A popular topic here at Inside Redbox has been the cratering of DVD sales as rentals become more popular. It appears, however, that Blockbuster Video plans to buck that trend. In a recent financial conference, Blockbuster CFO Tom Casey said that the company plans to move away from the movie and game rentals that currently account for about 85% of items in its stores. This ratio will be replaced by the 50/50 rental/sell-through model used in Blockbuster locations overseas. For-sale DVDs and merchandise will become a much larger percentage of in-store items as the company puts more resources into its Blockbuster Express partnership with NCR, as well as its digital delivery and by-mail channels.
Regarding Blockbuster’s expansion of its Redbox-targeting kiosk business, Casey said that the company plans to place many of the new kiosks near shuttered stores.
“Store closings are a nice opportunity to put machines nearby,” said Casey, who said that Blockbuster’s revenue from the kiosks, which are built by NCR, are strictly royalty based and on a sliding scale.
I don’t know about you, Insiders, but I have to admire a man who can use the phrases “nice opportunity” and “store closings” in the same sentence with a straight face. I suppose if I were the CFO of a floundering company with mountains of debt, I would try to find the bright side in everything, too.
In all seriousness, though, do you think these moves are going to help Blockbuster? Can anything help them at this point? Do you see yourself purchasing DVDs from Blockbuster instead of renting them there? We’d love to hear your comments.
[via Video Business]