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$1.93 -0.03 (-1.53%)
10/7/2008 10:16 AM

Blockbuster, Inc. (BBI)

CAPS Rating:
*

The Company is a global provider of in-home rental and retail movie and game entertainment, with over 8,000 stores in the United States, its territories and 22 other countries.

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17

Avatar streetshark (76.87) Submitted: 2/17/07 11:39 AM : Underperform Start Price: $6.59 BBI Score: 44.03

Blockbuster has been the subject of recent hype surrounding their Total Access offering. The recent stock price increases are nothing more than hopes of a turnaround that have not materialized into profits. They have a significant cost disadvantage in the market due to their brick and mortar infrastructure. The recent surge in subscribers will not equate to profitability. The whole movie by mail or store (in-store rental policies apply) business model reminds me of their last big offering. Anyone remember how the Blockbuster "No Late Fees" turned out?

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Avatar CaptFoolDawg (63.62) Submitted: 4/13/07 3:14 PM

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Oh, Oh, I know the answer to that.......the same way my local BBI store did......just quietly disappeared with no comment.

I agree Shark, these guys are in trouble.

CaptFoolDawg.

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Avatar dwot (100.00) Submitted: 5/02/07 2:31 PM

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It is about time this one came down.

One of the market forces that I think will completely kill this one is video-on-demand. I don't even have to leave my home to rent a video anymore.

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Avatar dwot (100.00) Submitted: 5/02/07 2:33 PM

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Amazing this one went up at all since the new year, when I gave it an under perform rating.

The new video-on-demand service that people are starting to get will kill this business. I do not have to leave my home to rent a video anymore.

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Avatar dwot (100.00) Submitted: 5/02/07 2:34 PM

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It seems a bug. My post completely disappeared. I reloaded the page, no reply. Put in a second one and the first one shows up...

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Avatar TMFBreakerDave (99.01) Submitted: 5/22/07 10:32 AM

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Shark,

Congrats. Nice timing. You have a 41 Score here so far, as I write. --David G.

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Avatar streetshark (76.87) Submitted: 5/22/07 11:55 AM

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Thanks...I knew the market would eventually recognize the smoke and mirrors

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Avatar billddrummer (82.76) Submitted: 7/30/07 6:27 PM

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Interesting how new technology obsoletes old delivery channels. From a person who doesn't have a computer at home, doesn't have cable, doesn't rent videos and doesn't have a big-screen TV, streaming movies via download is the next growth arena. With bandwith getting cheaper and cheaper, no one will need to look at a traditional DVD again, unless it's a specialty release, like the Close Encounters anniversary disc being released on Blue-Ray shortly. A BBI store near my office closed recently, even though it was across the street from a big apartment complex. Why? Most of the apartments have satellite or cable video-on-demand. Better selection, 100% convenience.

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Avatar SaySomThingOrDIE (< 20) Submitted: 10/07/07 4:23 AM

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Are sure about this?? I know for a fact that Blockbuster is closing only store that barely turns a profit, which is smart in the long run. I doubt Blockbuster will ever go out of business. The "brick and mortar infrastructure" may be out dated for this info/digital age, but it is expected to stay. The "Total Access" business model is very similar to Netflix, which will turn a huge profit over time. And now, Movielink, this model is expect to turn some heads. I'm guessing it will become Blockbuster's-on-demand-call. It could also be a strengthening model for most of the "brick and mortar infrastructure."
If Netflix did loose 1.2 million subscribers in the last 3 quarters to Blockbuster, this is definitely a force not to take lightly.

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