Blockbuster vows to go after Netflix
07-21-04, 10:37 PM
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Blockbuster vows to go after Netflix
NEW YORK (Hollywood Reporter) -- Blockbuster Inc. chairman and CEO John Antioco promised shareholders Tuesday that the video rental giant will take the fight to online rental rival Netflix Inc. when it launches its own Internet-based rental service this year.
While Blockbuster executives have in the past often shrugged off the competitive threat from Netflix and the significance of the online rental market in general, Antioco openly acknowledged its strategic importance at his company's annual shareholder meeting.
"Two million (customers) have spoken," he said, referring to Netflix's subscriber base. "We can't continue to allow our customers to erode away from us. We are not going to ignore these folks."
Antioco said current online renters tend to be affluent and technology-savvy, just like many of Blockbuster's customers, meaning that his company has likely been losing a sizable share of consumers to Netflix. Assuming that about 30 percent of Netflix users may have been Blockbuster customers, Antioco said fighting for online renters is "a significant opportunity" for his firm.
While Blockbuster executives have in the past often shrugged off the competitive threat from Netflix and the significance of the online rental market in general, Antioco openly acknowledged its strategic importance at his company's annual shareholder meeting.
"Two million (customers) have spoken," he said, referring to Netflix's subscriber base. "We can't continue to allow our customers to erode away from us. We are not going to ignore these folks."
Antioco said current online renters tend to be affluent and technology-savvy, just like many of Blockbuster's customers, meaning that his company has likely been losing a sizable share of consumers to Netflix. Assuming that about 30 percent of Netflix users may have been Blockbuster customers, Antioco said fighting for online renters is "a significant opportunity" for his firm.
07-21-04, 11:50 PM
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Ha ha. Don't think so. Comparatively VERY few people have used an online rental service vs. the millions of current Blockbuster members. Online rentals were rolled out last week and expect a big push for this service. BB will have unique services that netflix would not be able to match ever.
07-22-04, 08:19 AM
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"Antioco said current online renters tend to be affluent and technology-savvy, just like many of Blockbuster's customers"
Not the ones wandering around in my Blockbuster!
Not the ones wandering around in my Blockbuster!
07-22-04, 09:47 AM
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Originally posted by marty888
"Antioco said current online renters tend to be affluent and technology-savvy, just like many of Blockbuster's customers"
Not the ones wandering around in my Blockbuster!
"Antioco said current online renters tend to be affluent and technology-savvy, just like many of Blockbuster's customers"
Not the ones wandering around in my Blockbuster!
07-23-04, 07:05 AM
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i did a quick check of BB's selection and they have the extended edition of LOTR and star trek special editions. I"m going to assume that unlike netflix they will have special editions of a lot more movies. I'm going to give it a try after i finish season 7 of DS9.
07-23-04, 09:28 AM
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I've been trying the BB deal side-by-side with Netflix. I'm a little disappointed with BB. I know they're still in beta, but...
They ignore your queue and ship out of priority. I put three DVD's right at the top that I really wanted, and they shipped from the middle. All DVD's showed "available now" too.
Second, of the three DVD's they shipped, only two have arrived. I've never had that problem with Netflix.
Plus, no NC-17 movies from BB either.
OTOH, shipping seems to be just as fast as Netflix (for the discs that came). Plus, the price is better than Netflix too. And you get two rentals a month to use at a local Blockbuster store. Big advantage if there's something you want to watch that night.
I still haven't decided who I'll keep at the end of my free months, but I'm leaning toward Netflix.
They ignore your queue and ship out of priority. I put three DVD's right at the top that I really wanted, and they shipped from the middle. All DVD's showed "available now" too.
Second, of the three DVD's they shipped, only two have arrived. I've never had that problem with Netflix.
Plus, no NC-17 movies from BB either.
OTOH, shipping seems to be just as fast as Netflix (for the discs that came). Plus, the price is better than Netflix too. And you get two rentals a month to use at a local Blockbuster store. Big advantage if there's something you want to watch that night.
I still haven't decided who I'll keep at the end of my free months, but I'm leaning toward Netflix.
07-23-04, 01:20 PM
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Since when has Anitoco actually cared about the customers? Blockbuster's business model has always been the same as Walmarts -- f#@$ the customer, they will buy what we tell them to buy! Maybe he is realizing that the empire is starting to crumble?
And ChrisCooling is right, relatively few people actually use online rental services. Netflix is at the current media darling and is in the midst of a huge campaign aimed at their stockholders. Look at actual numbers. I believe (and I could be wrong, if so please correct me) that only about 5% of people use an online service.
It is rather funny though, BBV and Hollywood are running for cover because their whole world is shattering. Industry magazines are reporting constantly that rentals are down, rentals are down, yet you can ask just about any independent rentailer and they will tell you that business is better than ever. Even Movie Gallery, the number 3 in the biz, doesn't know what BBV & HV are afraid of.
The truth is that HV and BBV have spent too much time courting stockholders and market share. They have always counted on sweetheart deals from the studios to cover the actual margins. Now that DVD has revolutionized the retail model, BBV and HV are seeing their worlds shrivel because they kept trying to play the muscle game and losing.
And ChrisCooling is right, relatively few people actually use online rental services. Netflix is at the current media darling and is in the midst of a huge campaign aimed at their stockholders. Look at actual numbers. I believe (and I could be wrong, if so please correct me) that only about 5% of people use an online service.
It is rather funny though, BBV and Hollywood are running for cover because their whole world is shattering. Industry magazines are reporting constantly that rentals are down, rentals are down, yet you can ask just about any independent rentailer and they will tell you that business is better than ever. Even Movie Gallery, the number 3 in the biz, doesn't know what BBV & HV are afraid of.
The truth is that HV and BBV have spent too much time courting stockholders and market share. They have always counted on sweetheart deals from the studios to cover the actual margins. Now that DVD has revolutionized the retail model, BBV and HV are seeing their worlds shrivel because they kept trying to play the muscle game and losing.
