Thursday, December 6, 2012

Blockbuster & Mobile?

Found this article interesting as I hadn't heard much about the chain recently:
http://adage.com/article/media/dish-s-blockbuster-begin-selling-phones/238633/

Given the decline in video rentals at retail (I don't know when I last saw an actual brick and mortar video store), I wonder why Blockbuster stills remains open as a video rental location at all.  It has declined from 9,000 locations in 2004 (when owned by Viacom) to less around 854 stores now (since Dish Network acquired the chain out of bankruptcy in 2011).  Plus Netflix seems to capture the only video customer that isn't already getting videos through their cable network or online.

My questions of why Blockbuster still has a retail presence at all was then answered by the latest rumors about Dish Network venturing into the mobile space.  Recently, Blockbuster started selling mobile phones (featuring carriers such as Verizon, Sprint, and TMobile) on its website under a banner called "Blockbuster Mobile."  This is apparently now going to extend to Blockbuster retail locations as mobile phones will be sold there as well.  I guess I could understand that this is Dish's method of entering into the mobile space in order to offer its own mobile service, but I feel like the branding and the product confusion is a little too much right now.  The confusion doesn't enable them to complicate available services or products without clearly defining the realm and the branding.  I think Dish Network needs to take a step back and figure out it's focus and define it's brands and strategy.

 

 

2 comments:

  1. Blockbuster has new kiosks in Duane Reade by me... Maybe they will sell disposable phones for drug dealers from the Kiosks? Seriously, I think you are spot on, Blockbuster is broken and the Satellite providers will be following suit shortly. Cable and Telecoms at least have broadband to keep them relevant.

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  2. I've wondered the same thing for a while now. In fact, I often go into the Blockbuster across the street from me to browse for movie ideas before logging onto Netflix, Hulu, Amazon, etc...I think the tendency to browse for products at brick and mortar stores before making purchases online speaks volumes for the entire shopping ecosystem. While I couldn't have predicted Blockbuster's venture into mobile, it seems to me that somewhere down the road we will see stores replaced more or less by display kiosks showcasing products and then directing customers online. It'll no doubt save on overhead but I'm sure I'll miss the actual browsing experience.

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