RSSBlockbuster tries another approach in battling Netflix, with a kiosk
By Tim Conneally | Published May 29, 2008, 1:51 PM
Blockbuster and Netflix have been battling for home video supremacy for long enough to almost declare a winner, and the dual investor meetings held by the companies shows where the real disadvantage lies.
Blockbuster's more than 7,800 retail stores in the US are beginning to appear more of an onus than an asset.
However, the company remains strident in its support of physical locations with the unveiling of its Blockbuster kiosk prototype. Produced by NCR Corp, the kiosk allows for in-store downloading and will enter test markets in three weeks. The kiosks will reportedly offer compatibility with a specific Archos personal media player, but Blockbuster intends to make them compatible with a wider range of devices by the time they see a national rollout in two to three years, according to company forecasts.
NCR had a banner year in 2007, reporting record year-over-year revenue growth. A look at the company's other offerings gives a general idea of what to expect from Blockbuster's kiosks. NCR's Xpress Entertainment Kiosk, for example, is an 800 pound, 82 inch tall Windows XP machine equipped with an Intel Core2 Duo 3.0 GHz processor, with 1 GB of RAM, an 80 GB HDD, and a 13.56 MHz RFID reader. These behemoths are capable of holding 948 DVDs for sale or rent, and provide a touchscreen interface from NCR's Touch Automation.
Though Blockbuster's kiosks will serve a different purpose from NCR's Xpress Entertainment modules and therefore not be such magnificent wastes of space, one problem still remains: You will have to physically go to a Blockbuster location to download movies.
Still, Blockbuster CEO Jim Keyes has been quoted as saying these machines afford a "terrific opportunity to transform [Blockbuster's] stores."
Netflix, on the other hand, has already anticipated the remaining lifespan of hard copy media, and has already begun its transition into a video download service. The company's recent release of its first dedicated set-top box will soon be followed by new versions from major consumer electronics manufacturers.
Though it has been reported that Netflix currently streams only 10 percent of its catalog thus far, and that its investment into providing downloads will not pay off for several years, the outlook for that company is strong -- or at least, stronger. Netflix simply does not have the real estate issues that Blockbuster has, and is better suited to transition with the home video market's continued move toward pure data.
"Movies are usually available for purchase a couple days after they hit the rental stores." ~ comment is strange. Where I live movies are available for sale the same day they hit the rental shelves. The future of watching movies at home is streaming anyway.
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|Movies are usually available for purchase a couple days after they hit the rental stores. Blockbuster is so expensive you're better off just buying the darn thing. This download kiosk is something I've long believed would work in music stores, but I'm not so certain about video outlets. It would be very nice for those of us who live miles from town without broadband - we could download a rental that simply expires in a few days..no need to mail anything out or burn that expensive gas returning discs. But again, it comes down to cost. Blockbuster is the most expensive video store in my area and their large selection is their only advantage.
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|The problem I see with Downloading over the Net is not everyone has Broadband, where I live the only broadband available is either HughesNet Sattelite or a Broadband wireless card from a Phone Company and then the signal still isn't that great. HughesNet only allows you 200MB before they drop your connection speed back to pre 1950's level (I was getting about 1.2Kbps) and now most of the Wireless services are putting a limit to how much bandwidth you can use in a month.
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|Yeah, thats not entirely true, there are still people that don't live in their parent's basement and or appreciate sunlight and do not represent the lazy american stereotype...
If I go to a blockbuster and they get 100 of one movie in and its all gone that day, I would say your analysis would be incorrect...
One smart thing they did do was eliminate late fees BUT now if you keep it for past the 5 day grace period (which is plenty of time to watch a movie) you own it.
Makes sense in a business standpoint as if your product is out longer then the allocated time and people want to rent it but its not there they lose money each time that happens, which was probably a lot when they only charged you 1.25 for bringing it back late
The do need to offer some kind of download service that can be utilized at home and the store though...
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|Dear blockbuster,
People don't want to leave their homes (at least past their mailboxes) to watch their entertainment media.
Love,
World
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|Agreed. Why would I want to drive to Blockbuster to download something when I can do so from home? Crazy.
I guess it would be ok for people without broadband, but still... I think they are misdirected on this one.
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|Every once in a while a post like this makes it worthwhile to bother reading BN :-)
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