Rich Fiscus
1 Dec 2007 18:43
Just as Blockbuster has been making headway competing in the online rental business, rival Netflix has apparently decided to retun the favor and compete in Blockbuster's brick and mortar world.
No they're not opening up a chaing of brick and mortal rental establishments. What they are doing is selling gift cards in stores like Office Depot, Winn-Dixie, and Barnes & Noble College Booksellers. In addition, more stores could be added next year.
Netflix is looking to take advantage of the massive popularity of gift cards as Christmas gifts. This is one place where internet based businesses like Netflix have a decided disadvantage. While a customer can walk into a brick and mortar establishment (including Blockbuster) and walk out with a gift card to give as a present, the internet isn't a particularly good medium for selling them.
According to the National Retail Federation, gift card sales are expected to total over $25 billion this holiday season.
“Introducing gift cards this holiday season is part of our larger strategy to expand retail distribution over time,” said Jessie Teitz, VP of marketing at Netflix. “The end goal is to make it as easy as possible for consumers to give the gift of Netflix or purchase it for themselves.”
Source: Video Business