Blockbuster closer to the chopping block
In its weak quarterly earnings report, Blockbuster blamed some of the weakening sales declines on improved movie house attendance.
Blockbuster needs some quick innovation. Perhaps becoming a retail showroom for Amazon as it launches its Kindle 2 and Kindle DX, or Sony and its stuggling line. Better yet, add a subscription model that is more generous than Netflix and add an e-book subscription service as well.
The time for incremental change is gone. Blockbuster must cannibalize itself or prepare to join the list of nostalgic names that people used to visit when getting their entertainment.
As reported in the LA Times, Blockbuster said "we estimate nearly 3 million more people are going to the movies each week in 2009" than in 2008, he said on a conference call with analysts. "This has been pulling traffic from Blockbuster stores."
The same article noted that Netflix revenue has not been damaged by the 14% increase in movie ticket sales. Netflix gained almost one million new subscribers.
The business model is shifting. People do not like to be reminded of costs each time they listen, read, or watch. Netflix understands the changing market. Blockbuster is tied down to a retail infrastructure that will not help them without dramatic restructuring.
Blockbuster needs some quick innovation. Perhaps becoming a retail showroom for Amazon as it launches its Kindle 2 and Kindle DX, or Sony and its stuggling line. Better yet, add a subscription model that is more generous than Netflix and add an e-book subscription service as well.
The time for incremental change is gone. Blockbuster must cannibalize itself or prepare to join the list of nostalgic names that people used to visit when getting their entertainment.
