Stock Gurus, BBI time to get in? or too late? - GoFuckYourself.com

gleem · 01-05-2007, 07:48 AM

I see that Blockbuster finally figured out how to kill off NetFlix with their netflix style mail order that you can also bring into the stores and swap too. That is a NetFlix killer..

So I see Blockbuster is cheap compared to 2 years ago, but expensive compared to 1 year ago..

your thoughts? should I get in? For the record I am usually in long term or at least 1 or 2 years.

edgeprod · 01-05-2007, 08:09 AM

Quote:

Originally Posted by gleem

I see that Blockbuster finally figured out how to kill off NetFlix with their netflix style mail order that you can also bring into the stores and swap too. That is a NetFlix killer..

If you say so. I have both Netflix 8-at-a-time, and Blockbuster 8-at-a-time. Blockbuster has allowed me a bunch of "free" in-store rentals every month. Know how many I've used? Zero. The whole POINT of home-delivery for me is to have a very large selection (up to 16) at a time, so if there is a night I want to watch a movie (happens once per month or so), I have a TON to choose from. Only costs $100 for the convenience of having both.

Here's how it breaks down. Netflix has been accomodating when things go wrong (if a little rule), whereas Blockbuster has been NICE, but hasn't fixed any of the problems. Blockbuster is VERY slow to ship/change movies after receiving them (MUCH slower than even my "THROTTLED" NetFlix account), has a horrible interface, is very slow to adopt features, and seems like they have very little understanding of the Internet.

I wouldn't *personally* bet the long-term bank on BBI just yet, at least until they pick up some more savvy. However, perception is reality, and subscription rates (as well as market share) is really all that's going to matter. And there's always the possibility of a merger ....

gleem · 01-05-2007, 08:23 AM

good points, I used NEtflix from the time they opened in like 98/99 till last year. I quit cause they were slow to get my movies back and could never get any good new releases when they came out, so I would end up at BlockBuster renting em.. the only reason I didn't do more rentals at Blockbuster is because of "Late Fees", but they got rid of that, big step forward IMO for them.
I'm signing up for the online deal probably over the weekend, and the idea that I can get free in store rentals each month, or swap my "online" movies in store is a killer feature I think.

Regardless of all the online shortcomings their latest media blitz with online-or -in store returns will definately get em alot more online subscribers especially since I notice the employees at the stores are pushing the online deal alot harder now. I think they will have huge increases in their online subscribers next time they give up the numbers and the stock could easily hit 9 or 10. I think alot of old time investors pulled back a couple years ago cause they saw NetFlix pulling too many subscribers, but if they see a rise in BB subscribers and a slowing of NetFlix, they will settle back at their old comfy $10 range on BBI.

just my 2 cents

edgeprod · 01-05-2007, 09:19 AM

Quote:

Originally Posted by gleem

the idea that I can get free in store rentals each month, or swap my "online" movies in store is a killer feature I think.

Maybe, but remember that you still have to leave the house to do that -- most of us webmasters don't.

Quote:

Originally Posted by gleem

the stock could easily hit 9 or 10

Just remember that stocks that trade at that level may have a small market cap -- which can be wiped away completely in a delisting (if they drop too low off of that point) or a bankruptcy.

gleem · 01-05-2007, 10:28 AM

Quote:

Originally Posted by edgeprod

Maybe, but remember that you still have to leave the house to do that -- most of us webmasters don't.

right, but a good new sci-fi release that's backordered for mailing or a whiney girlfriend will get you off your ass quick.

Quote:

Originally Posted by edgeprod

Just remember that stocks that trade at that level may have a small market cap -- which can be wiped away completely in a delisting (if they drop too low off of that point) or a bankruptcy.

I dunno, Block buster has a decent cap, and I doubt they are going away soon, even if they do they will surely just get boughtout. win-win in my very limited market knoledge.. the only risk with them is if the whole online deal fails miserably, which I don't think it will, many newbies on the net I know, especially girls I know signed up for Blockbuster Online and have no clue who NetFlix is.

gleem · 01-05-2007, 10:49 AM

ha, and they just posted this a little bit ago after my in depth analysis:

Quote:

Left for dead by some observers a couple of years ago, Blockbuster Inc. showed this week that it may be figuring out the online DVD rental game by using it as an added-value proposition for its in-store customers.

Dallas-based Blockbuster (BBI: news) took a number of analysts by surprise Wednesday when it revealed that it picked up 700,000 online subscribers in the fourth quarter, after relatively modest online customer growth during the first nine months of 2006.

This surge was largely attributed to Blockbuster's Total Access service, launched in November. Total Access allows its online customers to either return DVDs through the mail or exchange them at a store in exchange for free in-store movie rentals.

The offer is similar to free rental coupons Blockbuster had offered subscribers, said Michael Pachter, an analyst at Wedbush Morgan Securities. However, turning in a disc at the store in exchange for a free movie is a much simpler transaction because nothing has to be printed out, he said.

"I thought that was clever, but I didn't think it would have such a dramatic effect that subscriber additions would jump from 200,000 a quarter to 700,000," Pachter said.

Blockbuster Chief Executive John Antioco said consumers are realizing they can have the best of both worlds with Total Access. "The No. 1 factor is convenience," he said in an interview. "You never have to leave your house to get a movie, but if you want to have immediate gratification, you have immediate access to a Blockbuster store."

While some have questioned the depth of Blockbuster's selection, particularly in comparison with rival Netflix, Antioco points out that his company's online catalog now has 65,000 titles to choose from, offering plenty of variety for most consumers.

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01-05-2007, 07:48 AM	#1
gleem Confirmed User Industry Role: Join Date: Jun 2001 Location: Sunny Land Posts: 5,593	Stock Gurus, BBI time to get in? or too late? I see that Blockbuster finally figured out how to kill off NetFlix with their netflix style mail order that you can also bring into the stores and swap too. That is a NetFlix killer.. So I see Blockbuster is cheap compared to 2 years ago, but expensive compared to 1 year ago.. your thoughts? should I get in? For the record I am usually in long term or at least 1 or 2 years. __________________ Contact me: \\// E: webmaster /at/ unprofessional.com

01-05-2007, 08:23 AM	#3
gleem Confirmed User Industry Role: Join Date: Jun 2001 Location: Sunny Land Posts: 5,593	good points, I used NEtflix from the time they opened in like 98/99 till last year. I quit cause they were slow to get my movies back and could never get any good new releases when they came out, so I would end up at BlockBuster renting em.. the only reason I didn't do more rentals at Blockbuster is because of "Late Fees", but they got rid of that, big step forward IMO for them. I'm signing up for the online deal probably over the weekend, and the idea that I can get free in store rentals each month, or swap my "online" movies in store is a killer feature I think. Regardless of all the online shortcomings their latest media blitz with online-or -in store returns will definately get em alot more online subscribers especially since I notice the employees at the stores are pushing the online deal alot harder now. I think they will have huge increases in their online subscribers next time they give up the numbers and the stock could easily hit 9 or 10. I think alot of old time investors pulled back a couple years ago cause they saw NetFlix pulling too many subscribers, but if they see a rise in BB subscribers and a slowing of NetFlix, they will settle back at their old comfy $10 range on BBI. just my 2 cents __________________ Contact me: \\// E: webmaster /at/ unprofessional.com