With recent buzz about the bankruptcy of Blockbuster Video and the introduction of Netflix to Canada, one has to wonder if there is a connection. Are popular movie rental stores losing that many customers to streaming video sources?
According to management at a Blockbuster store in Lethbridge, there has not been a significant dip in business.
“We haven’t noticed a decline. One major difference between us and Netflix is that we carry new releases,” says Danielle Gibson, assistant manager of Blockbuster on Mayor Magrath.
Netflix, a digital movie database that customers subscribe to, carries endless amounts of feature-lengths, documentaries and television shows. However, the selections are considered to be older.
Blockbuster still has the advantage of being able to offer those new releases to customers and Gibson says this is generally what people come to them for.
She added a lot of their customers are less inclined to fuss with the digital requirements of having a program like Netflix.
“The majority are people who want new releases, but then, of course, there are those who just want to watch any movie and don’t mind that it’s older,” says Gibson.
She also mentioned a program Blockbuster now offers which is an unlimited rental system for the same price as Netflix. The plan allows customers to subscribe monthly and rent from their favourites section.
“It’s basically the same selection you would get on Netflix.”
This program was implemented last year and so far, it has been well received, according to Gibson.
Gibson added that the media reported on the state of the company has blown any competition between the two companies way out of proportion.
“Certain media depict this sort of battle between Netflix and Blockbuster. You see it especially with movie bloggers but there has always been competition. Pay Per View was around way before Netflix.”
Recent news releases say Blockbuster is in the process of settling payments to its bankruptcy lenders and has until Feb. 11 to present a plan of reorganization to U.S. bankruptcy courts as it fights to remain in business.