Blockbuster operates over 7800 stores in 22 countries (2007 Form 10-K). This network forms the basis for delivery of DVDs and video games in both rental and retail formats. The rental market has experienced limited growth in recent years, whereas the retail format has given Blockbuster more robust growth. The second component of the retail mix is the mail-delivery system. Customers order from the Internet, but the content is delivered in hard format in the mail. This channel is modeled after strong competitor Netflix. Blockbuster is working to build their roster of titles for this format and in the past year has focused on adding video game titles.
The third component of the retail mix is online content delivery. This is an emerging channel for Blockbuster, and they are working with technology partners to build out their capabilities with respect to digital delivery. They also purchased Movielink to build out their content for digital delivery (2007 Form 10-K). The fourth channel is comprised of ancillary channels such as kiosks and vending machines. This is another emerging channel for Blockbuster and they have taken steps to enhance their capabilities...
At present, the physical retail channel remains the most prominent, but the other three segments are all growing.
Works Cited
MSN Moneycentral. Retrieved March 20, 2009 at http://moneycentral.msn.com/detail/stock_quote?Symbol=BBI
No author. (2009). Blockbuster Reports Fourth Quarter and Fiscal-Year 2008 Results. Blockbuster Inc. Retrieved March 20, 2009 at http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=553&ResLibraryID=29079&Category=1195
No author. (2009). Blockbuster Further Strengthens Commitment to Multi-Channel Entertainment Delivery. Blockbuster Inc. Retrieved March 20, 2009 at http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=553&ResLibraryID=28119&Category=1195
Blockbuster Inc. Form 10-K 2007. Retrieved March 20, 2009 at http://b2i.api.edgar-online.com/EFX_dll/EdgarPro.dll-FetchFilingConvPDF1?SessionID=nqrSWCEHXPOvo-9&ID=5782688
