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103 Comments
- DavisFreeberg, on 10/12/2007, -0/+4Apple should just buy Blockbuster Online in bankruptcy court instead. I fail to see what Apple would gain by buying Blockbuster as a whole. Blockbuster has a tremendous amount of debt and substantial lease payments. Their debt is rated junk and the company is expected to hemorrhage cash for the foreseeable future. They've typically run with a 10% profit margin, if 10% of their traffic moves away, then because of their high fixed cost, stores start slipping into the red. Given that Netflix alone has 10% market share in many cities, Blockbuster is not in good shape. Add to the iTunes Video, Comcast On Demand and TiVo and all of a sudden things look even worse for the stand alone video store.
Cringely's talk of a partnership would make sense on some level, but Apple would be very foolish to try and take on Blockbuster's problems now. The real power of what Cringely is talking about lies in the DVD Kiosk business model. By allowing downloadable movies and burn on demand DVD titles, you could literally fit a video store in every bar, coffee house, fast food restaurant, movie theater, supermarket, gas station . . . . DVD Station is currently selling PSP titles, but nothing for the iPod. Redbox just quit testing a download kiosk after finding the Hollywood was too cold to the idea just yet. There are still significant challenges to be dealt with but someday we'll have a Video Store at every Supermarket, Gas Station, ATM Machine, Fast Food Restaurant . . . . - RstyShackleford, on 10/12/2007, -1/+3Cringely is just trying to outcrazy Dvorak. I'm not sure who's currently in the lead.
- kdivad, on 10/12/2007, -0/+1Why do people suggest Apple buy every failing business?
- skunkman62, on 10/12/2007, -0/+1"Stupidest idea EVER." - nidude
i thought it was the 8 track. - KissTheRing, on 10/12/2007, -0/+1UMD is going the way of another Sony media format, the mini Disc
http://www.engadget.com/2006/02/16/breaking-news-sonys-umds-arent-selling-well/ - enzomedici, on 10/12/2007, -0/+1Apple should just put the movies on the iTunes store and put Netflix out of business too.
- kolop1, on 10/12/2007, -0/+1 What could Apple do to turn a profit now. I don't think it is a good idea to buy this sinking ship.
- jayhawk88, on 10/12/2007, -0/+1You know I seriously think that Apple has a side business going related to acquisition rumors. Think about it: they offer Company X a standard rumor package linking that company to a possible Apple buyout. Company X gets their names in the trade rags/papers for a couple weeks, if they're lucky maybe their stock gets a slight bump up during this time. All Apple has to do is ring up Dvorak or Cringley or whomever and get them to write an "Apple should/will/might buy Company X" article.
- moracity, on 10/12/2007, -0/+1What they should do is partner with NetFlix to acquire Blockbuster for the retail space and movie inventory. Since BB has no value, they should be able to do this for pennies on the dollar. A stock-only deal and BB debt is paid off.
The stores could then be converted to AppleFlix A/V stores/cafes. You can come in and purchase video or music and download it directly to your iPod, bring video in and make movies on beefy Macs. This could expose people who don't have Macs to OS X and get them to switch. I'm thinking along the lines of the old Kinkos stores, but cooler.
You can also drop-off or pickup your NetFlix movies. I am sure there are all sorts of things they could do. - Aslan72, on 10/12/2007, -0/+1It wouldn't be the first time Apple made a stuipid choice (I don't need to list them); they finally found their niche...they should just ride that out.
Taking on the Blockbuster real estate would be akin to the Germans invading the Soviet Union in WW2. It makes sense on paper, but the long term costs could hurt them.
We've been doing Blockbuster online and they're pretty much desperate now... - thehans, on 10/12/2007, -0/+0I don't think Apple would consider buying Blockbuster. What surprises is that Blockbuster hasn't got their ***** figure out yet. They could commit to the Netflix model and use their stores to an advantage. Why not integrate the two services. Blockbuster could have a huge advantage over Netflix if they let their mail customers pick up movies from there store and if that movie is out they can have it mailed to them. And if the customer returns the movie to the store Blockbuster immediately knows the movie has been returned and could then issue the customer's next movie in the que, in the store there or mail it to you. That way no time would be wasted waiting for your movie to return to the distribution warehouse in order for your next movie to be sent. With this model Blockbuster can issue a customer more movies/month than Netflix. Blockbuster may also have to consider lifting their ban on unrated and NC17 movies. Or if they really want to make money they could start carrying adult films with the 3 at a time business model. As of right now Blockbuster is *****. It's sweet retribution for all the years of ***** on their customers and taking over mom and pop video stores and stretching the term "new release" to include made for TV movies now being released on video.
