Blockbuster Video – The Next Casualty of the Digital Era?

Viel hat sich demnach nicht geändert bis zur Jahrtausendwende, als Benn in der \

I am 24 years old and I have not a DVD in the last 3 years because I could see this coming for a while. Why invest in dead media?

Teenagers 10 years younger than me already have no idea what a CD is and wonder why anyone would want one. It will be because of that generation video stores will become extinct.

If it doesn’t play on an iPod, or if it can’t be downloaded and streamed to your TV, it is a dead technology as we know it.

Interesting little tidbit on the short-term squeeze – out:

One of those video rental kiosks opened up in my neighborhood about 6 months ago… right in between two quirky little independent video stores, and just down the street from a Blockbuster and Rogers Video.

Interestingly enough, it was the kiosk that didn’t make it, and 3 of the 4 video rental places are still standing, while Rogers has shut down. Not sure why, but it seemed odd.

Steve, you talk about the demise of the CD – my wife’s a teacher and recently brought in a DJ to do a fun music lesson on the history of the art form. Of 30 grade 8 students, not a single one had ever even seen a vinyl record before. Mind boggling how fast old formats are completely errased from our social consciousness.

Good observation Denis. I imagine, to start with there will have to be some support structure around these kiosks. You can’t just plop one on a street corner and expect it to take off (especially not next to a big shiny Blockbuster with impressively alluring displays). A good model is probably to start in convenience stores where clerks can help people use the technology or in lobbies of large condo buildings where people can appreciate the convenience. I think side-by-side with a regular video store this will be a tough proposition, especially next to local independent video stores, where poeple (well me anyways) go because of the relationship and loyalty factor. Thinking about the value of the kiosk, maybe this is actually a good way for local video stores (that usually have limited shelf space) to compete with the Blockbusters of the world by carrying larger libraries of titles via in-store kiosks, but still offering the quirky, personable value-add.

Federico Sanchez points to an interesting article from Reuters talking about how Blockbuster is planning on testing kiosks in Pizza joints and Dollar Stores; however, the main focus will still be physical stores. From the Reuters article “Convenience is golden in video rental market“:

“But Blockbuster’s main focus is trying to build its in-store business. It plans to offer simpler pricing, beverages and children’s areas as well as concentrate on DVD sales as well as rentals. Blockbuster declined to disclose the costs involved.”

This, despite the fact that,

“The amount of money spent on renting movies via digital delivery is seen rising to $412 million in 2012 from $28 million in 2007.”

Says JP Morgan analyst Barton Crockett,

“We are concerned long-term about competitive threats from Netflix, kiosks and new home video technologies. We do not know if new store formats, expected to be widely deployed in the second half of 2008 or 2009 will work.”

Thanks Federico!

There is a video on youtube about a new dvd rental kiosk. Never seen it anywhere else but it sound good. What do you think it is…who is behind it? Maybe Blockbuster would survive if they did this.

http://www.youtube.com/watch?v=yY_UAbXfWcg

I tried those kisk, they are a rip off.

Just do what I did and get a free month of bb online, here are some codes:

http://www.flexdeals.net/deals/index.php?page=blockbusteronline