Advantage Netflix, here’s why:
Blockbuster announced yesterday (in this press release) that they’ll be starting to put DVD “ATMs” (like a Redbox) in some stores as a trial. What? Now? After you’ve put out a digital kiosk that people can download to anything that not’s the most popular music/video player?
Look, I’ve bashed Blockbuster back and forth for months about their plans, and this just continues to cement my feeling that they just don’t get it.
I’ve suggested ways for them to improve their business, but it seems only Netflix has listened to the ideas.
Netflix’s library continues to impress me, as we keep renting classic films like North By Northwest along with brand new DVDs. Plus, Netflix “Instant Watch” option is gaining signficant traction with Roku’s little device plus the fall upgrade for Xbox360 owners. Both of these will allow Netflix subscribers to watch those instant movies on their TVs — something that can’t be done by any of Blockbuster’s products.
Blockbuster may have the immediacy of picking something up at one of their many locations, but why go to the store when Apple’s device, Roku’s device, Microsoft’s device, and Sony’s device all allow you to download films and watch them on your TV, in the comfort of your own home.
Putting DVD “ATM” in your store is like putting a ATM inside the bank. Sure, it might have a little use for customers, but it’s not nearly as effective as putting them in a new location to grow your distribution, or in drive-thru areas so Blockbuster patrons don’t have to get out of their cars.
Seriously, Blockbuster. I’ll consult for you.

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