Aaron Siebers did not want to go into work at Blockbuster the other day. So what does he do? He stabs himself and tells co-workers that some skinheads tried to rob the store. Siebers should have known that he was under surveillance. There was no actual robbery, only a terrible plot hatching. Siebers ended up confessing and was rushed to a hospital nearby. Who would have though that working at Blockbuster would cause someone to go nearly Seppuku on themselves?

The On Demand service from Blockbuster Inc. (NYSE:BBI) has launched on TiVo box devices. The Blockbuster service is compatible with the Series2, Series3, TiVo HD, and the TiVo HD XL DVR system. The rentals will range from about $2.99-$3.99. The classics will be $2.99 and new releases will be $3.99.

“Blockbuster nights are synonymous with family and fun, something that goes perfectly with the TiVo experience,” stated TiVo SVP of Sales and Marketing Joe Miller. “By bringing Blockbuster’s content direct to TiVo subscribers, we show once again that TiVo offers much more choice and convenience for our customers compared to other DVR offerings. We are very pleased to say that customers can now walk into a participating BLOCKBUSTER store to purchase TiVo DVRs and that together both companies have succeeded in bringing even more entertainment direct to the living room.”

Blockbuster is not having a good year. About 18% of their stores are unprofitable so they plan to close 960 stores by EOY 2010. Of those 960 stores, 685 are shutting down this year and another 275 the year after. And those aren’t the only stores, Blockbuster may have to end up shutting down. An SEC filing indicates that Blockbuster may have to shut down about 1,560 locations.

To compensate shutting down a large number of stores, Blockbuster will be expanding their kiosks and Total Access subscriber base. Blockbuster also plans to launch their OnDemand service on as many connective devices as possible. Blockbuster currently has 7,000 stores.

Blockbuster currently has 497 kiosks and they plan to launch 2,500 units by the end of 2009. By 2010, they plan to have 10,000 kiosks in grocery stores and fast food chains to actively compete against Redbox.

Blockbuster announced earlier this week that they have partnered with TiVo to make Blockbuster’s OnDemand service available through TiVo.  In return, Blockbuster will promote TiVo DVRs at their retail stores.  Blockbuster OnDemand will be available on TiVo’s Series3, TiVo HD, and TiVO HD XL boxes.

“We are excited to be teaming with TiVo, the company that created the DVR, to make Blockbuster’s entertainment content readily available to their millions of subscribers,” stated Blockbuster Chairman and CEO Jim Keyes. “Ultimately, our vision is to work with TiVo so that their subscribers can access movies not only through our OnDemand service but also from our stores and through our by-mail service as well. Regardless of a film’s availability – through VOD or on DVD – we want to work with TiVo to provide their subscribers unprecedented access to movie content.”

[via Blockbuster PR]

Blockbuster Inc. is launching a new pilot program to test whether consumers prefer to receive video games through the mail.  The pilot program will be launched during the second quarter as the company continues to struggle with movie rental competition against Netflix.  The games in the mail program will be for consoles such as the Wii, P2, PS3, Xbox, and Xbox 360.

“We already rent more video games than any other company, store-based or online, in the nation, so we know our core customer loves games as well as movies,” stated Bob Barr, VP and General Manager of blockbuster.com. “With this pilot program, we’re laying the groundwork for offering BLOCKBUSTER Total Access customers easy online access to the movies and games they want, through an integrated subscription offering. Plus, according to their plan, they’ll continue to be able to exchange their by-mail rentals both for free in-store movies as well as half-price in-store game rentals. A combination video game and movie online offering — with in-store exchange privileges — is a tremendous value and convenience offering not available through anyone other than Blockbuster.”

Blockbuster currently has about 90,000 movies in their libraries to choose from.  The addition of video games will be available to those who are already subscribing and to new subscribers as an added benefit.  Will this pressure Netflix to do the same?  It’s your move, Netflix.

Blockbuster Inc. (NYSE:BBI) is constantly battling with the nimble Netflix, Inc. (NASDAQ:NFLX).  Blockbuster has been trying several strategic moves in an effort to regain investor confidence.  These moves includes setting up a mail order rental service and making an offer to acquire Circuit City.  Blockbuster’s stock price is continuously dwindling and now their market cap is a mere $229 million.

