Rich Fiscus
17 Nov 2007 18:34
Blockbuster CEO James Keyes is hoping to bring profit back to the company he took over earlier this year by returning to a strategy focusing on their brick and mortar stores.
While this isn't exactly a reveletion given the heavy losses incurred while trying to compete with online DVD rental leader Netflix, Keyes isn't really trying to move the company in a different direction so much as to a different path that leads to the same place.
"This is an industry in transition and a company that hasn't been able to keep up with that change," said Keyes, named CEO in July. "But Blockbuster is one of the best-known brands in the world. We've just got to find ways to use technology to make the company more relevant."
One of the most important technologies Keyes sees in Blockbuster's future is the kiosk. Recently, with the success of DVD rental kiosks at McDonalds restaraunts and recent changes to DVD copy protection standards that allow burning encrypted DVDs, kiosks are generally expected to see heavy growth in the next few years. A company like Blockbuster could conceivably leverage branded kiosks to bring their products into a wide variety of retail spaces that have traditionally either avoided DVD rentals or had Limited operations.
Keyes seems to be aware of the technology's potential. He mentioned on-demand burning and direct transfers to mobile devices as two possible directions the company could be going soon.
Source: Associated Press