If you have been following Blockbuster in the news, you have noticed the bankruptcy talk is really heating up again. Frankly, it is stunning Blockbuster was able to survive all of the way through 2009, but they made it somehow. Well, it is 2010 now, and Chapter 11 seems like it could easily be in the cards for Blockbuster.
If you are a Blockbuster shareholder, you have probably been whimpering each time you have checked your portfolio during the last six years, but things can still get worse. If you are one of the unlucky investors still hanging onto Blockbuster shares, be aware those shares could possibly become worth absolutely nothing. If Blockbuster enters Chapter 11 bankruptcy, the common stock (probably the type of stock you hold) will be worthless. You will have no way to recover your money, and you will not be entitled to shares in the reorganized Blockbuster. In short, you, the common shareholder, will be left holding the bag (an empty bag). If you are concerned about losing 100% of your investment in Blockbuster, consult with your broker as soon as possible and explore your options. Maybe you can cash in those shares and have just enough money left for a few DVD rentals at that little, struggling independent video store in your town.
3/18/2010
Here We Go Again: The Shipping Upgrade Excuse Is Back
If you are experiencing extended shipping delays on your Blockbuster Online account and you contact customer service about the issue, get ready for one of Blockbuster's favorite excuses. When you complain about delays, Blockbuster is going to claim they are in the process of implementing upgrades to their shipping process.
There is nothing new about this excuse. Blockbuster used it for an inexplicably long period of several weeks during the fourth quarter of 2009. This supposed shipping upgrade never really improved delivery much, but it sure did seem to slow down shipping for a while.
Here is the deal. Blockbuster is supposed to ship DVDs to you when you have empty shipping slots in your queue. If they are making changes that are resulting in shipping delays, that is Blockbuster's problem, not yours. If Blockbuster cannot ship DVDs to you when they should, they must compensate you with a refund, coupon, discount, etc. If Blockbuster tries to hide behind the inadequacies of their own system, demand compensation from them. You have a right to it, and Blockbuster owes it to you.
There is nothing new about this excuse. Blockbuster used it for an inexplicably long period of several weeks during the fourth quarter of 2009. This supposed shipping upgrade never really improved delivery much, but it sure did seem to slow down shipping for a while.
Here is the deal. Blockbuster is supposed to ship DVDs to you when you have empty shipping slots in your queue. If they are making changes that are resulting in shipping delays, that is Blockbuster's problem, not yours. If Blockbuster cannot ship DVDs to you when they should, they must compensate you with a refund, coupon, discount, etc. If Blockbuster tries to hide behind the inadequacies of their own system, demand compensation from them. You have a right to it, and Blockbuster owes it to you.
2/09/2010
Easing up on the Throttle
Curiously, Blockbuster Online seems to have recently cut back on what had appeared to be a very aggressive system of throttling. The change seems to have begun near the beginning of 2010 and has continued to the present time. For whatever reason, Blockbuster appears to be easing up a bit.
This sounds like a positive story, but it is not. Blockbuster should not be praised for sending out DVDs in a reasonable timeframe. This is what they should have been doing all along. Praising Blockbuster for not throttling for a few weeks would be like praising a thief for walking out of a mall without stealing anything.
So, why would Blockbuster Online ease up on throttling their customers? At this point, the answer is unclear. It is possible they found themselves getting into legal jeopardy. Maybe too many customers were canceling their subscriptions. Maybe outraged customers were speaking out and tarnishing the Blockbuster brand. Who knows?
If you have noticed changes in Blockbuster Online's behavior during 2010, please post your comments below. More importantly, if Blockbuster Online is still throttling you, please let everyone know right away.
This sounds like a positive story, but it is not. Blockbuster should not be praised for sending out DVDs in a reasonable timeframe. This is what they should have been doing all along. Praising Blockbuster for not throttling for a few weeks would be like praising a thief for walking out of a mall without stealing anything.
So, why would Blockbuster Online ease up on throttling their customers? At this point, the answer is unclear. It is possible they found themselves getting into legal jeopardy. Maybe too many customers were canceling their subscriptions. Maybe outraged customers were speaking out and tarnishing the Blockbuster brand. Who knows?
If you have noticed changes in Blockbuster Online's behavior during 2010, please post your comments below. More importantly, if Blockbuster Online is still throttling you, please let everyone know right away.
1/30/2010
Blockbuster Underground Site Upgrade
To improve the overall experience for Blockbuster Undergrounders, Blockbuster Underground is currently in the process of incorporating several site upgrades. The appearance and functionality of the site will be going through some enhancements during the next several days. The full text of the original articles and comments from readers will be preserved and accessible as usual.
12/04/2009
How Blockbuster Is Throttling You to One Set of DVDs per Week
If you are a Blockbuster Online subscriber, you may have noticed a curious pattern of delays on your account. Sometimes, you will return a DVD to a Blockbuster store, and it will take a surprisingly long time to clear your queue. Often, you will have DVDs--that are apparently being processed--sitting in your queue for multiple days. Frequently, your DVDs will take days longer to arrive than they should have.
If these strange events are routinely occurring on your Blockbuster account, you are not just a random, unfortunate Blockbuster customer. You are most likely a victim of throttling. Blockbuster may be systemically limiting the number of DVDs you receive by employing a combination of delay tactics against your account.
Below is a summary of Blockbuster Online's more common throttling tactics. Each tactic creates only a small delay, but when Blockbuster uses two or more of these tactics together, they can easily place tight limits on the number of DVDs you can receive in any given month.
