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Blockbuster plans to part with 960 retail stores by end of 2010
Seriously, Blockbuster can't seem to get a break. In a recent SEC filing, the company identified 18 percent of its retail outlets it deemed unprofitable and announced plans to close up to 960 stores by the end of 2010. That's divided into up to 685 by the end of this year and the remaining 275 the year after, but the filing continues to say that up to 1,560 locations, or 22 percent of its total retail coverage, could end up falling the wayside. Another slide indicates how the company sees itself going forward, with an expansion of kiosks and its Total Access subscriber base, and putting OnDemand in "nearly every connected device." Of course, if this brings Blockbuster back to profitability as it expects to be, then more power to it, but it's clear that the one-time king is fighting wars on a number of sides and has a long way to go if it intends to stay afloat, much less reclaim its crown. [Via CNET]
Blockbuster hamstrings Total Access rental plan
You know what the last thing a losing company should do? Something that makes even more of its customers jump ship. As Blockbuster looks to cut costs and buy fewer DVDs from studios, the company is also hoping that Total Access customers don't notice a tiny change (posted in full after the break) in the fine print. Up until now, Total Access customers could swap their by-mail rentals in store for a DVD that didn't count against their maximum out-at-a-time number; starting right about now in most locations, "all free movie in-store exchange rentals will count towards the number of DVDs you are allowed out under your Total Access plan at any one time." Of course, it also removed the return date limitation on all movies rented in-store while still a paying Total Access subscriber, but clearly the cons outweigh the pros here. Anyone considering Netflix now that Blockbuster has pulled a fast one?[Thanks, Michael]
Confirmed: Rhino sold to GameStop [update 1]
As rumored last week, Blockbuster has reached an agreement to sell Rhino Video Games to GameStop. Wedbush Morgan analyst Michael Pachter estimates that GameStop will pay less than $40 million for the small retail chain, which operates 72 locations in the southeastern United States and averages roughly $550,000 in annual sales (per store). Blockbuster has owned Rhino since May 2004, but has elected to divest this non-core asset as the company focuses on its Total Access rental service. GameStop was the obvious buyer, as the umbrella corporation already controls an estimated 98% of the US's used games market.GameStop chairman and CEO R. Richard Fontaine explained that Rhino's integration into the GameStop network would result in "operating synergies." That's business-speak for "no more 2-for-1 trade-ins."Update: clarified revenue averages.
Blockbuster's Total Access plan allows in-store returns of mailed movies
Although Netflix certainly set the precedent with its online movie rental biz, has vowed to support HD DVD and Blu-ray formats, and seems to have an on-again / off-again relationship with downloadable rentals, Blockbuster is busting out a feature that Netflix isn't likely to soon match. Under the newly-unveiled "Total Access" plan, customers will not only be able to return all movies received in the mail to a brick-and-mortar location, but they'll receive "a free in-store movie rental" for their cooperation. The company is hoping to break the 2 million member mark by year's end, and also reported that customers who opt to return their flicks in-store should receive their next movie mailing about "a day faster than if they had returned it through the mail." While we're not sure if every single in-store return will yield yet another free rental (or if it's another "one per month" deal), we're not going to grumble over anything gratis.
