Monday, May 26, 2008

Blockbuster gets aggressive

Blockbuster is unveiling plans to compete with Netflix when it launches its interactive kiosk system. These will be situated in several Blockbuster stores starting in June. The company has been testing the kiosks from NCR Corp and is also currently in talks with web ready handheld device manufacturers. According to Jim Keyes, CEO of Blockbuster, “We are actively exploring options to distribute that entertainment content to our customers via many different digital platforms that are available and emerging in the marketplace.”

The company is also growing its collection of movies. Blockbuster started acquisition talks with Circuit City in April this year and is moving fast looking to increase it's presence in the digital entertainments distribution industry. Another new launch from Blockbuster will be its download service which will also start in June, and has been done with a tie up with Movielink LLC.
Blockbuster is pursuing new e-commerce initiatives at the same time it’s working to improve the overall performance of the business. In the first quarter Blockbuster posted net income of $45.4 million on revenue of $1.39 billion, compared with a net loss of $94.4 million on sales of $1.47 billion for the first quarter of 2007. Revenue declined as a result of operating fewer stores, the company says. Blockbuster no longer breaks out e-commerce numbers in its quarterly earnings.

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