- constantine11, on 10/12/2007, -0/+0This is a very interesting idea.
Apple won't buy Blockbuster or Blockbuster.com in bankruptcy because it doesn't need or want to take on the cost and burden of managing Blockbuster's thousands of retail stores. A partnership of this sort is a win-win. Blockbuster gets the honor of partering with the world's coolest company, streamlining its costs, and vaulting ahead of NetFlix by offering a lower cost means of delivering film (and other digital content) to the masses.
From Apple's perspective, they now lower the hurdle for buying iPods. No computer and no internet connection needed. Instead, you can drive to your local Blockbuster, which has eliminated most of its shelved products, has one or two employees to help you navigate the kiosk system (kind of like a digital ATM), and download super-fast thousands of movies for maybe $3.00 a pop or a subscription fee (a la Netflix).
The iPod is the razor; the content is the razorblade. The content producers are not best served by distributing the content on their own because most users won't know (or care) that New Line distributed some movie. So they won't go to New Line.com. But they will go to a digital media aggregation point like iTunes or Blockbuster stores to find whatever they want.
Imagine co-branded kiosks in airports. Sync up your iPod before boarding your flight with any movie in Blockbuster's catalogue. Perhaps even pay $15 for a 24-hour license to see that movie that just came out this weekend.
This is so cool!! - Legion303, on 10/12/2007, -0/+0***** Blockbuster.
- inactive, on 10/12/2007, -0/+0Why should Apple get into the rental business? iTunes is doing too well right now.
Unless the buy the company, close it down, and use the retail space to open a few hundred Apple stores. - starmanjones, on 10/12/2007, -0/+0no.
- spamdies, on 10/12/2007, -0/+0i really hope not, if apple bought blockbuster, I would have to find a new place to rent movies.
- junesix, on 10/12/2007, -0/+0I really don't understand this thing with Cringely. What is his purpose at PBS? He makes absolutely insane speculations based on few or completely inaccurate facts and does nothing but stir up irrational controversy and flame discussions. Is this I, Cringely shtick a scam to direct traffic to PBS? I don't know of a single person in the tech industry that trusts anything he says or doesn't think he's the biggest idiot pundit. Is he just a SEO mechanism for PBS? Every time he writes an article, I can't but think he's someone that was roped over from National Inquirer to apply the Jesus-face-found-on-piece-of-bread-doomsday-is-coming style of sensationalistic writing to tech on the PBS website to give it some "cred." My god this guy is unbelievable.
- costoa, on 10/12/2007, -0/+0There's a DNR order on Blockbuster that should honored. =) They've pissed off most of their customer base with stupid fee structure and now they're stuck with a bad business model that's dying. Their name can only bring down Apple's reputation. I say let them pass into that good night and let them be nothing more than a bad memory ...
- starmanjones, on 10/12/2007, -0/+0>I really don't understand this thing with Cringely.
i think he has called his share correctly... maybe helped avoid some really bad things as they were shaping up. - kolop1, on 10/12/2007, -0/+0"Blockbuster seems like a poor strategic move for Apple. I think the idea has merit though. Imagine walking into an airport, check in, go get a bite to eat, make a few calls, and then before boarding visiting one of the Apple kiosks throughout the terminal, download a couple new releases, maybe last weeks episodes of Lost and 24, undock your ipod and get on the plane. Now just sit back and watch, and maybe with the right partnerships, you could a/v into your lcd display and watch it on a larger screen. Seems like the model is here, just not through BBuster."
You can all ready do this from home. Why would I need a kiosk? - System84, on 10/12/2007, -0/+0Bah Whatever
- diggnationdevon, on 10/12/2007, -0/+0I think they should. iTunes would be even more superb
- bookishboy, on 10/12/2007, -0/+0I won't be sorry if Blockbuster closes up shop. When they came to my area for the first time some years ago, there was already a great (and large) video store in my area. Blockbuster opened up deliberately right across the highway from them. The owner of the first video store tried to set up a talk with them, something to the effect of "Look, it's a big enough area. Do you have to open right across the street from me? There's plenty of room around for both of us." The mid-management folks told him straight out that they were going to run him out of business in a year. Actually it took more like two or three, but they were right in the end. The other store isn't there any longer, just BB. ***** 'em. I get my movies from Netflix.
- zbeast, on 10/12/2007, -0/+0Why in the world would you want to buy an unpopular dieing business and business model?
If Blockbuster is not killed off because of netflix and other mail DVDs services.
