Back when your local video rental store was your only source for the latest movies, you didn’t really question their purpose. You went in, picked out your movie, and got out. As the years went by, chains like Blockbuster started adding their own version of concession stands - overpriced soda, candy, and popcorn, not to mention the $40 posters of Audrey Hepburn or James Bond. The market was expanding, and so was your friendly local Blockbuster.

Then Netflix came along.

Netflix changed everything. It was no longer okay to just provide a decent selection of the latest DVDs for pickup; Blockbuster had to massively expand their collection and offer an online subscription service to keep up with the changing times. They had the advantage of in-store exchanges for customers who wanted another movie RIGHT NOW, but rising subscription fees caused more and more customers to flee to industry leader Netflix. Some Blockbuster franchises weren’t happy with how the program affected them, and one of the largest franchises has even sued (in the midst of Blockbuster’s counter-suit against Netflix, claiming that Netflix’s patent attempts to establish an illegal monopoly). With one-fifth of the traffic of netflix.com, blockbuster.com floundered.

And so continues Blockbuster’s struggle to stay relevant in an increasingly digital world. While Blockbuster chief executive Jim Keyes says that the novelty of Blu-Ray should keep them in business for five years or so, it’s up to them to make sure they stick around for longer.

Around the Dallas, TX headquarters, several flagship stores are testing out new concepts. These include -

* Opening as early as 6 a.m. for those who wish to rent a movie before work or school
* Offering coffee and fountain drinks
* Free wi-fi
* Playable displays of popular games such as Rock Band
* Selling big-ticket electronics like T.V.s or video cameras

It’s far too early to tell if these investments will pay off. But there’s a distinct possibility that these new and improved Blockbusters may find a way to your town. What do you think? Would you buy a cappuccino or a T.V. from Blockbuster?

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Categories: Movie stories //