Parchayi.com - Personal Finance Simplified+(Blockbuster+MovieLink) -Netflix
Last time I covered the battle, I was recommending Netflix acquire/partner with a DVD rental Kiosk to compete with BBI but blockbuster is hell bent on one-upping netflix in any way it can and it has acquired movie download service Movie Link to compete with Netflix’s movie download service.
As of now Blockbuster plans to continue running movielink as a separate entity but will integrate in the future. Unlike Netflix’s streaming, Movie link offers downloads and downloaded rentals but I still think this is all bad for Netflix. as of now BBI is flat to slightly higher and NFLX is down over 5%.
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Where did Blockbuster go wrong??
Jonathan Salem Baskin Said,
August 14, 2007 @ 1:03 pm
It seems to me that Blockbuster waited about 10 years too late to realize that its business model isn’t distribution, necessarily, but consumer knowledge and experience re entertainment content. There’s no reason to believe that people will ’shop’ via Movielink-rebranded-Blockbuster than they would have before the purchase. The challenge is — and always has been — to help consumers find entertainment…and this is something that Blockbuster could have ‘owned’ because of its rental data history. Putting the name on another interim (or just various) distribution channel is a waste of money, I fear. I’ve written more about this at DIM BULB, http://dimbulb.typepad.com/ , if you’d like to check it out.