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If Blockbuster survives, it won’t be because of me.
The last time I rented a movie from the ailing video chain was probably about five years ago. And no, I haven’t been boycotting out of any high-minded commitment to the mom-and-pop independents that Blockbuster slew by the dozens during its unstoppable expansion in the past two decades. I appreciate local businesses as much as any Salon reader, but what soured me on Blockbuster was something a little less idealistic: Every time I rented something there, I forgot about it, keeping the movie out a day or two too long, which racked up a big bill when I finally did bring it back. The late fees, in the end, were what drove me away. If the chain does stay open, I probably have to pay it $20 from some long-returned DVD before it’ll let me take out another movie. (It wasn’t just me, either; in 2005, the company had to settle a lawsuit over automatically charging people the full replacement cost of a movie if they kept the discs out for more than a week, and then charging a $1.25 “restocking fee” to anyone who brought back a movie Blockbuster had declared lost.)
On the one hand, at least it had the decency not to send a collection agency after me for its completely arbitrary penalties. On the other, if it’s listed all the penny ante debts its former customers theoretically owe it as assets on its balance sheet, its financial state is probably worse than Wall Street realizes.
What’s happening to Blockbuster now is, of course, the perfect capstone to its history. The company is trying to restructure more than a quarter-billion dollars in debt and fight off challenges from upstart competitors in a changing industry — much the way it menaced little players in market after market when its stores oozed out of Dallas to cover the map. (In the Washington area, Blockbuster bought up local VHS rental empire Erol’s Video in 1991.) Blockbuster burst out of the Sun Belt and devoured its competitors without pausing, as Wayne Huizenga, the man behind garbage titan Waste Management, used the same overall strategy to push Hollywood’s trash as he had used to gobble it up from the rest of the country at his first business. There wasn’t a suburban strip mall or a gentrified city neighborhood in America that didn’t wind up with a Blockbuster outlet.
And now that the once-mighty chain’s existence is threatened, it’s hard to come up with much nostalgia on its behalf. Walking into a Blockbuster, even in its glory days, meant you hadn’t managed to come up with anything more exciting to do that night than rent some mainstream Hollywood crap you somehow missed in the theaters. “Make it a Blockbuster night” may have been its marketing slogan, but somehow the vibe in the place made it feel like nothing more than a clever way to say “Admit defeat, loser.” Every one of the stores was, and still is, exactly the same: all electric blue and canary yellow, with dizzyingly bright walls, trailers for months-old action flicks playing loudly on overhead TV screens and a few surly employees behind the counter. In a pathetic attempt to be an all-in-one supplier of an entire night’s entertainment, the stores throw some popcorn, candy and soda for sale near the checkout line.
Blockbuster presented customers with a binary choice: Breeze through the shelves with a handful of new releases, or scour a sorry back catalog collection for something — anything — you hadn’t already seen. Home from college in the mid-’90s, I remember wandering through one local Blockbuster (there were three within a 10-minute drive of my parents’ house) looking in vain for the third shelf of what turned out to be a two-shelf documentary section. The chain may never have actually censored movies, but its family-friendly public image was so stodgy that no one had trouble imagining it did (“We have heard that for years,” a corporate flak told Salon a couple years ago), and its available titles stuck pretty carefully to the less objectionable areas of the MPAA ratings. The chain left the indie and foreign films to the few brave independent stores it hadn’t pushed out of business, stocking dozens of copies of the big studios’ new releases and purging most movies out of circulation within a year or two. But even if you found something you could settle on renting, it wasn’t easy: At least back then, you couldn’t check out a movie without having your membership card with you. And the card was slightly bigger than a credit card, so it didn’t fit neatly into a wallet.
Still, Blockbuster came to define the very essence of movie rentals. With 7,400 stores around the world, it wasn’t hard to see how. One competitor, Hollywood Video, even seems to have copied its color scheme wholesale, as if it’s simply impossible to imagine a video store done up in anything other than blue and yellow. Which is why the prospect of a Blockbuster bankruptcy says more about the industry than the company.
