This article was written on August 09, 2007 by CyberNet.
Blockbuster has been on an uphill climb for quite some time now as they try to figure out how to morph themselves into a company that can compete with Netflix. The brick & mortar thing just doesn’t work anymore when people have the opportunity to download movies, or receive them in the mail. Blockbuster got right into the movie mail service, but up until recently, they were still lacking with the option for users to just download movies, something they could easily do with competitors. Aiming to compete with Netflix, Blockbuster has acquired Movielink, a movie download service. Will this help them in their uphill climb?
It’s been interesting to read opinions around the Internet regarding this acquisition and whether or not it will help Blockbuster in the long run. TechCrunch’s title is enough to give us an idea how Michael Arrington feels: “Blockbuster Desperate To Do Something, Buys A Loser.” Arrington explains how Movielink came about and says “Movielink has a very deep library of movies, but they are DRM’d to the hilt and the studios force them to price downloads at higher-than-dvd prices.” If that’s the case, and DVDs won’t be priced competitively, I’d have to agree that this wasn’t a wise purchase.
Blockbuster has been a few steps behind their competitors for the last several years now, and it almost seems that this is their last-ditch effort to keep their heads above the water. Blockbuster’s CEO and chairman Jim Keys said, “Our acquisition of Movielink, with its associated digital content, is the next logical step in our planned transformation of Blockbuster.” At least they have a plan and appear to be pointed in the right direction, but hopefully it’s not too late.
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