Urbana Blockbuster store to close in April
URBANA – The Blockbuster Video store in Urbana will close in mid-April, according to the company's corporate communications office.
Blockbuster Inc., which this week disclosed plans to close 609 of its 3,400 U.S. stores, wouldn't comment on the future of its Champaign, Danville and Watseka stores.
But it confirmed the store at 105 E. University Ave., U, will close in about two months. The Dallas-based company did not say whether the Urbana closing comes as a result of the mass shutdown or whether it had been determined earlier.
In an e-mail to The News-Gazette, the company said it is evaluating its stores "with a view towards enhancing the overall profitability."
As for whether any other area stores will close, Blockbuster said: "No decisions have been made at this time. Decisions will be made on a store-by-store basis over the next several months."
The Urbana store opened at that location in 1989.
Struggling to compete with newer video-distribution channels like Netflix and Redbox, Blockbuster filed for Chapter 11 bankruptcy last September, seeking to reorganize debts.
On Monday, it announced it was beginning a process to sell itself off, with most of its stores continuing to operate. Blockbuster plans to put itself on the auction block, with several of its large creditors teaming to make an opening bid.
Besides operating video stores, Blockbuster also has vending kiosks, offers by-mail subscriptions and has an online and digital business.
Ehh, this one isn't due primarily to the health of the overall economy. While the general economy and the recession certainly had an effect, the primary downfall of Blockbuster is an outdated business model. Too many people have moved to getting movies through Netflix or Redbox, or through streaming services that are often incorporated directly into their televisions or cable/satellite receivers. Why pay $5 to rent a movie from Blockbuster when you can rent it from your tv for the same price, or get a Netflix subscription for around $10 a month and watch all the movies you want online? Blockbuster tried to move into the streaming business, but they moved too late and Netflix had already established market dominance. Further, Blockbuster's prices compared to places like Family Video are much, much higher, driving away much of the remaining video rental demographic.
Movie rental businesses are dying as a whole. Take a look at Hollywood video or countless other chains. Blockbuster is no different. Companies that cannot adapt to the changing realities of 21st century life and commerce will die out. It's also not enough to simply adapt either, especially in a limited market. As Borders has shown, companies have to adapt and adapt quickly enough to be in a place to capture significant initial market share. Blockbuster and Borders didn't and now they're bankrupt.
Not the economy's fault. Blockbuster has made some poor business decisions.
Family Video has managed to stay open, 200 stores opened in last 2 years nationwide. They also have over 100 Mgr openings this year all over the country. They have new movies before RedBox, or Netflix or Pay Per View. Family Video has disc repair, the others don't. They ARE hometown people who get to really know the "clients".
Exactly! Where a FV opens there was once a Hollywood or Movie Gallery/Blockbuster who weren't using their community and opportunities for growth correctly. This last holiday season in my town FV gave more than 240 hams/turkeys to local families and of course they reward students with their report card A's and give deals every day for customers. Good business, they are doing it right! Blockbuster wants to blame redbox or Netflix but the truth is its a total cop out!
The business model they have has never worked. Blockbusters have closed well before Redbox or Netflix ever existed. Their high prices, horrible customer service and message to customers have put them in this slump. Privately owned Family Video has opened more than 100 stores over the past 8 months and have recorded record profits and increases year to year. There is a place for brick & mortar retailers if they are owned and operated correctly and efficiently, with good deals, strong values, and correct hiring choices. These are all areas in which Blockbuster has failed at well before the economy took a downfall.
Blockbuster business model has always been one of the most expensive rentals in the industry formulated to make the most profit possible. Their downfall came when they began charging massive late fees trying to lead the industry but ended in driving customers away to competition. They have never recovered because no one trust Blockbuster to not do the same thing again. Such businesses are not consumer friendly as they should be in a depression. Their greed has bit them in the azz and so they are being fed to the same beast they unleashed. Glad such a greedy business has fallen. America is and should remain a friendly, happy place to do business. Greed is not good.
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