New Release Delays and Shortages at Blockbuster

A new trend seems to be developing at Blockbuster. Around February, finding new releases at least some Blockbuster stores became extraordinarily difficult. We are not talking normal shortages here. This is a stunningly low supply.

Last year, a customer could walk into a Blockbuster on a Tuesday night and almost always find the DVDs that came out that day. They would be gone by Thursday night, but they were still there on Tuesday. (New releases generally become available for rental on each Tuesday.) Now, the new releases are gone by Tuesday afternoon. Even after a particular title has been out for a week or more, the title will be completely gone or in very low supply. The odd thing is that the Blockbuster store may try to cover up the low supply by putting out dozens of those placeholders that look like the DVD jewel case. This could give the illusion that the store owns many copies of a title, but all of the copies are checked out. Given the low quantities of new releases in stock, and the unremarkable flow of customers, one might wonder if Blockbuster is actually purchasing very limited numbers of each title while pretending to have normal quantities in stock.

Now that is just one suspicious thing going on in some stores. Something far more serious also seems to be beginning. Since March, some new releases are not available at Blockbuster stores or Blockbuster Online. When questioned about why the new releases are not in stock, Blockbuster employees are claiming the titles are being held up by the studios, but this is very unusual. New releases for major movies almost always come out on time. It makes no sense that the studios would suddenly be incapable of delivering DVDs on time.

What makes more sense is that 1) Blockbuster's suppliers are withholding shipments because Blockbuster is not paying them quickly enough, 2) the studios are taking advantage of Blockbuster's weakened state and deliberately delaying shipments in an attempt to motivate consumers to buy new releases rather than waiting to rent them, or 3) the studios are offering price incentives that encourage Blockbuster to delay purchases of new titles.

At this point, the cause is completely unknown to the public, but something suspicious is going on at Blockbuster. Regardless, Blockbuster needs to remedy this supply problem immediately. One of the few benefits that Blockbuster has to offer its customers is having new releases the day they come out. Netflix and Redbox have already conspired with the studios to impose artificial release delays. If Blockbuster cannot have the movies before the competitors, there is no way Blockbuster can even think about being competitive.

Blockbuster's Blu-Ray Disc Rental Figures May Be Flawed

If you are a Blockbuster Online subscriber and you exchange your online rentals at stores for store rentals, you may have noticed that, sometimes, your store DVD rentals show up as Blu-ray discs in the At Home section of your Blockbuster Online queue. This commonly occurring error does not necessarily prove an inventory flaw; however, the error strongly suggests that Blockbuster inaccurately records some store DVD rentals as Blu-ray disc rentals.

If you do a lot of store exchanges and typically choose the DVD format, look in your Blockbuster Online rental history. There you may find several titles tagged with the [Blu-ray] tag. Depending on your rental preferences, you may notice that few or none of these supposed Blu-ray discs you rented from Blockbuster stores were really Blu-ray discs. They were just improperly tagged DVDs. Even more curious, this error seems to occur disproportionately often among new releases. Perhaps this is just a recent problem affecting only newer titles.

What is uncertain is whether or not Blockbuster is tagging discs inappropriately on purpose for some reason or if this is just another example of Blockbuster's incompetence. Regardless, many DVDs are being tagged incorrectly as Blu-ray discs in at least one system. If these errors are being carried over into other systems, such as the systems that provide data for inventory reporting and sales reporting, Blockbuster's numbers could be showing dramatically inflated figures for Blu-ray disc rentals.

There do seem to be stacks of unwanted Blu-ray discs just sitting on the shelves at Blockbuster stores. The excessive Blu-ray disc supply could stem from improper inventory reporting, or the improperly tagged discs could be concealing that Blu-ray discs are not terribly popular among Blockbuster store customers. Regardless, Blockbuster needs to get their act together and consistently tag DVDs as DVDs and Blu-ray discs as Blu-ray discs in all of their systems.

Imagine if you lost a store DVD that was electronically mislabeled as a Blu-ray disc. Would the store charge you the lower DVD price or the higher Blu-ray disc price? That could be an unpleasant surprise. If you lost the physical disc, you would have no proof it was a DVD, and you would be at the mercy of Blockbuster's inaccurate computer system.