Yes, the chain may have been late to realize the threat Netflix posed when the mail-order business started up a few years ago, or, more recently, the threat Redbox’s $1-a-night DVD vending machines were becoming. And yes, its stores are run badly enough to have spawned an entire subdivision of the Internet dedicated to bashing the company. But its plight today doesn’t seem like a management problem so much as it does the inevitable result of a paradigm shift in the way Americans consume entertainment. The company saw its revenue decline steadily over the last few years, from over $5.7 billion in 2005 to $5.2 billion last year, and it’s lost $800 million in the process — about half of it just in the last year. Meanwhile, Netflix took in $1.3 billion last year, reporting an $83 million profit. A recent report by industry newsletter Adams Media Research predicted brick-and-mortar video stores would only account for 48 percent of all rentals four years from now, as mail-order and Internet business overtakes them.
For Blockbuster now, as for its competitors back in the day, resistance is futile. Except if you clicked on that link, you’re actually part of the problem. Why go to a soulless corporate video store when you can watch whole movies instantly on your computer, rent them by mail or order up new releases on demand through your cable company? If Blockbuster goes under, it’s hard to imagine the executives at West Coast Video, Suncoast Video or any of the other remaining chains will sleep easily. Meanwhile, the local mom-and-pop store in my neighborhood appears to survive mostly because its pornography section is as large as the rest of the store. But even if that business model means it outlasts Blockbuster, it doesn’t seem like a winner in the long run; after all, the only stuff you can find on the Internet more easily than pirated copies of Hollywood movies is free porn.
So whether it’s bankruptcy now or bankruptcy soon, it seems safe to say a preemptive “Goodbye, Blockbuster.” And no — I’m not sending you my new address so you can bill me one last time for those late fees.
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Friday, Jun 11, 2010 8:01 PM UTC
Thanks for reading over the last two-and-a-half years -- today's my last day at Salon
By Mike Madden
Topics: War Room
Salon's Mike Madden watches Barack Obama bowl, not very well, during a campaign stop in Altoona, Pa., during the 2008 presidential primary.
The day after Christmas 2007, I caught a flight from Washington, D.C., to the Midwest, and made my way through the snow to watch Hillary Clinton address a crowd in a packed high school gym in Mt. Pleasant, Iowa. And thus began my career at Salon, and my close-up view of an astounding presidential campaign. The primaries alone took me from Salt Lake City to San Juan. (I even got to watch Barack Obama bowl, badly.) Once that was done, the general election managed to match the primaries for excitement, innovative campaign techniques and unusual venues. Not to mention plenty of chances to write about Sarah Palin.
Yes, I spent the historic 2008 Election Night at a golf resort in Phoenix and missed the parties in the street back home in D.C. But that’s alright — once Barack Obama had won, there was more news to come. I met Orly Taitz, and saw the first signs of stress appear in the relationship between progressives and the incoming White House. The new administration got moving quickly, and the conservatives were already starting to get a little freaked out (not least because the Republican Party was suddenly in the hands of Michael Steele). Between Tea Partiers and the endless healthcare reform debate, 2009 flew by. And suddenly, another campaign is in full swing.
But this time, I won’t be around to chronicle the rest of it on Salon. Today is my last day here; in two weeks, I start a new job as managing editor of Washington City Paper, an alt-weekly I’ve been reading for 20 years. As you may have gathered if you read any of the various posts and stories about D.C. voting rights that Salon’s editors indulged my desire to write, I consider myself a bit of a D.C. nationalist — my dad’s family has lived here for three generations, and I grew up in the area and have been back for a decade now. So the chance to help shape coverage of the city and region I’m so proud to call home was irresistible. (Besides, if I wasn’t leaving voluntarily, I’d probably manage to get myself fired over the next couple of weeks for ducking out of work too often to watch the World Cup.) At least in this new job, I should be safe from Andrew Breitbart’s rage.
