Blockbuster CEO: Here's Four Reasons Why We're Not Dead Yet!

jameskeyes blockbuster ceo tbi

Blockbuster CEO Jim Keyes sat down with Ben Fritz of the LA Times to explain why no one should count Blockbuster out just yet.

It’s a difficult argument to make.  Blockbuster is in the midst of closing more than 500 of its stores after the company ended 2009 with $963 million of debt and a $1 billion loss in revenue. 

Redbox and Netflix continue to dominate market share, and Blockbuster has even admitted that bankruptcy could be a possibility.

But Keyes is convinced Blockbuster will survive.  Here are the highlights from his interview with the LA Times:

  • Blockbuster customers want to go to a physical store to rent a movie — at least, those who want to see a movie as soon as its released, want to.  He provides an analogy: “If I want to buy an obscure book title, I’ll go to Amazon.com.  But if I want to browse and see what’s new, I will go to Barnes & Noble.”
  • Blockbuster’s new-release deals with Warner Bros., Fox, and Sony are game-changers.  “Blockbuster can restore consumer relevance because we do carry new releases,” Keyes explained.  “Our recent agreements give us the privilege of day-and-date content across our channel.
  • Blockbuster’s kiosks are better than Redbox’s.  Because the kiosks are “an extension of the store,” they will never be out of stock.  Also, you can return your store-rentals at the kiosks and vice versa. 
  • Blockbuster-On-Demand is NOT less convenient than Netflix.  To rent a movie on Blockbuster-On-Demand, you must pay each time you download (opp posed to Netflix’s monthly subscription model.)  According to Keyes, this strategy is better because the pay-per-view model is designed for customers who want to watch new releases.

Keyes makes a few decent points, but it seems Blockbuster is still doomed.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.