Blockbuster Video Activist Presentation Deck
Poor Execution of its Multi-Channel Distribution Strategy
While Blockbuster's base of brick-and-mortar stores have suffered, it's
multi-channel strategy has been poorly executed:
Online/By Mail Subscribers: As of December 31, 2005, there were
approximately 1.2 million BLOCKBUSTER Online subscribers vs. 4.2
million for Netflix, a difference of 3 million. As of December 31,
2010, Netflix had grown to over 12 million subscribers while
Blockbuster had last reported just 1.6 million subscribers as of October
2009. For every one subscriber Blockbuster added during that time
period, Netflix added 20.
Kiosks: Redbox locations grew from <200 in early 2005 to 24,000+
kiosks during Fernandes' tenure on the Blockbuster Board, generating
$773.5 million in revenue in 2009 from kiosks.
To date, Blockbuster has not reported a single dollar of revenue from
its kiosk deal with NCR, due to poorly negotiated terms- yet these very
kiosks are competing with Blockbuster's own stores.View entire presentation