Also I think this would be far more money spinning than new ads.

 

[Chewster]

Yeah, this seems like just grabbing a bigger bucket and not much else. I think the boat is going down inevitably, so they may as well just try and control how bad the final impact will be for the workers getting fucked over.

The temporary upshoot is that more of their used DVDs will be on sale, and if stores are closing that means deals abound.

 

[Shoggoth2588]

I miss my Blockbuster...best job I ever had (other than that acting thing I did last month)

Oh well: by the sound of it, I'd likely be laid off if my store didn't close.

 

[Spinwhiz]

I actually stopped into a Blockbuster yesterday to rent a new release. Where I live in NC, they have a new pay scale.


New Release: $4.99 for 3 days
Older New Releases (6 weeks after first appearing on their shelves): $2.99 for 3 days
Old Movies: $2.99 to $.99 for 3 days, depending on the movie

As I was told, the price for renting games was still $8.99.

 

[Jim From Accounting]

i prefer going to my local vid shop. its more friendly and i like the chat you can have with the guys who work there.

 

[FlashHero]

Bah their online game renting is shit..it only is good if you missed the past year of games and need to catch up like i did when i moved..they don't offer new release till 4-5 months after they have already been out.

 

[RedBeta22]

Awesome! I buy all my movies at blockbuster and rent all my games there too. Hope this works out for them.

 

[omicron1]

Thought 1: Spend money to get out of bankruptcy? Lolwut.

Thought 2: An ad isn't likely to save them. If the market is moving on, they should too.

Thought 3: So, it's possible that Netflix got 28 days later 28 days later than Blockbuster? (assuming concurrency of companies)

 

[Signa]

For $15-$20 million, I'd set up a competitive online system instead of trying to convince everyone to return to the system they don't prefer.

 

[findler]

I think the real issue is just that video stores in general are soon to become a thing of the past. Their cost and convenience is a relic, with more efficient ways of delivering the same service growing quickly.

 

[Kenjitsuka]

A Billion dollars... Insane debt!
Shouldn't there be people preventing these misstandings?

 

[zombie711]

well I hope it works. their a part of my childhood, I was too young to enjoy the 90's but I'll be damned befor I let society take the 2000's away from me

 

[TaboriHK]

It's dead in the water in the current format. I don't know why they're trying to hammer a square peg through a round hole. The era of video rental places is just about completely over.

 

[Fr]anc[is]

I remember when I was young I rented Beyond the Beyond from Blockbuster like 5 times, those were good times You could get a decent game for 2 or 3 rentals worth nowadays, I wouldn't even bother

 

[Gindil]

...

I can't watch... Someone shoot this dead horse out of its misery.

It's sad, it couldn't keep up with the times and now it's going to die a slow painful death because it couldn't figure out the digital era we live in now.

 

[Diablo2000]

I can't rent anything um Blockbuster anymore, i owe then a good amount of cash, because i stayed with "The Mist" DVD for over three months... So... Fuck them... I prefer rent online anyway.

 

[kouriichi]

They charge to much these days. I cant afford to rent from them anymore.

But the Family Video near my house is thriving. I never see the parking lot empty. Probably because theyer prices are half that of blockbusters.