Monday, February 15, 2010

Hollywood Video and Blockbuster Facing Challenges to Business Model

From our friends at the Council of Better Business Bureaus, comes this news that Hollywood Video is filing for bankruptcy, again. The gist of the article is that companies like Redbox and Netflix, that make movie rental as convenient as going to your mailbox or grabbing a movie along with a loaf of bread at the grocery store, are pushing traditional movie rental outlets like Hollywood Video out of business. Blockbuster is facing similar challenges to its traditional business model.

I grew up in the 80's and 90's and I have fond memories of perusing the new releases at the local video store on Friday nights with friends. With the latest titles lining the outside walls in alphabetical order, it was like a treasure hunt and we'd often spend an hour choosing the perfect movie for that night. Afterward, we'd head to someones home and watch the movie while downing unhealthy amounts of pizza and soda pop. Good times.

Fast forward 15 years and the dawn of the Internet, as well as the responsibilities that come with a job and a young family, has made the idea of spending an hour in a store that only rents movies seem like some version of Purgatory. I have too much to do and there are now much more convenient ways of getting the latest release onto my television or computer screen. Today when I look to rent a movie, I hit the Internet and search not only titles, but online reviews. In a matter of minutes I can find a movie sure to be entertaining that will fit the mood of my family. I can also then either reserve it online and have it delivered to my mailbox in a few days, or pinpoint exactly which kiosk in my zip code has that movie in stock. Or, if I choose, I can stream the movie onto my laptop computer and have it available in a matter of seconds. These are very good times.

So, how do you rent movies?

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