I was just looking through our Press collection of posts, and noticed that I never posted about one of our best events - Park(ing) Day, 2008. It’s now a couple of years old, but I still found the article in the Northcote Leader - have a look:

What a lot of work! I believe those lawn segments found a home as well.

The video store isn’t dying .. it’s just evolving

That’s from ‘New Recipes for Couch Potatoes’, Sun 21/11, in the Age’s ‘Living By Design’ lift out magazine. Glossy stock too! Click here to see a scanned copy.

Whilst we might not have got a mention by A Current Affair, The Age at least knows where its at.

Many thanks to Adam Turner for the mention.

Paul Uniacke of Blockbuster:

What does Telstra know about movies? .. what does Playstation know about movies? Blockbuster has been in the movie space for over 20 years …

Last week A Current Affair ran it’s once yearly infotainment special on the end of the video store. You can watch it here. Oovie took the spotlight as the latest challenger (pushing dispensing kiosks), with Redroom DVD much of the same. Quickflix get a mention and a raft of download options were given some time (t-box, appletv, fetchtv, sony playstation). A couple of omissions from their lineup - Bigpondmovies and x-box?

Paul Uniacke of FEG (Blockbuster/VideoEzy/EzyDVD) was given the last word. Walking around his showpiece store .. wow, does it look dated! Everyone can pick a service that suits them best, but the one thing that stands out against the modern challengers, is that Blockbuster really hasn’t changed in 20 years. That’s not all bad .. it gives great comfort to people who hate change. We’re conditioned to walking around shelves, and when I step inside an old school store, instinctively I flip into browse mode and begin that familiar old shuffle. Beyond the hype, old school rental still accounts for over 90% of Australia’s rental spend.

As for Paul’s belief that history/legacy gives him the advantage? Hmmm, perhaps not. I think I hear the echo of Nokia before Apple sat up and ruined their party.

Ok .. this is old news now.

Blockbuster filed for Chapter 11 Bankruptcy in the US on 23rd of September. Why? Because Blockbuster owed it’s debtors around 1 billion dollars. Yes that’s 1 billion. With the heyday of the local video store past, the industry rationalising, and a need to invest significantly to become a credible competitor to Netflix (in both mail-order and streaming capacities), Blockbuster found it’s debt too much, too crippling. They would never be able to repay it. If they closed shop - debtors and shareholders would lose everything, and Blockbuster would never have the chance to re-invent itself.

Filing for Chapter 11 Bankruptcy means that, as mediated by the US Bankruptcy court, debtors, shareholders and current management work out a way for all to go forward. With Blockbuster, debtors wrote down $900 million of their debt, basically assumed ownership, and Blockbuster survives to keep trading. They’re closing their non performing stores, will still run their strong stores, and continue with their kiosk/mail-order/streaming multi-channel strategy.

What a second chance! Now with only $100 million of debt, Blockbuster has a chance to re-construct itself. We’ll be watching to see how they go. As for Australia, Blockbuster is owned by the Franchise Entertainment Group, who run it alongside Video Ezy and EzyDVD. Here, we’re a fair way behind the massive rationalisation of local rental that has occurred in the states. The kiosk industry (RedroomDVD, Oovie) and mail order (Bigpondmovies and Quickflix) just haven’t been able to put the squeeze on local rental like their respective originators did in the US. Time will tell how it all plays out.