Film Clips That Teach! Blockbuster, Inc., has a new plan coming out in June 2008 to maintain consumers' allegiance from switching to rival movie rental company Netflix: If consumers need to download movies, they're able to; but they could only get it done in Blockbuster stores.
The move, announced yesterday, is a component of a broader plan to re-invigorate lagging profits. Blockbuster, the aged movie rental company that has tried repeatedly to prevent Internet-based rival Netflix from enroaching on its business, has were fighting a losing battle. As consumers transferred to renting movies with the Internet and achieving them delivered in the mail, Blockbuster was forced to close most of its brick-and-mortar stores. However, even its online rental branch, which has been meant to take on Netflix alone turf, never became as big and profitable because the retailer hoped.
The download plan is actually form of strange. According to Blockbuster's CEO's announcement at the corporate meeting, Blockbuster will be setting up kiosks inside a select few of the stores. These kiosks will let Blockbuster consumers download movies onto portable movie players produced by Archos. The catch, of course, is that consumers should never only own an Archos-manufacturerd portable movie player, and often will also still need to drive to a physical Blockbuster location.
This seems counter-intuitive in comparison with Blockbuster's main rival, Netflix. Netflix allows consumers to search a show library online, request a movie, and also have it shipped to their door (often with the next day). Blockbuster's move can be hardly revolutionary in comparison with initiatives by Netflix to allow customers download and stream movies for their TVs uses the Netflix Player hardware. Computer manufacturer Apple, Inc., meanwhile, lets users of the Apple TV box similar privileges: Movies may be searched, rented and watched during first minutes just by by using a wireless Internet connection and also the Apple TV hardware connected on their TV.
Apple and Netflix are not the only competitors to Blockbuster's coming download plan. Amazon.com already offers movie downloads through Amazon Unboxed, while cable companies have been offering video when needed for years.
With such competition, it really is hard to realise why consumers will need to drive to a neighborhood Blockbuster in order to download a movie onto a motion picture player that they'll have to buy automatically.
One way Blockbuster could make this plan more productive is if they showed the movie download kiosks to more portable movie players than Archos-manufactured devices. One can suppose a kiosk that let you plug your iPod into and download a show immediately could have potential. At the same time, Apple has long offered the service through iTunes through the comfort of your home computer. Thus, Blockbuster's plan is still very puzzling.
Time will inform if the new Blockbuster movie download kiosks will be attractive enough to lure consumers into driving on their neighborhood Blockbuster store as opposed to using Netflix, Apple, or even the host of other alternatives. Blockbuster obviously includes a long way to attend beat Netflix inside movie rental business.
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