Goodbye Neighborhood Video Rental Store

March 21, 2010 By

It used to be we had small neighborhood mom and pop video rental stores. That gave way to the large, big box, mega retailers like Hollywood Video and Blockbuster. Hollywood Video is in Chapter 11 and now Blockbuster is hanging by a thread. Netflix was the first nail in the coffin. Now there is iTunes, Amazon.com, Boxee, and Roku among others. There’s just to need to drag yourself down to a Blockbuster and put up with their silly return rules, let alone hoping the title you want is even available.

RedBox has been a massive hit without large stores because they put their vending machines where people already are, like the supermarket. No extra trip or hassle required. And at $1 a movie, Blockbuster doesn’t stand a chance. It’s interesting that Blockbuster has watched all this go on in the past few years but has not been able to do much of anything about it. They’ve experimented with a few things, but halfheartedly and they have been failures. Someone at corporate didn’t want to hurt the mainline retail business, which was really bad strategy because that business is dead now anyway and they have nothing to show for it.

Blockbuster has misread and misunderstood most every new business reality of the digital age. There CEO talks a good game but somehow I doubt they will have the boldness and smarts to actually do what it takes to catch up. The only thing they have going for themselves is a still strong brand name. If they can just find the guts to capitalize on it.

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Filed Under: Blog, Marketing, Technology, Video Tagged With: , , , ,

Blockbuster's Online Play

April 21, 2008 By

Blockbuster is taking the only logical step left to save it’s business. As I wrote about already, the online film rental market is not there yet and the opportunity is open for someone to take the lead. I think Blockbuster is taking the right road with a hardware box, but it remains to be seen what the user experience is. They may be building upon the Movielink service they purchased but Movielink was never a very good service and was saddled with lots of arcane DRM. This will surely doom the service unless they have changed things.

In general I don’t trust Blockbuster to pull of either the hardware or the service. It’s not what they do and unless they have a very good partner to help them, I foresee failure. If they can put more pressure on Apple, however,  to get more movies on iTunes or Netflix to accelerate their online initiative, their effort will be worthwhile for end users.

It’s funny to read statements in the article like Blockbuster needs to be careful not to canabolize their brick and morter business. That’s old school thinking. That business is already dead. The best way to survive in a changing world is to put yourself out of business before someone else does. Blockbuster does have a strong brand name and a window of opportunity here to make the leap. Are they savy enough to pull it off?

Filed Under: Blog, Video Tagged With: , , , ,