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With a critical shareholder meeting just days away and his cash-strapped company on the brink, Blockbuster CEO Jim Keyes remains (at least on the outside) upbeat and bullish on his company’s prospects. Says Keyes:

“The reason I took the job is the same reason why I’m optimistic about the long-term future of Blockbuster . . . The industry is in transition . . . but in change, there is opportunity.”

Keyes says that his company just needs more patience from customers and shareholders as it implements changes to become competitive once more:
“We have been under way with the transformation of Blockbuster for about three years . . . These business transformations don’t happen overnight, yet the expectation of consumers and investors is that these processes will be quick.”
Wedbush Morgan analyst Michael Pachter is less sanguine than Keyes about Blockbuster’s chances, saying the following about BB’s predicament:
“They don’t have enough earnings to cover their interest, so creditors can compel bankruptcy whenever they feel like it.”

Keyes also revealed that his company is considering “revisiting” its agreement with Blockbuster Express kiosk operator NCR. Pachter estimates that Blockbuster is “probably getting only 10 percent” of Blockbuster Express revenue.

What do you think about Keyes’ performance as BB CEO, Insiders? Do you believe any of his “glass is half-full” rhetoric, or is it beginning to wear thin? Let us know what you think in the comments.

(via the Dallas Business Journal)

14 Responses to “Blockbuster CEO: I’m Optimistic About Our Long-Term Future”

  1. Visitor [Join Now]
    NC Red [visitor]

    Blockbuster will need a low overhead to stay afloat. In doing this, BB should buy out NCR, if indeed BB wants 10%-25% of BB Express revenue, NCR could rename the company and BB could not compete with 2 expanding kiosk. BB might want to keep the Mail service for a few more years, until Postage exceeds profitability. So it will most likely be VOD, but with all the competition with Blu-Ray and TV instant content apps I don’t see BB being top dog. So, I’m Optimistic that BB will fail because what BB wanted to change was consumers entertainment habits with the help of the studio’s 28 day delay. Which I doubt dramatically improved profit margins for BB.

    • Member [Join Now]
      Cypherdude [cypherdude]

      Most people don’t want to see their movies on their PC’s. Many people also don’t have a fast enough connection to the ‘Net to watch full length movies. Most movies, even on Netflix, are NOT available on VOD. Moreover, the quality of VOD movies is ALWAYS LOWER than even DVD’s. I can’t see VOD fully replacing even DVD’s.

      • Visitor [Join Now]
        NC Red [visitor]

        Most Blu-ray, TV Set Boxes have internet applications so it’s not on PC’s. Plus, Cable/satellite has VOD services. Also, most New Releases Movies are on VOD. Yes, VOD are compressed but there are SD and HD video’s. Again VOD won’t replace DVD but for Renting it may become a better option;

        1. Always in Stock
        2. NO Late Fee
        3. Hassle Free (Don’t have to leave the House)

        Downside, as you stated VOD requires Broadband Internet or DSL speeds and rental cost are higher than RedBox.

    • Visitor [Join Now]
      John Small [visitor]

      Neither BBI or NCR are making any money on BB Express at the moment.

      BBI is losing money on their rent-by-mail service.

      But really what was Keyes going to say? He’s the CEO, he has to pump the company just like Lowe does even if things are not so great.

      There will be a CH. 11 filing, Keyes knows it, he’s just trying to delay the inevitable.

      • Visitor [Join Now]
        NC Red [visitor]

        Yes, John Small, you are right about BBI losing money. But if BBI stop those services then both Redbox and Netflix might increase their prices because lack of competition.

  2. Member [Join Now]

    leave bb express alone! free movies are great for me!

  3. Visitor [Join Now]
    firstlawofnature [visitor]

    ‘Pachter estimates that Blockbuster is “probably getting only 10 percent” of Blockbuster Express revenue.’

    Only 10%? No way it’s that high. If you took a 10% royalty out of redbox then there would be no operating profits for the division. This is a low margin business and anything off the top, let alone 10% kills the model. Any re-visit with NCR asking for a higher rev share will be accompanied by a swift ‘NO’ because there is no room to pay more. BB express smells like the next total access train wreck.

  4. Member [Join Now]

    I, of course, only wish the worst for Blockbuster. Now they are just a company that will do anything to stay afloat. That’s how they will try to keep afloat, by making Redbox and Netflix sound bad, like here about the 28 day delay (that just really makes me mad, that post). And the thing I don’t get is the people trying to defend them. I’ve gotten in arguments with people online about the company, and they try to tell me that they have a big selection of movies, bigger than Netflix. I don’t think so. And at Netflix, at least there are enough copies where you don’t have to wait forever for a movie.
    I used to love this company. I had good memories of going to their store when I was younger. Now, they just make me sick. (Their gumballs in the gumball machine are the only good thing about them).

  5. Visitor [Join Now]
    Jeffery [visitor]

    BLOCKBUSTER SUCKS????.. They deserve everything that’s happening..OVERPRICED used movies and raising the TOTAL choice package by 100% a few years ago ,got them where they are at…doesn’t BLOCKBUSTER mean Titanic in This ship is sinking and NOTHING is gonna save it.. YAY!!!!!!!!!!!

  6. Visitor [Join Now]
    Dawson Lande [visitor]

    BB deserves everything that they will get…. They didn’t care when they forced all Mom & Pops to close with their revenue share deals with the studios. I was paying $60.00 per videotape and they paid less than 4. Now the studios don’t care if they fail.What goes around comes around.

  7. Visitor [Join Now]
    Maverickjohn [visitor]

    Why worry about ever renting from BB, Red Box, or Netflix?

    I’ve been checking out movies from my local library for a year and a half now, and they have an online reservation service set up for all members. Once a movie gets put in their database you can reserve it.

    I just watched Book of Eli, She’s out of my league, and Green Zone the same week they came out… and it cost me nothing!!!