Blockbuster Not Giving Up Rental Market Without a Fight

[futuresl]

http://www.ehomeupgrade.com/entry/44...ter_not_giving

Blockbuster has been getting a lot negative press lately because the company's financials have been looking bleaker and bleaker every quarter. Well, folks, all that is going to change, according to Blockbuster Inc. chief executive (and former 7-Eleven CEO) Jim Keyes. In a recent interview, Keyes states the company will conduct the following initiatives:

*Stocking more new-release DVDs for sale on the rental wall.
*Adding more electronic hardware to the merchandise mix, including iPods and a Disney portable DVD player for children.
Selling the PlayStation 3, bundled with Blu-ray movies, out of a Sony-built display area in 2,000 stores.
*Offering movies preloaded on flash drives for convenient viewing on PCs or laptops on a jetliner.
*Selling more gift cards.
*Marketing on Facebook.


Next year, the company will focus on technology and the in-store experience by:
*Offering online DVD downloads from a new Blockbuster.com site merged with that of Movielink, which Blockbuster recently acquired.
*Testing kiosks in stores that burn DVDs and download movies onto flash drives while you wait.
*Testing DVD vending machines such as Redbox.
*Testing stores with a cold beverage bar and lounge, children's play areas and a technology center.

What do you guys think? Smart moves or a waste of time. Personally, I think the strategy is brilliant. I'd love to see the stores being put to better use (i.e. tech showcases, new content distribution methods) and see their newly acquired Movielink arm get moving on a massive scale – hopefully not just direct to Windows PC downloads (I'd love to see a cross-platform PC solution (via Adobe AIR/Microsoft Sliverlight?) and direct to media adapters/extenders/cable set-tops movie streaming option as well).

[zooworker]

Well so far stocking NR sell through on the wall has cost us dearly in theft.

[SeriousBusiness.]

I like the bit about "Testing stores with a cold beverage bar and lounge, children's play areas and a technology center." But for a more selfish reason then it's actually effectiveness. It would be sweet to work in a place with that included but they way Blockbuster rolls now, people just want to get their movies and leave. I don't think to myself "hey, I just wanna chill out, have a couple drinks... let's go to BLOCKBUSTER!"


On second hand... some of the teenagers already treat my store like some sort of first date arena, and parents use it to let their children burn off extra energy making a mess of my store.

It'll be interesting to see. One thing I really want to get in my store is a gaming station and have guitar hero hooked up so I can rock out when it's dead. Heart be still. <3

[HelloItsMeMOM]

*Offering online DVD downloads from a new Blockbuster.com site merged with that of Movielink, which Blockbuster recently acquired.
*Testing kiosks in stores that burn DVDs and download movies onto flash drives while you wait.
*Testing DVD vending machines such as Redbox.

That is not good for your jobs ....

*Testing stores with a cold beverage bar and lounge, children's play areas and a technology center.

Wait ... you could become babysitters and cleaning people ...

[igniteice]

Oh thank goodness I'm not with Blockbuster anymore. No doubt some of this would have been passed on to us in franchise world as "good ideas." Yeah, just like no late fees was passed on as a "sure fire idea." Great idea, really! ;-/

[Angry]

I don't see much of any of that working. The New Release Sell-Thru on the NR Wall is an absolute joke. Too many retards think those are rental copies and bring them up to the counter.

[Effigy of the Forgotten]

OOH, FACEBOOK!

Seriously, all of these ideas seem like ways to LOSE money, not make it. Now BBV employees are going to be electronics salespeople AND convenience store workers in addition to renting and selling DVDs!

I understand the urge for BBV to diversify when it seems like the rental market is shrinking rapidly, but I also feel like giving consumers 100 options once they're in the store is going to confuse the hell out of them - "How would you like your DVD today? On a DVD, on a burned DVD from a kiosk, on a flash drive, sent directly to your computer, sent directly to your TV, or on your iPod? And do you want it handed to you by a person or a machine?" The reason Netflix leaped ahead of everyone else in the online rental market (other than their early start) was because that's all they do - I honestly don't have faith that BBV can try to be BBV, Netflix, Redbox, OnDemand and iTunes and do them all well.

Really the only thing that seems 100% smart is selling more giftcards (since that's money that often doesn't get redeemed), but shouldn't that be a constant thing, not a "brilliant" new idea?

[SL_600]

Originally Posted by Angry

I don't see much of any of that working. The New Release Sell-Thru on the NR Wall is an absolute joke. Too many retards think those are rental copies and bring them up to the counter.

Not to mention those ones with the same unlocking devices that you guys have behind the counters, that can be bought by unscrupulous individuals. Corporate may think this will create more traffic in the door, but I wager that more product will be trafficked out of it. And have they forgotten how overpriced that product is.

But.... I would like to see some sort of TA program whereby you can get unlimited downloads to a jump drive as many times as you come in. Am I wrong or is this cheaper than purchasing and storing multiple copies of DVDs? Would solve the "always out of hot New Releases" syndrome. "Blockbuster.... Always get what you came for."



Corporate: PM me for my PayPal info.

[BBVcasualposter]

Originally Posted by zooworker

Well so far stocking NR sell through on the wall has cost us dearly in theft.

The blind side they wont see till down the road. These are those nasty numbers you only find out every 3 months, that are on the dramatic rise.

I never did understand why they couldnt go on some sort of dead system on these and just have dummy boxes in the retail areas and these in a dedicated locked cabinet. A Retail dead box in a blue lock box on a swing fixture or rental section, still leaves the appearance 100% to a customer its an available sale item.

I still think Keyes will have plans and realize some of these little nuances and make adjustments. This business has some twist that are a little different than other retail business. That is why all the wack systems of the old head honchos, except they took it to other extremes that Keyes seems to be fixing.

The only thing I personally dont like is the test's multi teir pricing for daily rentals. Its just too confusing for average joe customers. Just get rid of 2 and 7 day NR and just have NR and its all one a 1 day flat fee system. Then you just have NR and if you want to promote new stuff, color it up with HOT NR signage. NR shouldnt have 2 price tiers though, imo.

[Angry]

Originally Posted by SL_600

Not to mention those ones with the same unlocking devices that you guys have behind the counters, that can be bought by unscrupulous individuals. Corporate may think this will create more traffic in the door, but I wager that more product will be trafficked out of it. And have they forgotten how overpriced that product is.
But.... I would like to see some sort of TA program whereby you can get unlimited downloads to a jump drive as many times as you come in. Am I wrong or is this cheaper than purchasing and storing multiple copies of DVDs? Would solve the "always out of hot New Releases" syndrome. "Blockbuster.... Always get what you came for."



Corporate: PM me for my PayPal info.

Exactly. Last night I had a husband and wife arguing about purchasing Ratatouille at our store vs Walmart, who had it 5 bucks cheaper. I can't speak for corporate stores, but for us we're generally paying 17-18 invoice per NR sell-thru copy each week, minus the kids stuff. Then we price them at 19.99 to remain semi-competitive. But when you only get 6-8 pieces of sell-thru for a title, and make so little margin per copy sold, you have to wonder what's the point. Even if you sell-out, you've made the same profit as selling a couple of PRPs. I wish our store would just buy the product from Walmart or Amazon instead.