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Blockbuster's Keyes details company plans to become entertainment convenience store

Written by Rich Fiscus (Google+) @ 10 Jan 2008 23:07 User comments (12)

Blockbuster's Keyes details company plans to become entertainment convenience store On Tuesday, at an event overshadowed by the annual Consumer Electronics Show in nearby Nevada, Blockbuster CEO Jim Keyes spoke about the company's plans for the coming year. Not surprisingly, those plans are primarily a continuation of the company's direction since Keyes took over last year.
Although lacking the glamour and media attention of CES, the Citigroup 2008 Global Entertainment, Media and Telecommunications Conference in Phoenix was attended by media analysts, many of whom were in attendance for Keyes' presentation, where he laid out Blockbuster's plan to reshape themselves into an entertainment convenience store.

If we can improve that core [DVD rental] business we believe it can generate incremental cash flow that can then be used to invest in the future, for digitial downloads, for technology, perhaps for kiosks, he said.

Last year Blockbuster began testing kiosks in a number of locations, and is reportedly considering the possibility of both on-demand DVD burning and downloading video to flash memory as an intermediary format used to transport it to a home computer or portable music player. Eventually they may even be able to load media files directly on the consumer's iPod (or other player hardware).

Source: Video Business

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12 user comments

111.1.2008 0:46

Quote:
If we can improve that core [DVD rental] business we believe it can generate incremental cash flow that can then be used to invest in the future, for digitial downloads, for technology, perhaps for kiosks, he said
If thats your plan you may be in serious trouble, should have started thinking downloads 12 monthes ago. Your consumer base started migrating there when?

211.1.2008 3:23

what BB needs is to get away from the current DVD rental model,
I wonder if burning their own discs(simple all in machine that can burn with one les print with 1 lens or simple ink jet) would help any they get masters from the media indutry in data or disc form they can burn, I mean really BB already has its won cases they just need to do their own discs and make a deal with the media industry that each disc winds up being 70-90% of what they are paying now.



They pay a percentage off sales and a minuim of I dunno 10-50 to 1 price wise for the master data, this can aid them in 3 ways they would never be out of a moive it should cut costs and its like virtual downloading for the consumer however they must return the disc to be able to get a new one.

However hollywood would probably fight this idea tooth and nail, they would rather destroy the rental industry than aid it.


BB has to launch a better 3 front war downloads, local stores and online they can make better deals then they are doing now, tie in the stores to the local area so that local stores join with he online distro to help fill the customers needs at cost....the more BB price gouges the harder tis going to be for them to maintain them selfs..

311.1.2008 5:07

Blockbuster needs to cut their prices on sales of new & Used {Previously Viewed ) DVD's they are much more expensive than Walmart , Target store s , or any other of several retailers either online or Regular Brick and mortar stores! I priced the same DVD - The Resident Evil /Apocalypse - Double feature DVD and Blockbuster almost $ 6.00 more for the exact same DVD set ! Then it is at Target !!!! Indeed I was going to buy several movies at Blockbuster with a Gift Card I got for Xmas ! After perusing their selection of DVD's for sale I got disgusted with their prices and limited selection in store ! I know I could order Online and get a better selection than the local store but I don't think Blockbuster takes gift cards online ? and if I'm gonna have to come out my pocket to order online their are many other online retailers with better prices some even have free shipping ! Better prices for the consumer That will get you more Bussiness Blockbuster atleast on the sales end of it !!!!!!!!!

411.1.2008 5:18

Originally posted by BIGTOXY69:
Blockbuster needs to cut their prices on sales of new & Used {Previously Viewed ) DVD's they are much more expensive than Walmart , Target store s , or any other of several retailers either online or Regular Brick and mortar stores! I priced the same DVD - The Resident Evil /Apocalypse - Double feature DVD and Blockbuster almost $ 6.00 more for the exact same DVD set ! Then it is at Target !!!! Indeed I was going to buy several movies at Blockbuster with a Gift Card I got for Xmas ! After perusing their selection of DVD's for sale I got disgusted with their prices and limited selection in store ! I know I could order Online and get a better selection than the local store but I don't think Blockbuster takes gift cards online ? and if I'm gonna have to come out my pocket to order online their are many other online retailers with better prices some even have free shipping ! Better prices for the consumer That will get you more Bussiness Blockbuster atleast on the sales end of it !!!!!!!!!
Before they can do that they need to lower cost and without dealing with those issues they can never lower the price to the consumer.

511.1.2008 10:10
2colors
Inactive

Blockbuster needs to lower their prices to remain competitive. I can rent a movie at the locale Family Video store and get a new release for 2.75 to 3.25. Blockerbuster I believe is at least 4.25 for a new release. Family Video 1.00 for what is everything except new releases. Blockbuster a whole lot more.
BLOCKBUSTER READ THE FINE PRINT and lower your prices to become dominant in the rental business.

611.1.2008 10:39

Sounds like my friends bedroom

711.1.2008 12:17

Blockbuster also needs to change their video game rental fee. $8.00+ is crazy. I don't want the game for 3 days. I want it for 1 or 2, just to test it and see if my initial impression is good. They should break it up. Give consumers the option to choose how long they want it. They would probably make a killing in late fees by doing it that way. This all started because of the moddablility of the XBOX1 and PS2.

This message has been edited since its posting. Latest edit was made on 11 Jan 2008 @ 12:19

811.1.2008 17:33
goodswipe
Inactive

Quote:
plans to become entertainment convenience store
Sweet, so can I rent a movie and buy a beer?

I agree, they definitely need to lower there prices on rentals.

913.1.2008 15:39

I agree with emugamer

1013.1.2008 15:45

Originally posted by emugamer:
Blockbuster also needs to change their video game rental fee. $8.00+ is crazy. I don't want the game for 3 days. I want it for 1 or 2, just to test it and see if my initial impression is good. They should break it up. Give consumers the option to choose how long they want it. They would probably make a killing in late fees by doing it that way. This all started because of the moddablility of the XBOX1 and PS2.
I remember when it was 5$ and you got it for nearly a week, BB is fcked now adays....

1115.1.2008 12:37

i used to work for bb, games are 8 bucks, but 5-day rentals, plus the 7-day grace period. so basically 12 days. but yes, 8 bucks is very high. and now that the online (total access) prices went up and they dropped the free game or movie coupons, they lost a big portion of the consumer base.

1223.1.2008 16:43

It looks like its going to be the same old thing.

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