12 comments on "Just An Online Minute... Blockbuster Challenges Netflix With Offline Strategy"

1. Kristen Gay from n/a
   

   commented on: January 04, 2007 at 12:50 AM
   This exemplifies the continued integration between old and new media, business models, and overall technologies when Blockbuster utilizes their existing foundation to further their "catch-up" phase instead of allowing themselves to be replaced. Netflix is web-based and if Blockbuster continues to improve both aspects of their business presence, they can gain a huge advantage over Netflix.

2. Javier von Westphalen from HMA Associates, Inc
   

   commented on: January 03, 2007 at 6:03 PM
   If Blockbuster continues to closing stores they will fail to implement their value proposition- rent a DVD online and exchange it at our stores- that is helping them gain online share of wallet. If customers have to drive more than 5 miles to rent or do an exchange, Blockbuster is defeating is competitive advantage and losing its service differentiation. If everything is equal, how are they planning to compete withe Netflix online proven service and customer satisfaction?

   Javier von Westphalen Director, Multimedia Services HMA Associates, Inc.

3. Jerilyn Kessel from Kessel Strategic Marketing
   

   commented on: January 03, 2007 at 4:29 PM
   People counted Bkockbuster out way too soon. They have anumber of tricks uo their sleeve. And do not underestimate the value of the on-line/retaile consumer experience.It's more than about "returning" the disc

4. Ken Gawrelski from AOL
   

   commented on: January 03, 2007 at 3:24 PM
   I have been a Netflix subscriber for several years. In the last 6 months nearly every DVD I receive from Netflix is damaged, causing the playback to freeze several times. Nobody is talking about this issue, but I can't imagine I am the only customer experiencing this problem. I will also give Blockbuster another try.

5. Ned Newhouse from nycnews.com
   

   commented on: January 03, 2007 at 3:16 PM
   From a consumers and me a marketer's point of view I think the war is over and Netflix won. I have been a consistent subscriber of Netflix for over two years. I have also been a subscriber twice of Blockbusters over the same period of time. Netflix's inventory and speed have been beyond far superior to Blockbuster's. It is a critical mission for Blockbuster to win this online movie war if they are to survive. Brick and mortar has already passed. Just go and look for how many record/cd are gone. While this is good move for them to have increased customer levels it will be interesting in one year to see how many people they actually retain. Let's see if they learned there lessons from the leader Netflix and they truly geared up for this growth event.

6. Ari Sussman from Harvard
   

   commented on: January 03, 2007 at 3:14 PM
   Unfortunately the economics of the total access program is going to drain the company of cash. It speeds up the rate at which customers can exchange movies and therefore makes Blockbuster's economics untenable.

7. Michael Racz from RDA Internationa
   

   commented on: January 03, 2007 at 2:59 PM
   FYI, Blockbuster was doing the reverse originally, namely, giving out coupons online that could be redeemed at B&M stores. They cut back on this ostensibly with the intro of the Total Access program, but are still issuing the coupons online to members. Their original program captured me from NetFlix, and despite a feeble NetFlix "From $9.95" program (one movie at a time per month), there seems no reason to switch back.

8. Tim Patterson from Interpretive Exhibits, Inc.
   

   commented on: January 03, 2007 at 2:31 PM
   I have used Blockbuster's rent-by-mail service for over a year now and love it. I was happy even before they instituted the in-person bonus to return rentals. So I can't imagine it being much of a hardship to not be able to return the DVD in person - popping it in the mail is just fine, and the turnaround is amazingly quick and consistent.

9. bill haskitt from whereoware
   

   commented on: January 03, 2007 at 2:30 PM
   You get more than a coupon when you return - you get a Movie!! It is same as NetFlix PLUS no lose

10. Michael Dirmeikis from Axcel Internet Technologies
    

    commented on: January 03, 2007 at 2:29 PM
    It appears to me that not having a B&M store nearby doesn't place Blockbuster at a competitive disadvantage against Netflix. It simply places them on the same playing field. For those consumers in near proximity to a store, however, Blockbuster clearly presents a preferable choice to Netflix. They will continue to erode Netflix.

11. Tom Kincaid from ToolTrucks.com
    

    commented on: January 03, 2007 at 2:14 PM
    Netflix was there first and does not have the reputation of late fees on everything, which drove me and apparently lots of other consumers away from Blockbuster. Interesting battle shaping up, and I applaud BB's efforts to compete, but in-my-mail box convenience outweighs going into a store to hunt for a movie that I usually didn't find anyway. With Netflix I always get a movie I want, every time, and they are never late when I return them.

12. Brian LoCicero from Kantar Operations
    

    commented on: January 03, 2007 at 2:03 PM
    It also helps that they were giving away loads of free trials and memberships through the holidays. You couldn't check out at a brick and mortar store without an employee forcing a handout into your bag/hands/psyche.

    something to be said about employee motivation in cross-selling their business.

Leave a Comment