Could it be that Blockbuster hasn’t updated its business model amid a rapidly changing media marketplace?
Of course not. According to CEO Jim Keyes, it’s because the movies suck:
“We think the single biggest driver in the current marketplace the last few months has been title strength and this week is a classic example. Box office is down 56% this week versus the previous year. I think the titles say it all. This week we are proud to offer Punisher: War Zone and Elegy, which are good movies but stacked up against last year’s Enchanted, Atonement and I Am Legend, I think that kind of says it all.”
Some might agree that the quality of movies has slumped a bit in the past year. But when has that ever stopped us from renting? I’m guilty. I’ve wasted hundreds on movie after crappy movie out of curiosity, even sheer boredom.
Blockbuster is a classic example of a business that’s been unwilling to flex and adapt to changing times. Now more than ever, consumers are turning to economical entertainment at home, which is part of why Netflix and other competitors are thriving. Blockbuster has had a huge opportunity to capitalize on this trend and missed the boat.
As smart marketers, how can we stop pointing fingers and avoid doing the same?
{ 2 comments… read them below or add one }
I think Blockbuster has actually done a good job at paving a new online rental phenominon. I rented a movie online for my boys a few weeks ago when our cable was out. It was awesome – it downloaded and would play for 24 hours. And alternatively, they have the same rental model as NetFlix.
Given my lifestyle, I’ve come to appreciate integrated rental experiences much more than Netflix or Blockbuster. I have an iPod, and I enjoy the freedom of purchasing TV shows or movies through the iTunes Store. We’ve even made some purchases through our PlayStation3. Will I ever rent a DVD again? Probably not. The quality online is as good or better, so the only physical media I’ll ever rent again will probably be BluRay.
To speak to Blockbuster directly: I think they missed a huge opportunity to get out ahead of the move to digital. They’ve followed suit of the likes of Netflix, but they haven’t offered any innovations. There’s no reason to switch TO Blockbuster, but the updates are nice if you’re already in their system.
I think the trick is to recognize the sea change and to get ahead of the tide so you’re not left in the wake.