When was the last time you rented a video game from Blockbuster? What was the last film you rented there? I have fond memories of paying $100 deposit so that I could rent an N64 game console from BLOCKBUSTER. How many times have you strolled up and down the isles of BLOCKBUSTER VIDEO waiting for a loved one to JUST PICK A FUCKING MOVIE ALREADY!? er...you know what I mean. BLOCKBUSTER VIDEO is one of those stores where no matter which one you're in, it always felt as comforting as all the other BLOCKBUSTER VIDEOS. For over 20 years, BLOCKBUSTER VIDEO has maintained a relationship with its customers that helped entertain a majority of North Americans.
Blockbuster's story is an interesting one which I read about in a Newsweek article called The Rise and Fall of Blockbuster . Troubled by millions of dollars of debt since the 90's, this entertainment giant's story is about to come to an end as its debt reaches $1 Billion dollars (yes that's BILLION with a B). Over the past year, Blockbuster has been closing several stores as they're in dire need of financial capital. Unfortunately Blockbuster simply cannot keep it's head above water. Forced by the New York Stock Exchange, Blockbuster was delisted in July 2010. Huffington Post's article "Blockbuster Bankrupt: Video Chain Files for Bankruptcy" blames Redbox, iTunes and Netflix for crushing the Blockbuster dream. There's one major force that the article neglected to mention.
Piracy
What happened? Did consumers stop watching films? Was Blockbuster's model antiquated after so many years of success? Did competition drive Blockbuster into the ground? Obviously there are several answers to why Blockbuster failed, but I'm guessing that Blockbuster ignored the trends of consumers turning to the internet for access to the same content for better rates or even for free. Mix that in with the rise of illegal downloading services like Napster, Kazaa, Bearshare and todays torrent sites like piratebay.org , Torrentz, and Mininova. As these websites started popping up anti-piracy groups like RIAA and MPAA started suing piracy websites in the interests of keeping copyrighted content off of the internet, limiting free access by the average internet user. Prosecuting these websites to force them to shut down is quite a profitable industry. As the RIAA won victory over victory, random people were being summoned to court facing charges of copyright infringement and ordered to pay up to $9,250 per song!!! (Read more here.) Did suing random grandparents and children honestly make a difference in pirating? I would say that scaring the public by litigating everyone and anyone was a failure, however the RIAA has gained some wealth over the years.
The Pirate Bay's defeat came on April 17, 2009 after losing a court case vs the Entertainment Industry. All four defendants Peter Sunde, Fredrik Neij, Gottfrid Svartholm, and Carl Lundström were charged with "assisting in making copyright content available" via The Pirate Bay. Each had to spend 1 year in prison and was ordered to pay $905,000 in damages. A year later, thepiratebay.org is stronger than ever with over 4,300,000 users and still serving over 1 million pieces of content ranging from television shows, films, software, games, music and several other types of media (reference). SO what's changed? Absolutely nothing. Every day people are still using torrent sites as well as "illegal" websites that stream television shows as well as movies for free. They used to be fringe websites that popped up here or there, but now all you need to google is "WATCH" and NAME OF TELEVISION SHOW and you will be presented with a menu of options for streaming your favorite content "illegally". Does the Entertainment industry intend on shutting down every website that steams their copyrighted content?
No, they can't afford it.
Keep an eye on copyright laws changing over the years. I live in Canada, where are copyright laws are insane according to Michael Geist a law professor at the University of Ottawa where he holds the Canada Research Chair in Internet and E-commerce Law. Net Neutrality will be a hot topic over the next 5 years as it has been for several years already. This is where the "illegal" tv and film streaming sites will die. Torrent sites will also be impacted by anti net neutrality laws that govern each country. Imagine being slapped with a $9,000 fine for streaming television shows to your computer?
I have to admit, I have a guilty conscious now when "trying before buying". I've started to pay for my content via several channels:
iTunes -At 99 cents per song I pay for music that I want to exist in my iTunes collection. This is music that i will cycle on and off of my iPhone forever...so it has to be top notch.
Grooveshark - You can listen to almost any song, album, artist, even genre within seconds using Grooveshark's search engine. It costs $3.00 per month to use all features of this great site. You're able to create playlists of music that you did not purchase and play it from any computer or mobile device over the web. It's almost like having on-demand radio only you pay a tiny fee every month which goes back into the music industry.
Netflix - My new favorite website. Netflix's library offers over 100,000 TV and Film streaming to any device of your choosing. I've used Netflix on my laptop, iphone and even my Playstation 3. Sign up is breaze and they even offer you 30 days for free! Netflix will learn the types of films and shows you enjoy and offer recommendations based off of your viewing habits. All this could be yours for $7.99 per month UNLIMITED ACCESS.
Others
Maple Leaf TV - Access all Toronto Maple Leaf games from any computer live streaming over the web. Access tonnes of highlights and information about the team. This service is a bit pricy, but all things considered, $59.95 may be worth having access to EVERY Leafs game in HD, that is unless you're a Habs or Sens fan (booooo).
Gamefly - Video game rental service that ships video games to you in the mail. Keep the game as long as you want, even forever if you're willing to pay a bit more to own it. Once you are done playing the game, mail it back and Gamefly will mail you the next game on your waiting list. This is a great option if you're the type to play a game and then trade it in at your local EB or Gamestop.
Steam - Offers digital downloads of computer games on demand. Steam games are generally cheaper than the physical versions of the game found in your local computer shop.
Face it, we're all media whores, afraid of boredom but willing to pay what we deem fit. Stop pirating and start giving back via some of these web services.
Digital distribution is here to stay. We have so many different devices with digital shops demanding money now. iTunes, Xbox Live, PS3 Store, Netflix, and Steam are just a few examples of digital outlets nipping away at our wallets. How can you say no to such low prices to have on-demand service. DVDs won't be around forever, other than the onces collecting dust on your shelves. Perhaps this reality has finally sunk in with the BLOCKBUSTER investors and this is why we are witnessing the death of a multi million dollar video chain.
Good bye late fees, hello on-demand media.
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