Last week Blockbuster released their thrid-quarter results, the company has taken a net loss of $35 million. They have also closed 526 stores in the past year, looks like the idea of returning DVDs to the store (one of the biggest benefits of Blockbuster’s Netflix competitor) isn’t going to be the best way to attract customers.
“Blockbuster Chairman Jim Keyes said that his company’s focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants to focus on increasing overall membership.” –Cnet
This is quite the surprise to me, I was actually expecting Blockbuster to put up a much better fight against Netflix, I guess the revenue from Total Access (Blockbuster’s Netflix competitor) wasn’t enough to support all of the stores.
I don’t really see how Blockbuster can pull themselves out of this hole. Blockbuster spent too long charging their customers unbelievable late fees and I think that customer loyalty has slipped beyond repair. Netflix has taken over the market because of the websites ease of use and good standing on customer service.