Tuesday, June 8, 2010

Why Blockbuster Is In Trouble

Source: Gizmodo

This, my friends, is a direct quote from the mouth of Blockbuster CEO Jim Keyes ... hold on to your pants:

"I don't have to figure out how to get it from my Nintendo machine to the screen. I know I can do it, but I don't want to - it makes my head hurt to think about it."


Mr. Keyes up there is of course referring the complex act of inserting the Netflix disc into a Wii and the apparent headache that the entire process induces. If I had stock in Blockbuster I probably wouldn't for much longer. That above quote may be excusable for, say, my grandmother to utter but a CEO of a company that specializes in video rentals?

This actually explains a lot about Blockbuster and how it hasn't exactly been proactive in competing with online streaming services like Netflix. Blockbuster recently pulled off something of a media embargo and has exclusive rights for 28 days on new releases, but that is far from enough to keep them competitive in the rental market.

Yes it is true, Blockbuster now has a mailing service similar to Netflix and has a kiosk system similar to Redbox but it apparently has no plans to go digital as this candid interview with Jim Keyes proves.

CEO Jim Keyes is obviously a firm believer in the old school rental train of thought, he has had to be, and while I still feel that going and renting a hard copy of a flick still has its place it is by no means the most convenient method. Blockbuster needs to do something drastic if it is going to survive this new age of instant gratification, streaming is the future and it is time for the people like Mr. Keyes who run the company to come to terms with this fact.

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