There are other arrows flying at it to join the ones already sticking out of it's back.
Video on demand cable,Video on demand satalight, IPTV, File Trading, Pay-download, Low Cost DVDs, Internet stores, your local market that rents videos.
There lunch is getting smaller and smaller. Blockbuster is even cutting off it's own food by offering low or no late fees. 75% more were made by charnging late fees.
Sometimes dead is better. movie: Pet Seminary - captainyes, on 10/12/2007, -0/+0Blockbuster seems like a poor strategic move for Apple. I think the idea has merit though. Imagine walking into an airport, check in, go get a bite to eat, make a few calls, and then before boarding visiting one of the Apple kiosks throughout the terminal, download a couple new releases, maybe last weeks episodes of Lost and 24, undock your ipod and get on the plane. Now just sit back and watch, and maybe with the right partnerships, you could a/v into your lcd display and watch it on a larger screen. Seems like the model is here, just not through BBuster.
- happbando, on 10/12/2007, -0/+0people buy netflix because they don't want to go anywhere. he said it himself. so why would they go to blockbuster? people who have ipods probably have broadband anyway.
- dignon, on 10/12/2007, -0/+0This is completely stupid idea. Blockbuster is dead. NetFlix is dead too. Even back in the early 90's when blockbuster was expanding like crazy, it was clear that our current media delivery systems are just a stop-gap to electronic delivery. Apple's got it dead-on, and now - finally - the internet and near ubiquitos broadband access has almost made it practical. Apple shouldn't touch those dinosaurs for fear of getting their filth on its hands...
- oxymoron69, on 10/12/2007, -0/+0the only reason to buy them is to exploit the name for online movie distribution to give the unwashed masses a fimiliar beacon 'to rent us up some movies'.
other than that, maybe they should give refunds for ***** movies too. - vlsi0n, on 10/12/2007, -0/+0Blockbuster = good Blockbuster ran by Apple = bad bad BAD shoot yourself bad. we don't need another QT AND iTunes crap packaging.
- Amplix, on 10/12/2007, -0/+0I like the Blockbuster into Apple Stores idea... I'd love to have an apple store a couple of blocks away :D
- nidude, on 10/12/2007, -0/+0Stupidest idea EVER.
- MindTrigger, on 10/12/2007, -0/+0
No. - j_bellone, on 10/12/2007, -0/+0I am pretty sure (even though that they probably do not want you to believe) that Blockbuster stores are a franchise like Mc Donald's, Subway, and Burger King. Simply becuase with any of their offers it always says "participating stores only" and because none of their stores are linked up sans membership identification (even that has only been the last few years). Other blockbuster stores do not know what you have rented at another store, and they also do not know if you have a "subscription plan" and thus cannot honor it (e.g. 3 movies out at a time for $24.99 a month, etc)l
- spadin, on 10/12/2007, -0/+0Dumbest idea ever... While Blockbuster might be in the gutter that doesn't mean Apple is going to get any great deal. The real estate alone would be in the millions to billions. Besides, who would build a chain of stores with only one product? (downloadable movies) Not to mention the floor space for Blockbuster stores is big... you don't need that much room for 'downloading stations.' If anything, Apple would make a test run of this in their Apple Stores before spending so much money on buying Blockbuster... I think this guy just likes his iPod video a little too much.
- ratioswitch, on 10/12/2007, -0/+0Not sure if anybody mentioned it, but if Apple did buy Blockbuster, I think this would be a great opportunity for Apple to convert Blockbusters into Apple stores. Apple would have to thin the Blockbuster herd a bit (and probably remove some of the square footage) to make it work, but it just might.
OR
Apple could kill BB altogether and put a DVD database list on iTunes Music Store (but call it the iTunes Media Store), and mail out DVD discs from each of their local "warehouses" a la NetFlix.
If Apple bought BB it would have to be after BB folded and Apple would have to get rid of all that blue and yellow too.
Hmmm, interesting ...
Hmmm, interesting. - DrEbola, on 10/12/2007, -0/+0Steve Jobs, a brilliant business man and scientist, should hire you cranks to give him advice. Really, you probably know better than Steve Jobs. Don't you think? Yeah! YEAH! SUCK M'DEAAAUUGHGH!!!
- jholdaway, on 10/12/2007, -0/+0Me thinks the poster of this article doesn't realize that apple provides digital content or proprietary software. A physical media content provider (like Disney who jobs is the primary shareholder) would do better for owning blockbuster. But Viacom tried that and it took them 4 years to get rid of the company. Time Warner or Direct TV would be the most likely candidates as they already have a partnership.
