Blockbuster will make major push in sell through (1 Viewer)

[oscar_merkx]

http://www.videobusiness.com/article...8&catType=NEWS
havind read this article, this is something to think about the impact of one major player in this business.

 

[David Lambert]

I said five years ago that this would eventually happen. No surprise here! :frowning:

 

[Brian Kidd]

Thr problem with Blockbuster's sell-through product is that their prices are almost always four to five dollars more expensive than competing retailers. Of course, the average customer probably doesn't do a whole lot of price-comparison on DVDs.

I must say that the "NetFlix Model" that they're proposing sounds interesting. However, I wonder if it will come with typical BB restrictions like "Only two rentals allowed per week," etc.

 

[SteveK]

Oscar- I saw a brief blurb about this on the CNN ticker tape last night. It didn't give any details, just that BLockbuster was going to change its strategy to emphasize sales rather than rentals.

I can't see how the move would have any significant negative effects. After all, more competition can be a good thing. But if they try to sell their DVDs at prices similar to their current DVDs, then Best Buy and the online retailers have nothing to worry about, as they seem to sell most titles at or near list price. Yes, a free rental might partially offset the higher price, but it seems that Blockbuster isn't even going to try to compete at the lower price point offered by other stores. So it will be interesting to see how much of a competitive factor they will be.

I like their current weeklong rental program and I hope they make it a permanent feature. I have my doubts about the Netflix-style membership they are planning, as they simply don't have enough of a selection to make it worthwhile. Their selection of catalog titles is rather small, even for more recent titles. Silent films? Forget it! Foreign films? Perhaps an occasional title here and there, but certainly not a comprehensive selection. Sorry Blockbuster, but you dont' begin to compare to Netflix.

But it certainly is interesting to see an attempt to emphasize sales rather than rentals. I'm certain that it reflects the popularity of DVD sales, as I doubt they would ever want to concentrate on sales if only VHS was available.

Steve K.

 

[David Lambert]

Thr problem with Blockbuster's sell-through product is that their prices are almost always four to five dollars more expensive than competing retailers.

This pricing was inevitably a means to push in-store shoppers toward the rental model, since BlBtr can make money on the same item again and again that way, rather than the 1-time profits of a sale. OTOH, if they WERE gonna sell something, at least it's at a good profit margin, right?
If they are planning to push the sell-through aspect of their stores, then I presume right now that the pricing structure will change to be more in-line with Wal-Mart, Best Buy, Circuit City, and Target. Otherwise, there's little point, eh?
But I think we can tell the way the wind is blowing by examining what their deal was for Harry Potter: "We'll match ANYONE's sale price on Harry!".
Sounds like a harbinger of things to come. In the end, the customers will win if there's another kid on the block pushing prices down. Especially if that kid has been convinced to stock OAR titles, as BlBtr recently was thanks to many determined customers!
It had to happen, as studios like Warner eschew the rental model for sell-through sales. BlBtr isn't so stupid or blind that they can't see that they are on a slippery slope with the rental-only model, and they better get their foot in the door now for a different kind of model, or else face the question of survival.

 

[Matt Pelham]

They offer that program now with video games. 19.95 a month, no late charges (as long as you bring them back within a month) and the only restriction is that you can have up to 2 items out at a time. Every time you bring 1 (or 2) back you can check out 1 or 2 more, easy as that. You could get 10 games a day if you were so inclined.

 

[oscar_merkx]

here in the uk, looks like a battle is going on
http://www.ananova.com/entertainment...tainment.films
with the news that Blockbuster is in dispute with Warner Bros after the movie giant changed its pricing structure.
The chain has already boycotted Training Day, the cop thriller starring Denzel Washington and Ethan Hawke
there is more with the link.

 

[Jesse Skeen]

I'll only shop at Blockbuster if they start carrying porn!

 

[John Berggren]

It'll be interesting to see what this does to opening week sales prices - if Blockbuster will just come in line with other retailers, or agressively push the price.