It’s been a thrill, and a privilege, to write about these last few crazy years in national politics and government here. My colleagues at Salon are smart, funny, creative and supportive, and working with them has been a blast every day. And you, our readers, always keep the staff on our toes, sending complaints, ideas and — occasionally — compliments over the transom on just about every story. I’m happy to be joining you again as a consumer of Salon’s brilliant writing, just as I was when the site first started (though, fortunately, I no longer need to depend on a 14.4k modem to do it).
So thanks for letting me be your guide through the last two-and-a-half years of politics. (You can still keep track of me on Twitter if you feel the urge, and of course, I hope you’ll check out what we’re doing at City Paper, even if you don’t live near the District.) And for now, so long.
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Wednesday, Jun 9, 2010 10:10 PM UTC
The California Senate race gets off to an awkward start, as the Republican mocks her Democratic opponent
By Mike Madden
Topics: 2010 Elections, Barbara Boxer, D-Calif., Carly Fiorina, War Room
Sen. Barbara Boxer (D-Calif.) on June 3.
If the first day was any indication, the California campaign between Democratic Sen. Barbara Boxer and Republican ex-CEO Carly Fiorina is going to be nasty.
Fiorina was caught on an open mic and camera feed Wednesday, mocking Boxer’s hair. A friend of Fiorina’s, it seems, had seen Boxer on TV earlier in the morning. And she “said what everyone says,” Fiorina blurted. “God, what is that hair? So yesterday!”
That’s about four minutes into the video. Boxer shouldn’t feel too bad, though, because Fiorina spent the vast majority of the time the camera was rolling bashing her fellow Republican, Meg Whitman, for going on Sean Hannity’s Fox News Channel show on the first day of the general election campaign for governor.
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Wednesday, Jun 9, 2010 10:01 PM UTC
Goldman Sachs, UBS and JP Morgan all predict a quick exit for the U.S. in the big soccer tournament
By Mike Madden
Topics: Bank Bailouts, Goldman Sachs, War Room, World Cup
U.S. national soccer team midfielder Landon Donovan, right, speaks as coach Bob Bradley, left, looks on during a news conference in Irene, South Africa, Wednesday, June 9, 2010. The U.S. team is preparing for the upcoming World Cup, where it will play in Group C. (AP Photo/Elise Amendola)(Credit: AP)
Destroying the global economy and plunging the world into recession is one thing. But now Wall Street has gone too far.
Preparing for the World Cup, three big banks issued data-heavy reports predicting which nation will bring home the trophy (Update: That trophy is no longer named for Jules Rimet, as this post originally stated): UBS, JP Morgan and Goldman Sachs. And none of them show much love to the United States — no matter how much Washington has agreed to help them stay on top of global commerce in the wake of the economic collapse.
The recipient of $25 billion in TARP funds in 2008, Morgan is by far the worst offender. Its guide to the tournament, produced by the bank’s “quants” (yes, that’s the same term used for the math wizards whose models utterly failed to predict the collapse of the housing market), expects the U.S. to lose to England on Saturday, follow that up with a loss to unheralded Slovenia on June 18, then finally salvage some pride with a win over Algeria on June 23 — which would be too little, too late to advance to the tournament’s knockout stage. And just like that, the Yanks would head home, losers, along with the likes of New Zealand, Paraguay and North Korea.
Goldman’s team, in its report (PDF), wasn’t that much more generous to the nation that’s treated the firm so well over the years. “Group C looks very friendly to England, and in an effort to help boost the game in the U.S., let’s assume they come second!” the Goldman analysis says. “Both Algeria and Slovenia may have good grounds to question this.” In other words, the bank doesn’t really expect the U.S. to advance to the round of 16, but since this whole thing is just a silly exercise designed to get them publicity (you’re welcome, Goldman), the writers threw U.S. Soccer a bone. Then again, while Goldman did get $10 billion in TARP funds a couple of years ago to stay in business, it’s had a more tumultuous relationship with the government since then. Maybe if the SEC hadn’t sued the bank, they would have picked the U.S. to win it all!
