The web reactivates old customers and attracts new ones, Blockbuster says
Blockbuster Online, launched in August, is bringing incremental business to the retailer, a trend which is expected to continue this year. “We are ahead of our subscriber expectations, and a full three-quarters of our Blockbuster Online renters say that they are likely to recommend the service to others,” chairman and CEO John Antioco told analysts recently.
In addition, the online service “is allowing us to attract new customers and reactivate customers who are no longer visiting one of our stores,” he said. “More than half of our online subscribers have not shopped in our stores during the past 12 months.”
Blockbuster Online has been adding subscribers at about 10,000 per day, Antioco said. The online service has resulted in a slight decrease in store spending by previously active in-store customers, “although their overall spending has increased significantly,” he said, adding that when it “all nets out, we believe we will be seeing increased store revenue and increased total company revenues.”
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