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Originally posted by: LegendKiller
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Originally posted by: spacejamz
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Originally posted by: LegendKiller
Typical FUDD. If people would have seen the CBS interview with the COO of Blockbuster and had not have just listened to ignorant FUDD, they would have realized the BBI is stocking BR *only* because they percieve the market demand as that right now. This is only driven by, according to the COO, the PS3 owners who prefer to rent rather than buy (further helping the case that HD-DVD is more for owners, not renters).
I love how you run around posting this ignorant crap without anything to back it up. On the other hand, it's a shame you do since you are killing the only open format out there.
Next time you want a region free HD media, let me know, because I know your BR won't play it while mine will.</end quote></div>
You can live in your little world of denial...check out the threads on this topic at AVS or the Highdef forums... Even some of the diehard HD DVD fan boys like you are realizing that yesterday was not a good day for HD DVD.
'Perceived' market demand??? do you know what the sales ratio of the rentals of blu ray vs HD DVD in those 250 pilot stores that have been offering high def disk since NOV of last year is? Blu ray was rented 70% of the time. Wow, that is eerily close to the 67:33 percentage that blu ray enjoys in disk sales over HD DVD this year.
The tide of the format war took a major turn yesterday...
In case you missed the press release yesterday, here is quote from one of Blockbuster's Senior VPs: "The consumers are sending us a message. I can't ignore what I'm seeing," Matthew Smith, senior vice president of merchandising at Blockbuster, told The Associated Press.
This is the reason why Blockbuster is not offering HD DVD in those 1,450 stores that will start carrying blu ray disks...
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Let me run you through this again.
1. Blockbuster has declining revenues. It declined 300m last year, 200m the year before. It lost 1.8bn over 3 years and only profited .7% last year.
2. Blockbuster is closing B&M stores left and right.
3. It's best competitor, Netflix, gained 300M (50%) in revenues last year.
4. Blockbuster's stock price is less than $5, while Netflix is at 25. Blockbuster's market capitalization is at 1.3bn while Netflix is at 900m.
What this tells you is that the stock market sees Blockbuster as a WORSE investment than Netflix. Despite Blockbuster having 5x the revenue as Netflix, it's valued LESS than Netflix. Technically BBI should be valued at 6bn market cap, if one were to extrapolate it's revenue proportion.
Essentially, everybody thinks BBI is a craptacular company whereby all brick and mortar business model is failing.
5. If the B&M model is failing, then what possible reason would there be for BBI to stock a lot of BR? That's the key, they are only stocking it in 25% of their stores. In that 25% they are stocking HD-DVD in 16%.
6. BBI is STILL stocking ALL HD-DVDs online. What this tells you is that they know that the next battlefront for rentals is not Brick and Mortar, but online.
7. If ALL of the above holds true, then we know that this announcement is actually a partial announcement for a failing business line from a company that is valued 30% less than it's competitor despite having 5x the revenue.
8. We also know that according to the BBI COO, BBI is only responding to renters. Ironically, you claim that this is a huge advantage. If anything it's only another abysmal failure. Movie companies are there to make money. THey make far less money on a rented movie than they do on a bought movie. According to the COO it's the gamers who rent, not buy.
Essentially, the PS3 guys with a piss-poor attachment rate are making less money for the movie companies than anybody else. While it may be seen as a make-up for poor ratio of sales to ownership, it only highlights the fact that the movie companies (and sony) won't make very much money with BR, especially considering the margins on the product being lower due to higher production costs.
This still gets down to the point that BR has 10x the adoption and barely holds a lead on anything.
I know that you have no sound rationale. You have no analysis. You have no facts. You have no capital markets experience, stock analysis, corporate analysis, nor do you have anything even remotely resembling an argument that you can use to defeat mine, since we have argued this over 3 different threads. I also know that you'll just label me as a spinster, but in fact you won't provide one iota of sound logic, as I have done above, to support your own assertions.
If anything, your the rubber stamping fanboi running around trying to prove some type of superiority with a paper tiger. Provide something of substance and then get back to me, otherwise your a marginal player, just like BLockbuster and PS3.</end quote></div>
Talk about ignorant. BB is only closing 100 stores a year. They are the non-profitable ones, which should be closed anyway. Yes the B&M market has shrunk, but very intense studies show most people by FAR still rent from stores and will continue to do this for the very near future. I know that geeks online will opt for the online rental plans, but the VAST majority of people are not internet geeks like us posting on ATOT. Get a clue, please. The B&M model is NOT failing. It is changing as the Internet expands, but the Internet is nowhere near the level of maturity needed to replace B&M. And the major problem with online-only subscriptions is not being able to get a movie on the spur of the moment when your friends or over, or you have a rainy family night. This is how a lot of rentals take place. So Netflix is an imperfect rental model.