Meanwhile, the Swiss bankers at UBS — who didn’t take any money from the U.S. government (but did get a bailout from their own taxpayers) — appear to predict that the U.S. will, at least, advance from the group stage to the single-elimination round. (Though only barely, and their chart ranks South Africa, Mexico, France and Uruguay — who can’t all make it, because only two teams from their common group will advance — as likelier to move on.) But they give the U.S. less than a 13 percent chance of winning their first knockout game, in which the Americans would likely face Germany.
Yes, I realize I’m taking these predictions more seriously than they’re intended to be taken, and that the reports are — as you might expect for a research document prepared by investment firms — larded up with disclaimers about past performance and statistical models being no guarantee of future returns. Still. This is the World Cup! It’s serious business! And for these Wall Street bankers to blithely write off the U.S. cause as hopeless — or worse, as Goldman does, a charity case — is downright un-American.
So if they don’t like America, which nation’s citizens do these cold-hearted bankers think will be dancing in the streets after the July 11 finals? UBS picked Brazil, five-time winners already. Goldman put Brazil in the final — but in a rare nod to style over mathematical models, picked Spain to beat them: “Here we are going to go against history and stick with flair.” And JP Morgan, picking Slovenia to make it all the way to the semifinals after edging out the U.S. for a spot in the knockout rounds, predicts England will beat Spain — on penalties — for its second-ever World Cup title. (For what it’s worth, I don’t expect the U.S. to win the tournament; I do expect them to advance to the second round, behind England, and maybe win another game if they get lucky. Spain will probably win, which would be fine with me, but I’m really rooting for Argentina, and I wouldn’t mind the Netherlands winning, either.)
These reports, then, should give anyone in America plenty of motivation to watch the U.S.-England game on Saturday: Not only is the U.S. the underdog, but Wall Street is rooting for the English. No, an upset win this weekend won’t fix the economy and undo the damage years of corporate influence have had on our politics. But it might help humble some smug bankers somewhere. And if that’s not a victory, what is? U.S.A.! U.S.A.!
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Wednesday, Jun 9, 2010 5:44 PM UTC
The once (and future?) GOP presidential candidate cuts a $5,000 check to the Nevada Tea Party favorite
By Mike Madden
Topics: 2010 Elections, 2012 Elections, Mitt Romney, Sharron Angle, War Room
Sharron Angle and Mitt Romney
Mitt Romney knows how to pick a winner. Especially after the winner has already been picked by the voters. So sure enough, this afternoon brought news that he has taken a side in the Nevada Senate race.
Romney sent Sharron Angle, Harry Reid’s new opponent (and, possibly, political savior) a $5,000 check from his PAC, the maximum donation allowed by campaign finance law. He also endorsed Brian Sandoval, after he knocked off Gov. Jim Gibbons in a GOP primary. ”Instead of focusing on turning our economy around and fostering job creation and economic growth, too many of our leaders are instead focused on growing the size of government,” Romney said in a statement. “That is why Nevada is fortunate to have leaders like Brian Sandoval and Sharron Angle, who will work to get our economy back on track.”
With the 2012 Republican presidential primary set to start on Nov. 3, the day after the midterm elections, Romney has been busy endorsing candidates all over the country, and especially in early primary states like Nevada. Last night was a good one for one of his picks, Nikki Haley, who fell just short of winning the GOP gubernatorial nod in South Carolina and seems sure to win a runoff. But Romney hadn’t gotten involved in the Nevada race up to now — which was probably wise, since the GOP establishment backed loser Sue Lowden, and endorsing Angle before she won the nomination might have made Romney look a bit too enthusiastic about the Tea Party set.
Still, it’s not exactly a profile in political courage to endorse your party’s nominee against the very vulnerable sitting Senate majority leader. Romney took a similarly bold stand in the Florida Senate race a week before Gov. Charlie Crist quit the party — and well after it was obvious that Rubio was going to wipe the floor with Crist if he stayed in. Those risk-averse political instincts, though, could help Romney win the nomination as the safe choice this time around. After John McCain in 2008, Republicans have probably had enough of self-styled mavericks.
