blockbuster Archive

In an attempt to "woo" Netflix subscribers to come over to the Blockbuster camp, Blockbuster is offering free in-store rentals for Netflix subscribers for the next week. They are calling it an opening when the post office is closed.

From their release, Presidents' Day is just one of the 62 days in the year when online movie renters can't receive movies by mail.  When there's no mail or just when the mood strikes, BLOCKBUSTER Total Access gives its online subscribers the option of exchanging their DVDs at a participating BLOCKBUSTER® store for free in-store movie rentals. In exchange for every flap they present, they will receive an on-the-spot free movie rental.

"With this Presidents' Day offer, we're celebrating freedom of choice for American movie lovers, who no longer have to wait for the mail to get DVDs," said Nick Shepherd, president, Blockbuster North America. "Tens of thousands of customers are joining BLOCKBUSTER Total Access every day because no one else provides the convenience of online rentals backed by in-store services which enables consumers to access the movies they want 365 days a year."

Wow, at least 10,000 new customers each day. That means that by the end of the year they should have at least 3,650,000 new customers this year. There is no doubt to me that this video rental war will continue to fire on all cylinders this year. That is until the video download services take off and replace the DVD. And let's be clear… taking such a forceful marketing move should only be taken when you know the risks. Blockbuster knows they have the stores as a leg up over Netflix and they are using it to their advantage.

The New York Times has a good (albeit short) interview with the Blockbuster CEO, John Antioco. He speaks about Netflix's new download service along with how many users actually convert from free trials to full paying customers.

Mr. Angioco mentions that their download service will begin in 2007. His comment about digital downloading, "While we don’t see digital downloading as becoming a big business in the next year or two, our mission is to provide customers with completely convenient access to movies."

Having tried both Netflix (I think I was one of their initial customers way back when), Walmart (gone now) and Blockbuster, I think the net result is that the services are basically so close in overall quality that whomever gets you the movie you want quicker might be your choice in the long run.

I have started to see ATM-style machines that dispense DVDs for $1 a day popping up at malls, supermarkets, airports, etc. In fact, in NYC I noticed a machine next door to a Blockbuster. Without an online membership, individual rentals at Blockbuster can be as high as $5. Why not just rent it for a buck?

I still give the nod to Blockbuster with the ability to return the movies in their stores along with picking up another. Of course for the lazy (me included), the download ability from Netflix might win out.