Delayed Store Check-In
If you are being throttled by Blockbuster, you may have noticed you can return a store DVD to a Blockbuster store, but it might not clear your queue for hours (or days). You may have noticed the returned store DVD almost never clears your queue in time for another DVD to ship that same day--even if you returned the store DVD as soon as the store opened. Blockbuster can use this delayed store check-in tactic to slow down your DVDs by at least one extra day.
Processing Delays
One of Blockbuster's favorite throttling techniques is the processing delay. Blockbuster may indicate they are processing your DVD for shipment, but they will actually not ship it out until the following day. Blockbuster just claims to be processing your DVD so you will be less likely to complain. If you do complain, they will just defend themselves by saying, "We are processing your next DVD. We will ship it as soon as possible."
How long does it take to process a DVD anyway? How could it possibly take a full day or more to turnaround a DVD? There is no legitimate reason for this type of delay. The purpose is to slow down your shipments by an extra day or an entire weekend, therefore decreasing the number of DVDs you can watch for your monthly subscription fee.
Long-Distance Shipping
If you are being throttled by Blockbuster, you may have noticed, when Blockbuster ships a DVD to you on a Monday or Tuesday, that DVD takes an extra couple of days to arrive. This is because Blockbuster is shipping DVDs to you from shipping centers far from your house. Blockbuster could be intentionally exploiting USPS transit times to ensure that your DVD takes longer to arrive at your house. Blockbuster pays the same whether they ship a DVD to you from down the street or 3,000 miles away. By shipping DVDs from remote shipping centers, Blockbuster can add days to your turnaround time and then blame USPS for the delay.
What This Means for You
By using a devious combination of multiple throttling techniques, Blockbuster has made it nearly impossible for throttled subscribers to get more than one set of DVDs in any given week. If you are being throttled by Blockbuster, expect to be hit with a variety of delays. No matter how quickly you watch and return your DVDs, it appears Blockbuster has stacked the deck against you. Blockbuster is simply not going to send as many DVDs to you as they should.
If you are a Blockbuster subscriber, know that you are dealing with a shady company that is willing to take your monthly subscription fee while providing very limited benefits. This is just what Blockbuster is doing to subscribers now. Imagine what other sorts of unscrupulous business practices Blockbuster will be employing in the future as this increasingly irrelevant company continues to lose market share to its competitors and finds it more difficult to generate enough profits to sustain its outdated and bloated business model. For Blockbuster subscribers, things are bound to only get worse from here on out.
If these strange events are routinely occurring on your Blockbuster account, you are not just a random, unfortunate Blockbuster customer. You are most likely a victim of throttling. Blockbuster may be systemically limiting the number of DVDs you receive by employing a combination of delay tactics against your account.
Below is a summary of Blockbuster Online's more common throttling tactics. Each tactic creates only a small delay, but when Blockbuster uses two or more of these tactics together, they can easily place tight limits on the number of DVDs you can receive in any given month.
Delayed Store Check-In
If you are being throttled by Blockbuster, you may have noticed you can return a store DVD to a Blockbuster store, but it might not clear your queue for hours (or days). You may have noticed the returned store DVD almost never clears your queue in time for another DVD to ship that same day--even if you returned the store DVD as soon as the store opened. Blockbuster can use this delayed store check-in tactic to slow down your DVDs by at least one extra day.
Processing Delays
One of Blockbuster's favorite throttling techniques is the processing delay. Blockbuster may indicate they are processing your DVD for shipment, but they will actually not ship it out until the following day. Blockbuster just claims to be processing your DVD so you will be less likely to complain. If you do complain, they will just defend themselves by saying, "We are processing your next DVD. We will ship it as soon as possible."
How long does it take to process a DVD anyway? How could it possibly take a full day or more to turnaround a DVD? There is no legitimate reason for this type of delay. The purpose is to slow down your shipments by an extra day or an entire weekend, therefore decreasing the number of DVDs you can watch for your monthly subscription fee.
Long-Distance Shipping
If you are being throttled by Blockbuster, you may have noticed, when Blockbuster ships a DVD to you on a Monday or Tuesday, that DVD takes an extra couple of days to arrive. This is because Blockbuster is shipping DVDs to you from shipping centers far from your house. Blockbuster could be intentionally exploiting USPS transit times to ensure that your DVD takes longer to arrive at your house. Blockbuster pays the same whether they ship a DVD to you from down the street or 3,000 miles away. By shipping DVDs from remote shipping centers, Blockbuster can add days to your turnaround time and then blame USPS for the delay.
What This Means for You
By using a devious combination of multiple throttling techniques, Blockbuster has made it nearly impossible for throttled subscribers to get more than one set of DVDs in any given week. If you are being throttled by Blockbuster, expect to be hit with a variety of delays. No matter how quickly you watch and return your DVDs, it appears Blockbuster has stacked the deck against you. Blockbuster is simply not going to send as many DVDs to you as they should.
If you are a Blockbuster subscriber, know that you are dealing with a shady company that is willing to take your monthly subscription fee while providing very limited benefits. This is just what Blockbuster is doing to subscribers now. Imagine what other sorts of unscrupulous business practices Blockbuster will be employing in the future as this increasingly irrelevant company continues to lose market share to its competitors and finds it more difficult to generate enough profits to sustain its outdated and bloated business model. For Blockbuster subscribers, things are bound to only get worse from here on out.
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