Sunday, November 02, 2008
I just went to Blockbuster for the first time in at least 5-6 years. Since my not-yet four year-old son recently started watching R-rated movies I figured it was time to renew our membership.
Having had his interest piqued by The Clone Wars, LittleC-Nut recently saw the original Star Wars at his grandparents house (2 or 3 times). So tonight we rented the next chapter, The Empire Strikes Back.
It cost $5.44!
I couldn't believe it. Boy am I out-of-touch. Can't you buy these movies outright for something like $15?
I remember first renting movies in 1985 for $2 a piece.
Solving 2*(1+x)23 = 5.44 for x tells me that my video rental cost has inflated at a 4.46% annualized rate for the past 23 years.
I guess that's not too crazy.
They told me I could keep the flick for 8 days AND then there was another 7 day grace period. Wow.
In case you didn't know, Blockbuster is flailing - ravaged by Netflix, On-Demand cable movies, Hollywood's sh*tty output over the past decade, overexpansion(?), and an infinite variety of web entertainment (e.g. YouTube, FaceBook, and MySpace).
Crap, the stock is down to a measly $1.52 per share and STILL, 25% of its float is sold short.
That means not even a Jedi Knight could save it from meeting its destiny....