Blockbuster idea or too little too late?

Posted: March 25, 2010 in Uncategorized
Tags: , , , , , ,

So it is no surprise that Netflix and Redbox are taking over how we rent videos. Less overhead to deal with then the brick and mortar counterparts. What is surprising is the deal they both signed with Warner Bros studios making it so the WB movies arrive in stock a full month after being released. Smart move on WB’s part as it (hopefully) will boost DVD and Blu-Ray sales, although unlikely to make a big difference. This blog post is not directly about this deal or even the two previously mentioned rental companies. It is about Lackluster….er Blockbuster.

I had read this article today on CNNMoney.com about the fact that Blockbuster is in danger. They have way too much debt and, well let’s face it, an antiquated business model. I am impressed with the flexibility Blockbuster has had in trying to change the way they have done business and using the brick and mortar stores to their advantage but is it too little too late?

Well the aforementioned article mentioned a possible competitive advantage that Blockbuster may now have up its sleeve. Blockbuster also recently signed a deal with Warner Bros but this deal lets Blockbuster have the movies when they come out for a sharply discounted price, allowing WB to receive more of the rental royalties. What does this mean for Blockbuster? More cash up front to pay down its debt. Also it gives it the chance to run store and print ads like this:

Now this is aggressive advertising. This is arguably one of the biggest movies of the last year and look you has it first! I applaud you Blockbuster and wish you well. I hope this works for you as you now deserve a little more street cred.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s