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Wednesday, Jun 9, 2010 4:01 AM UTC
It will be the Tea Party favorite vs. the Senate majority leader
By Mike Madden
Topics: 2010 Elections, Harry Reid
Sharron Angle
Have Nevada Republicans just seized defeat from the jaws of victory?
Facing Harry Reid, a Senate majority leader even more vulnerable than Tom Daschle was six months before he lost his reelection race in 2004, the party opted Tuesday to nominate, as their champion, Sharron Angle — a little-known, poorly funded Tea Party favorite who might make Rand Paul look experienced and polished. She wants to abolish Social Security, phase out Medicare, once said alcohol should be illegal and whined in April that she couldn’t bring her guns to Washington.
Then again, the folks Angle beat to win the nomination weren’t exactly world class politicians, either. Establishment pick Sue Lowden — who Tea Party activists in Nevada hated because, as party chairwoman, she had dared to cross Ron Paul during the 2008 presidential primary campaign — was leading for months. Until she collapsed suddenly, after babbling about people bartering chickens for healthcare and drawing legal challenges over a campaign bus. Businessman Danny Tarkanian never managed to get any buzz for his own race, which seemed to be grounded entirely in the fact that his father had coached the UNLV Runnin’ Rebels.
Still, it says a lot that given a choice between Angle and the Republican who endorsed chickens for healthcare, Reid’s team preferred Angle. (And in fact, his statement on the race didn’t even mention his opponent, as he aimed for the high road instead.) Reid’s performance in poll after poll in Nevada has been abysmal, with barely a third of voters approving of the way he does his job. But aides have said for months that the race would sharpen once it settled into a contest between Reid and an actual opponent. And Angle’s record, which didn’t get much exposure during the GOP primary, gives them some good ammunition to work with.
Announcing her campaign last year, Angle told the Reno Gazette-Journal that families with two working parents “dilute” healthcare and retirement benefits. Unlike many politicians in Nevada, she’s fine with the idea of trucking nuclear waste into the state to bury it at Yucca Mountain. In the state Assembly, she once voted against tougher penalties for repeat drunk driving offenders — but also said alcohol should be illegal. She says custodial work is something “Americans just won’t do.”
Besides Reid, some very conservative people were pleased with the results Tuesday, too. Angle’s win is another victory for the Club for Growth, the rabidly anti-tax (and, essentially, anti-government) group that endorsed her, as well as Utah Republican Mike Lee, who knocked off Sen. Bob Bennett last month. The Tea Party Express, an Astroturf group that held a big rally in Reid’s hometown in March, claimed another win, too; they spent millions of dollars supporting Angle, helping her offset Lowden’s stronger fundraising.
National Republicans tried to put a brave face on the news. “With Sharron Angle’s nomination today, I am confident that this seat will be a prime pick-up opportunity for our party in November,” GOP Senate campaign chief John Cornyn, R-Texas, said in a statement. “Sharron Angle has earned Nevada’s trust and respect through her long record of public service as a teacher, school board member, businesswoman, and state assemblywoman.” Michael Steele chimed in, too, with a promise of financial resources for the various GOP candidates in the state.
Angle will need a lot of financial help against Reid. Last month, Reid reported having $9 million in the bank — compared to Angle’s $138,000. That can pay for a lot of ads about banning booze.
Ever since the Tea Party arrived on the scene last year, Republicans have been happy to ride along with its nutty members and their eccentric ideas. Just about all the energy in the GOP, after all, comes from Tea Party anger. Angle’s win Tuesday, though — and Rand Paul’s, in Kentucky — might represent the flip side of that energy.
Could she still win in the fall? Sure. Very few incumbents recover from political situations like Reid’s. But by nominating the candidate sitting farthest out on the right wing fringe, the GOP base — and especially the Tea Party chunk of it — may have thrown Reid a lifeline.
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