Q3 e-commerce revenue up 51% at Blockbuster
E-commerce was Blockbuster Inc.’s only growing sales channel in the third quarter. In Q3 revenue from online movie rentals rose by 50.5% while total revenue declined by 5.3%.
Web revenue rose to $64.7 million from $41 million in Q3 2005 while total revenue declined to $811.4 million from $857.1 million during the same period the previous year. Overall the web accounted for 6.5% of total revenue in Q3 vs. 4% in Q3 2005.
In an attempt to drive multi-channel movie rentals, Blockbuster, No. 70 in the Internet Retailer Top 500 Guide to Retail Web Sites, recently rolled out Total Access, a program that gives online subscribers the option of returning DVDs to a store and receiving a coupon good for a new rental.
"We have taken an important step in the further integration of our online and in-store rental business with the introduction of Total Access, a consumer proposition that will give us a distinct advantage in the rental marketplace," contends Blockbuster chairman and CEO John Antioco.
Blockbuster reported e-commerce revenue for the first nine months of the year of $174.2 million, an increase of 76.5% from web revenue of $98.7 million from January through September 2005. Total revenue for the nine months ended Sept. 30 declined by 4.5% to $2.52 billion from $2.63 billion during the same period in 2005.
By comparison, competitor Netflix recently reported that Q3 revenue rose 48% to $172.7 million and it netted 493,000 new subscribers for a total subscriber base of 5.7 million at the end of the quarter.
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