Blockbuster Please Give UP
“Obviously in the long-term, it will all be digital,” said Kevin Lewis, head of Blockbuster’s digital strategy. “The future is streaming,” said Steve Swasey, Netflix’s VP of corporate communications.
For both Blockbuster and Netflix, the future is digital. Blockbuster’s brick-and-mortar business is costing them serious cash, and its stores are rapidly shutting down. When did you last go and rent a movie? Old school!
Blockbuster’s by-mail solution, its response to Netflix’s service, accounts for just 2% of the market. Netflix boasts a 97% share.
Yet even with its success in the DVD-by-mail market, Netflix is hurting, it’s the postal service’s largest single customer, spending over $600 million annually in postage fees.
Both companies are already online: Netflix’s streaming service reaches more than 60% of its subscribers, and Blockbuster On Demand is becoming a worthy competitor to Comcast.
Today Netflix released its free app for the iPhone and iPod Touch, essentially a pocket-version of its popular iPad app. Blockbuster has also ventured into the app market, and now comes default on the Droid X.
Well let’s see how the story pans out…We say, Blockbuster you need a lot of good luck! You were a leader, although it now looks as though you are just a copy-cat.
Filed Under: Movies • Social Media
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