Blockbuster, Too Clueless To Succeed?

Faltering media giant Blockbuster continues to prove it has no idea how to compete in the digital age. For some strange reason they seem to think DVD kiosk service Redbox is direct competition. In response to this, Blockbuster has decided to bring its own kiosk to market.

The kiosk would allow customers to come into the store with an SD card onto which they can download a movie.  The SD card could then be used in any number of digital devices.  CrunchGear, who reported the story, makes the comment, “…it’s a step in the right direction.” I have to disagree.

As noted above, Redbox is hardly Blockbuster’s competitor.  Netflix is.  On a less legit level piracy is as well.  With digital downloads becoming the norm what good will an in-store kiosk do?  That doesn’t solve the problem of inconveniencing customers to leave their house, drive to a store, rent a move, then drive home.  In contrast, Netflix clearly has eliminated this with both their primary services: mail delivery and/or video streaming.

Until Blockbuster recognizes that they have to change or enhance their business model they will continue to fail.  Further, it’s almost as if Blockbuster doesn’t want to even acknowledge Netflix.  The company has been around for years, chipping away at market share, yet Blockbuster has yet to really go head-to-head with them.

Instead, the company continues to offer less then stellar ways to compete.  The first being no late fees, the second being these kiosks.  Neither will help.  Further, with Netflix having inked deals with Microsoft and Sony to get their content on the company’s respective video game consoles (the Xbox 360 and PlayStation 3) they’ve effectively blocked Blockbuster from the living room once more.

I don’t feel there’s much fanfare to be made over Blockbuster’s kiosk plans.  In the grand scheme of things this move doesn’t bring any added value to the consumer.  Wake up, Blockbuster.  The future is all about digital, and not physical media.

*Incidentally, I think Redbox isn’t going to make it either.  The DVD rental box service didn’t work in the nineties, it won’t work now.  Digital or bust.