Blockbuster’s next move is a movie and TV show direct download service.  Anyone that signs up for 25 movies in advance for the cost of $99 will receive a free MediaPoint Digital Media Player.  The Digital Media Player will allow users to directly download movies and TV shows and watch them on a computer or TV.

Movie rentals are $1.99 and the movies are DVD quality.  The MediaPoint player has an HDMI output connection for crystal clear video enthusiasts.

“The MediaPoint digital player, featuring BLOCKBUSTER ONDEMAND, is entertainment made easy. We are bringing Blockbuster, and the thousands of movies in our digital library, straight to customers’ televisions,” stated Blockbuster Chairman and CEO Jim Keyes. “The player is simple to use, delivers DVD quality video, and there’s no monthly subscription commitment. We are delighted to team with 2Wire to give consumers this great entertainment product.”

Netflix, Inc. (NASDAQ:NFLX) pulled the rug out from underneath where Blockbuster Inc. (NYSE:BBI) was standing these last couple years. Netflix, the Los Gatos, Calif.-based online movie rental company, boasts 6.3 million subscribers and a library of 70,000 movies.

Based on an e-mail survey I received from Netflix a couple days ago, Netflix is also continuously finding ways to improve their transportation supply-chain. The e-mail survey asked me when I returned The Rundown starring Dwayne “The Rock” Johnson and Sean William Scott (a.k.a. “Stifler”).

Dear Amit,
Thank you for your recent return of The Rundown. Please tell us when you mailed back this movie by clicking on the appropriate link below.
* I mailed the movie Thursday, Nov 01, 2007
* I mailed the movie Wednesday, Oct 31, 2007
* I mailed the movie Tuesday, Oct 30, 2007
* I mailed the movie Monday, Oct 29, 2007
* I mailed the movie before Monday, Oct 29, 2007

My lazy side appreciates having movies brought to my door. There are three factors that I use to determine where my business goes between Netflix and Blockbuster. Two of them are price and speed. The third reason is the user interface. Netflix’s UI is a lot more friendly because they utilize AJAX-like tools to recommend movies and rate movies.

When Blockbuster released their third quarter financial results a couple days ago, shareholders of the company may have questioned how sustainable the company’s current business model is.

Jim Keyes, Blockbuster’s Chairman and CEO responded by providing a glass half-full perspective of the situation:

During each month this quarter, over 20 million customers around the world used the BLOCKBUSTER(R) brand to satisfy their needs for media entertainment, and that customer base presents us with a tremendous opportunity.

Keyes added:

Our goal is to continue to increase our membership base by providing even more ways for customers to get the entertainment they want through our stores, through the mail and through new technologies.

In my opinion, to increase membership, you do not close 526 stores in one year alone and do not pull the plug on the Total Access program. You increase membership by function as good as Netflix’s, reduce prices, and give a further incentive for its current members to stay. Another potential form of revenue that I have not seen Netflix or Blockbuster use is advertising.

Digital advertising companies are now backed with billions of dollars from companies as big as Microsoft, Google, Yahoo, and AOL. These companies must be anxious to find ways to get access to businesses that have large memberships. Will their a public outcry if ads show up on Blockbuster and Netflix’s homepages, not likely. Even if ads show up briefly before a streaming movie, I highly doubt that users would complain too much.

As a happy Netflix customer that doesn’t want to see Blockbuster forced to shut-down, those are my two cents. As a movie rental consumer, I want to continue to have my options.

Information Source:
[1] CNET News.com: Say goodbye to Blockbuster

Blockbuster Inc. announced today that they would be acquiring Movielink LLC.  Movielink provides customers access thousands of movies that can be rented or purchased online.  Movielink is a joint venture between Paramount, Sony Pictures Entertainment, Universal Pictures, Metro-Goldwyn- Mayer Studios, and Warner Bros.

“Blockbuster is committed to keeping pace with the changing needs of customers by offering them an expanding array of convenient ways to access entertainment content,” stated Jim Keyes, the Blockbuster Chairman and CEO. “Our acquisition of Movielink, with its associated digital content, is the next logical step in our planned transformation of Blockbuster. Now, in addition to the entertainment content we provide through our stores and by mail, we have taken an important step toward being able to make movie downloading conveniently available to computers, portable devices and ultimately to the television at home.”

Blockbuster won’t be changing the operations of Movielink but will be making elements of the service available on blockbuster.com.  Movielink was started in 2002.