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Hardware Blockbuster to Promote Blu-ray Disc With In-Store Kiosks
Marcus Yam (Blog) - April 14, 2008 10:06 AM

13 comment(s) - last by feraltoad.. on Apr 14 at 7:32 PM

Blockbuster to push Blu-ray Disc with in-store HDTV and PS3

While standard DVDs are still the overwhelming format of choice for the mass market, corporations are looking to high-definition as the next growth frontier. Blockbuster announced last week that it will begin ramping up even further promotional efforts to present the virtues of Blu-ray Disc to their customers.

Blockbuster will install in select locations special Blu-ray Disc kiosks equipped with a 42-inch HDTV and PlayStation 3 console. Movies will run on the kiosk, enabling customers to view high-definition picture quality. Blockbuster also pointed out that its kiosks will also drive home the point that PS3 consoles double as Blu-ray players, though it’s unclear if Sony had any part in planning the kiosks initiative.

For its rental-by-mail service, Blockbuster will now offer subscribers a Blu-ray preference setting so they can automatically indicate that they want to receive all available movies in the high-definition format. Blockbuster’s online service will also continue to serve all available HD DVDs for customers who demand that particular format.

Last summer, Blockbuster was one of the first corporate giants to dump HD DVD in favor of Blu-ray Disc. The rental firm said in June 2007 that it would rent only Blu-ray Disc movies in 1,450 stores that offer high-definition options, while only 250 of its pilot stores would also stock HD DVD.

"Blockbuster was the first national retailer to accurately recognize and react to consumers' preference for this format when we added Blu-ray discs to a large percentage of our stores last summer," said David Podeschi, a Blockbuster SVP. "Now, with this national rollout, we believe Blockbuster is perfectly positioned to drive consumer adoption of this next generation DVD format and to become the customer's headquarters when it comes to renting or buying Blu-ray movies, whether in-store or online."

Podeschi continued, "Our mission at Blockbuster is to provide consumers with convenient access to media entertainment -- whether that's with Blu-ray or standard DVDs, retail or rental, through our stores, by mail and through new technologies."

Besides DVD and Blu-ray Disc, Blockbuster is also exploring the realm of digital delivery. The company revealed last week that it plans to offer rentals as part of a streaming online service, likely through its Movielink property.

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focus on stores that don't already have bluray

By TheSpaniard on 4/14/2008 10:36:56 AM , Rating: 2

This has already been out in West Palm Beach, Florida... I think they should be putting Bluray in more stores... Cape Coral, Florida still believes that Bluray may not win???

RE: focus on stores that don't already have bluray

By hdfan on 4/14/2008 10:39:38 AM , Rating: 2

Ditto here. This is not news around here. news around here is this possible buyout of circuit city by blockbuster.

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RE: focus on stores that don't already have bluray

By Hiawa23 on 4/14/2008 11:26:58 AM , Rating: 2

not surprised by this. What would they support, othewise, DVD?

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RE: focus on stores that don't already have bluray

By omnicronx on 4/14/2008 12:06:37 PM , Rating: 4

quote:
What would they support, othewise, DVD?

They would support a piece of paper with brail on it as a format if it had margins anywhere close to that of BD ;)

It will not surprise me one bit if the studios and rental companies like blockbuster do all that is within their power to keep BD prices high, leaving it as a niche market. The last thing these companies want is for BD too take off quickly and have prices drop to DVD comparable levels. They will try and keep BD as a high margin product as long as they possibly can.

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RE: focus on stores that don't already have bluray

By Tonny Tech on 4/14/2008 12:45:14 PM , Rating: 2

Looks like they used South Florida as a test market since they have been doing the Blu-ray kiosk for a while here in Miami Beach.

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RE: focus on stores that don't already have bluray

By HighWing on 4/14/2008 12:46:23 PM , Rating: 3

quote:
Florida still believes that Bluray may not win???

Let me guess HD-DVD demanded a re-count to see how many people in Florida are using Blue-ray vs HD-DVD?

*laughs* sorry I couldn't resist

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RE: focus on stores that don't already have bluray

By feraltoad on 4/14/2008 7:32:23 PM , Rating: 2

Zing!!!

I think they are going back to Film Strips because they are easier to understand and operate. Michael Bay is happy that his movie is available in the best format.

"Omg, you're a robot!" BEEEP "Before time began, there was the Cube. BEEEEP We know not where it comes from, only that it holds the power to create worlds and fill them with life. BEEEEP That is how our race was born. BEEEP

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BD Kiosks, PS3, Store Availability

By Ashrac on 4/14/2008 2:40:02 PM , Rating: 4

I live in Northern VA, Alexandria Area, within 5 miles of me are roughly 5 Blockbusters. 3 of them have Blu-ray, 2 of them don't, including the closest one to me. When talking to the manager of the closest blockbuster that stocks Blu-ray, she told me that it's very strange how they pick the stores has to do with total rental turn-around not local population. Basically high volume DVD rentals means it's not as important to move Blu-ray. She also mentioned that stores that have had those kiosks over the last few months, are the stores that needed help in moving any type of discs. (ie. stores that saw low amount of overall rentals).

Now the kiosks are starting to be placed in all the stores that offer Blu-ray and they are going to be expanding Blu-ray to stores that do not). What a lot of people don't realize is, Blockbuster Online also has a very large collection of Blu-Ray discs that you can rent for the same price as the DVD set, and then exchange in-store for another blu-ray.

I used to think Blockbuster was the devil with their old late-rental fees, lord knows I paid those countless times, but ever since their change to "life without late fees" I really find nothing to fault them with. This is one company that has made a lot of moves to make customers happy while increasing their profits.

The new game preorders are like that. As the manager explained to me, they are already open to at least 12am on release dates, so they just stay open now till 15 mins past, and let people buy full game-preorders from them. You can put money down on the pre-order everytime you come into the store to rent/return movies. They have seen very positive response from the new pre-order sales. (GTAIV was the first offering of this)

RE: BD Kiosks, PS3, Store Availability

By SunAngel on 4/14/2008 3:02:27 PM , Rating: 2

When you go back to that store asked if that store is a company store or a franchisee. I am willing to bet it is a franchisee. She doesn't sound to bitter because blockbuster as a whole is spiraling out of control, but her particular store might be doing okay.

As far as the Blu-ray/PS3 kiosks are concerned, maybe not a bad idea to showcase movies on a nice HD flatscreen, but definitely not a good idea to actually playing games (in the store) and hoping to sell consoles or games. Two things keep that from being a good idea: zero return policy on hardware (after purchase must deal directly with Sony), and their selling price will probably never ever be able to beat Amazon or WalMart.

So, in a nutshell, okay to showcase movie trailers and game demos. But, that is as far as it should go.

I am hoping BB can rebound from their management blunder before its too late.

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Let me get this straight...

By sweetsauce on 4/14/2008 5:08:46 PM , Rating: 2

quote:
"Blockbuster was the first national retailer to accurately recognize and react to consumers' preference for this format

Im pretty sure it should read, "Blockbuster was the first national retailer to screw customers into having one choice for High Def home video, and now were going to make sure it pays off or were screwed."