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*** GZFX: GameZnFlix, Inc. ***
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[QUOTE]Originally posted by thinkmoney: [QB] I dont understand why gzfx bashing when it probably is the best penny around. JMO. From another board... blockbuster does not plan on entering the online market until early next year. they may have a beta site, but they are not prepared to launch because they have a fundamentally different business model. blockbuster is a brick and mortar video/game rental chain. the reason blockbuster is in trouble right now has to do with the fact that they raised their late fees when the cost of operating all of their stores cut into their profit margin and they drove many of their loyal customers to local video/game rental stores, supermarkets, or just about anyone else who had a profitable business and could facilitate adding video and games to their current operation. what emerged was a fragmentation of the video and game rental market which led to the rise of netflix and others in the online industry. the problem blockbuster has now has to do the fact that their current business model stands in stark contrast to that of an online rental company. it is a 'catch 22'. if they draw people to their online site, they will be using their brand to summon these people to the online version of blockbuster and that is a problem because as they draw people away from their stores, losses will mount in their stores all over the country and the most they can do is react to it by closing stores and laying off workers. first, that doesn't go over well with the public. second, it's reactive, so they could actually create huge losses for the company by launching the online version. beyond those obvious problems, blockbuster's most direct competition is netflix which is a company that was built on the mistakes that blockbuster has made. many industry analysts think that this could be the end for blockbuster because there does not seem to be any good way to get out of their current dilemma. btw, have you been watching blockbuster vs. netflix on cnbc? if i had to make a choice between the two, i'll go with netflix.. that is, the company without thousands of stores and employees and no way to pay for any of it. [/QB][/QUOTE]
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