- MrManFitz, on 10/12/2007, -0/+0"Take your Video-out iPod to Blockbuster..."
WTF? Who in their right mind wants to drive their car to download a movie to their iPod? Clearly this guy doesn't understand where technology is headed. Let Blockbuster die a slow painful death. No Digg. - goldenstate, on 10/12/2007, -0/+0OK, major flaw in thinking:
The "42 Million" who don't have broadband, aren't going to have iPods, or Mac Minis to plug them into. This is an economic and adopter based fact. Nobody without broadband access is going to just have that kind of hardware around (or know how to use it, for that matter). The business model that this argument is based on is bogus, just like Blockbuster's.
Blockbuster has been mismanaged and misled for years, let's just let them die the death they had coming anyway. - SupaDawg, on 10/12/2007, -0/+0who rents movies anymore anyways? I had a netflix account, never used. Blockbuster & Rogers video accounts that I never use.
Rent movie - $6CDN
Buy DVD - $20CDN
I'll buy it thanks. - snarkey, on 10/12/2007, -0/+0
I agree with jeffbax, Apple is bringing the digital age. If people are willing to wait 24-48 hours for the next NetFlix DVD to arrive, why wouldn't people be willing to wait at least as long for a 2GB download? (Anyone care to estimate the download time over a DSL connection?)
If I can select a movie online in the morning, and have it all spooled up for me to watch that night, I'm sold. Price it something like Rent=$4.99/Buy=$14.99 with possible all-you-can-eat subscriptions for $14.99-$24.99. - JamesGHill, on 10/12/2007, -0/+0No digg. The logic behind the move doesn't add up when Apple already has an online distribution system (iTunes) already setup.
The question that should be asked is "If Bill Gates is the one calling out that there will be no more media wars after HD-DVD vs. BluRay, then why is Steve Jobs the one making money?"
James Hill - Boondoggle, on 10/12/2007, -0/+0What the world needs is a fast, reliable, easy to use, inexpensive 480p download service. iTunes is the best candidate.
- Deinonych, on 10/12/2007, -0/+0"And last year is the first time Netflix turned a proft?"
Looks like they've been profitable since FY 2003:
http://finance.yahoo.com/q/is?s=NFLX&annual - xxmahoneyxx, on 10/12/2007, -0/+0I worked for BB for a while and their business practices are definitely lacking. Be it staffing issues, inventory quantity and the times/dates they are open. I'm not a huge fan of Apple but they do provide alot of things to the tech world. This would be probably one of the hugest mistakes ever.....unless the just closed down all the retail stores and stuck to BB Online which is starting to grow hugely due to its promotions.
- suprfli, on 10/12/2007, -0/+0This would create an incredible market to compete w/Netflix while opening a whole new market run by a big company that has had success in contentdistribution in the past. Look what Apple has done w/music and now they've completely revamped the TV content market. PodCasts are great as well.
--
SouthBeachCasa
http://www.southbeachcasa.com - Sithlrd, on 10/12/2007, -0/+0This strategy wouldn't take in any Netflix subscribers (well not many) but it would absolutely save blockbuster's ass while injecting iPods into households that would otherwise never buy them.
The iPod would become the default home theater video player for the next 20 years.
"Is your iPod full of movies you've bought from Blockbuster? Buy a new MacMini with 500 gigs of storage and offload those movies to your home's media server!" - diggMacs, on 10/12/2007, -0/+0Apple should partner with someone who has a lot of locations and good broadband access if they want to make a kiosk system widely accessible--I think Starbucks/T-Mobile is the way to go.
If Apple is actually making an iPhone then they may partner with T-Mobile on the phone side, and part of the deal could be free/discounted Internet access for in-store Starbucks kiosks. Apple has a lot of leverage to make some interesting deals--anything is possible... - cameraman, on 10/12/2007, -0/+0Its hard to see why Apple would do something like this. Grant it, the abilitiy to go to a booth and downloand HD content onto a video ipod sound godd, but in the long term (all though not that long term) its a dead technology. Everyone knows the future is in direct downloads, and even if the idea took off it would crash within a couple of years. But then again, it would get Ipods into the hand of a lot more people, which would make it more convient for them to use the ITunes download service as it advances over the years.
- inactive, on 10/12/2007, -0/+0Oh Robert X. Cringley, you never cease to amuse me. You and your wild acquisition antics. I guess he calls his column "The Pulpit" for a reason.
This article still doesn't top his attack of the great big Google box / Google's own internet idea, though. (http://www.pbs.org/cringely/pulpit/pulpit20051201.html) That one's a riot. -
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