Blockbuster Is Turning Profit

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In the age of video on demand, advertisements touting that Netflix (Nasdaq: NFLX) has rented over two billion movies, the pervasiveness of peer to peer (p2p) networks, and the general drum-beat of the demise of video rental, today’s earnings report from Blockbuster (NYSE: BBI) is a shocker:

"Blockbuster Inc., swung to a first-quarter profit amid prior-year termination fees as domestic same-store sales grew for the first time in five years, though total revenue fell amid a decrease in company-owned stores."

(Source: WSJ)


The domestic Blockbuster results — which have improved for the first time in the last five years — were driven by a 20% jump in same-store merchandise sales.

Not rentals. Not through-the-mail rentals, even. By in-store merchandise sales.

Which makes sense. Nowadays if you want to buy a DVD and you want to get it now, where do you go? Wal-Mart or Target? Or Blockbuster, where they always seem to have things on sale because they’re selling lightly used rental disks for $5-$8/each? (heck, I’ve bought DVDs at Blockbuster for $1.99, which is cheaper than renting the movie for a week!)

Anyway, fascinating news. Thoughts?



Blockbuster Is Turning Profit
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About Dave Taylor
Dave Taylor has been involved with the Internet since 1980 and is internationally known as an expert on both business and technology issues. Holder of an MSEd and MBA, author of twenty books and founder of four startups, he also runs a strategic marketing company and consults with firms seeking the best approach to working with weblogs and social networks. Dave is an award-winning speaker and frequent guest on radio and podcast programs.

http://www.intuitive.com/blog/ WebProNews Writer
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