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Archive for February, 2010

One of the great success stories in the movie rental business over the last decade has been by-mail and streaming renter Netflix. The company’s subscriber base has almost tripled since 2005, and stock analysis service Trefis is forecasting that  Netflix will grow from 14 million subscribers at the end of 2010 to 28 million by 2016.

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The by-mail and streaming juggernaut that is Netflix has achieved a significant milestone in the video rental business. Netflix earned more than $444 million in Q4 movie rental revenue in 2009, while Blockbuster brought in just under $400 million. This is the first time Netflix has surpassed its BB rival in domestic rental revenue since Netflix’s launch.

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As if there wasn’t enough blood in the water already, Blockbuster has released its numbers for the crucial fourth quarter of last year. The results are disastrous, as anticipated. During the 2009 holiday season Blockbuster posted a quarterly net loss of nearly $435 million, compared with a net loss of nearly $360 million during the same period the previous year.

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NCR Corp., which licenses the BB name for its Blockbuster Express rental kiosks, may be interested in more BB properties, according to one analyst. Gil Lauria, an analyst with Wedbush Morgan Securities, says if the opportunity presented itself, NCR could acquire Blockbuster’s by-mail and on-demand services. Read the rest of this entry »

In its latest refusal to go quietly into the night, Blockbuster has announced a partnership with wireless carrier T-Mobile for an OnDemand movie download service. The first device the service will be available on will be the HTC HD2 smart phone, which hits stores on March 24. Additional phones from Motorola are also expected to offer the service by year’s end.

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In a move likely to shake up the VOD market, retail giant Walmart announced on Monday that it was purchasing online movie service Vudu for an undisclosed sum. Other suitors for the firm included Best Buy, Amazon.com and Comcast.

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Negating one major advantage previously held by Redbox kiosks, Blockbuster Express now allows you to rent a title on its website and pick the disc up by 9 p.m. the following day. The process is simple and very similar to the one used on www.redbox.com, allowing you to browse the availability of titles at a local kiosk and reserve your disc for pickup.

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According to Pali Capital analyst Richard Greenfield, an often outspoken critic of Redbox’s business model, the new 28-day Warner delay deal the company recently signed will bring benefits to Blockbuster Video, as well as VOD distributors and Apple. Home Media Magazine quotes Greenfield says that BB is “largely immune from the embargo by virtue of a multi-platform distribution strategy that allows consumers to rent and buy movies in-store, by mail, kiosk and electronically”.

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Here are the titles you can expect to see at Redbox this week. What are your favorites?

Everybody's Fine PG-13
Starring: Drew Barrymore,Kate Beckinsale,Robert De Niro
Genre: Comedy,Drama,Drama
Release Year: 2009
movie details / trailer
Hurray for Huckle! Zooming Around Busytown NR
Starring: NA
Genre: Family,Animated,Kids,Family
Release Year: 2007
movie details / trailer
Motherhood PG-13
Starring: Anthony Edwards,Uma Thurman,Minnie Driver
Genre: Comedy,Drama,Drama
Release Year: 2009
movie details / trailer
Sorority Row R
Starring: Briana Evigan,Audrina Patridge,Leah Pipes
Genre: Horror,redbox Replay,Horror,Thriller
Release Year: 2009
movie details / trailer
The Damned United R
Starring: Michael Sheen,Jim Broadbent
Genre: Drama,Biopic,Drama
Release Year: 2008
movie details / trailer
The September Issue PG-13
Starring: Anna Wintour,Grace Coddington
Genre: Drama,Biopic,Documentary
Release Year: 2008
movie details / trailer
Triangle R
Starring: Melissa George,Michael Dorman
Genre: Horror,Horror,Thriller
Release Year: 2009
movie details / trailer
Wrong Side of Town R
Starring: Rob Van Dam,David Bautista,Ja Rule
Genre: Action,Drama,Drama
Release Year: 2009
movie details / trailer

By the middle of the summer, Redbox will be closing its call center in Downers Grove, Illinois. The closure will eliminate 200 jobs—about 8% of the company’s total workforce. Redbox has already begun outsourcing its call center operations to a third-party provider with locations in Texas and Canada.

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