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Blockbuster has seen some drastic changes to their profits and customer base over the past several years. With Netflix crowding in on the market for internet rental services, as well as the addition of streaming online rental services, Netflix and other competition has been able to take a large portion of Blockbuster’s market away. Not to mention Redbox has also crowded in on Blockbuster’s in-store rental market. Redbox alone accounted for over 77 percent of movie rentals in 2008. It is clear that Blockbuster needs a strategy to gain and retain its market with innovation to its service providing capabilities.
Blockbuster’s answer
Blockbuster took on Netflix several years ago with their version of internet rental systems and will be taking on Redbox through its newly announced Blockbuster kiosk locations. Blockbuster looks to their “Blockbuster Express” for a quick and easy fix to their sales slump, see where kiosks are showing up at bbexpressweb. The plans are to strategically launch around 10,000 kiosk locations through the end of 2009, and further planning has a goal set to reach around 60,000 kiosks by the end of 2010.
Blockbuster’s strategy
Blockbuster has been promoting their new kiosk locations with free rental code coupons which can be found on certain websites like this one: coupondad.net. The rentals are relatively cheap at a $1 a day, which is below the standard for the competition pricing. The addition of these kiosks to Blockbuster’s arsenal could help boost their user-ship through reviving their strategy in gaining and maintaining their impulse customers, and customers that have on-demand needs.
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