Blockbuster takes aim at Netflix subscribers with new holiday promotion
Blockbuster Inc. today fired another volley in its ongoing battle with Netflix Inc., giving Netflix subscribers the opportunity to participate at no cost in Blockbuster’s Total Access program that allows online movie renters to return DVDs in the mail or exchange them at participating Blockbuster stores for free in-store movie rentals.
Through Dec. 21, current Netflix members can exchange the tear-off address flaps of their Netflix rental envelopes and receive on-the-spot free movie rentals from Blockbuster for every flap they bring in to any of the more than 5,000 participating Blockbuster stores. Netflix customers do not need to subscribe to Blockbuster’s online program to participate. However, they do need to sign up for a free store membership.
“Many movie rental decisions are made within a few hours of the actual viewing experience, and Blockbuster Total Access is the online rental service that can respond to spontaneous rental needs through a retail network as broad as the 5,000 participating Blockbuster stores,” says John Antioco, chairman and CEO of Blockbuster, No. 70 in the Internet Retailer Top 500 Guide . “We think avid movie fans, including those currently using another online service, will appreciate the flexibility our online rental program provides.”
A spokesperson for Netflix, No. 21 in the Internet Retailer Top 500 Guide, says the pure-play online DVD rental service isn’t worried about Blockbuster’s most recent promotion, adding that the “convenience of Netflix is you don’t ever have to go to the video store.”
The Blockbuster promotion is a sign of desperation from a competitor that is losing money in its stores and not making a dent in Netflix’s market, he says. “It’s like that old football play where you throw the ball as far down field as you can and hope for the best,” he says. He notes that Netflix has grown 100% in less than two years and expects to have 6.3 million subscribers by year-end.
Netflix CEO Reed Hastings is a keynote speaker at the Internet Retailer Conference & Exhibition, June 4-7 in San Jose.
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