Your Blockbuster movie download is just a drive away
In the opening scene of The Player, Tim Robbins' character is meeting with writers who are pitching movie ideas they hope the Hollywood producer will agree to make. One idea is pitched to him as, "It's Pretty Woman meets Out of Africa, without stars."
Applying that Hollywood approach, the latest idea from Blockbuster can best be described as "Netflix meets YouTube, without the convenience." That's basically the pitch Blockbuster Chairman and CEO James Keyes made at his first annual shareholders meeting on Wednesday when he unveiled an in-store kiosk he hopes consumers will use to download movies.
The plan, as outlined by The Hollywood Reporter, is for consumers to bring portable devices into Blockbuster stores and download movies, usually in about two minutes. Blockbuster expects to begin testing the kiosks, which were produced by airline-kiosk maker NCR, in about three weeks. Initially, the system will work only with Archos devices, but Blockbuster expects the kiosk to be an "open system" that is compatible with a range of devices. Keyes declined to predict how many titles will be available on the kiosk, noting that Blockbuster was still in negotiations with the major studios for content.
I wasn't at the meeting, but I have to wonder if reporters giggled at this idea:
Keyes acknowledged that the kiosk pilot is likely coming well ahead of broad consumer demand for such services and should therefore only be seen as one additional distribution channel for the company as it tries to offer entertainment content whenever consumers want in whatever form they want.
"Well ahead of broad consumer demand for such services." Huh?
Talk about an innovative idea. Amazon.com, Microsoft's Xbox Live, and Netflix already deliver movies directly to PCs; TiVo, Vudu, and Apple TV, as well as cable and satellite services offer video on demand to TVs; and electronic copies of movies are being sold alongside DVDs. So what makes Keyes think people want to leave their homes to drive to a store with a laptop-size device to download movies from an ATM?
People don't want to make the trip to the video store. Convenience is why Netflix is kicking Blockbuster's butt. Blockbuster seemed to have a road map for getting back on top with its acquisition of movie download service Movielink in 2007, and its idea for a set-top box for streaming video seemed to show promise (Indeed, my colleague Greg Sandoval reports that Netflix sees video streaming eventually overtaking physical DVD rentals). But this is also the company that has been kicking around the idea of buying electronics retailer Circuit City for $1 billion.
I could see these kiosks appealing to airport travelers, but otherwise this strikes me as an expensive remake of a soda machine.
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Blockbuster plots in-store downloads
Company is in negotiations with studios for content
May 28, 2008
Chairman and CEO James Keyes unveiled the trial Wednesday in his first annual shareholder meeting at the helm of the video rental giant.
But he said the company is still in negotiations with studios about content deals for the kiosk trial.
As a result, Blockbuster will likely have limited movies on offer in the trial, but "we'd love to have everybody" on board for this, Keyes told reporters after the meeting. He declined to predict how many films would be available in the pilot and from which studios.
Keyes acknowledged that the kiosk pilot is likely coming well ahead of broad consumer demand for such services and should therefore only be seen as one additional distribution channel for the company as it tries to offer entertainment content whenever consumers want in whatever form they want.
The download time of the kiosk, designed in its pilot version by NCR, which also builds airline ticketing kiosks, is targeted to get down to 30 seconds over time as Blockbuster is striving for an ATM-like experience, Keyes said.
As demonstrated by the CEO in the annual meeting Wednesday, the kiosk allows store visitors to search and browse for downloadable films, watch trailers and buy or rent movies with a credit card or pre-loaded Blockbuster card. Over time, it will also allow them to subscribe to kiosk or other service usage.
Keyes later told reporters he could envision a monthly subscription fee of $10 along with a free device give-away down the line.
Games would be "a wonderful addition" to the kiosk service in the future as well, he said.
Under his vision, kiosk deployers would bear much of the cost and share in the revenue with studios and Blockbuster.
The trial will launch with a couple of stores in Blockbuster's home market of Dallas and originally work only with devices made by Archos.
However, Keyes said the goal is to add deals with more device makers over time. If successful, the kiosks could over the coming years also be rolled out in locations outside Blockbuster stores, such as at airport gates.
In a demonstration, Keyes rented a movie for $3.99 plus tax via a few touches on the kiosk screen, charged the transaction to a credit card and quickly downloaded the film to an Archos device via a docking station.
Keyes has started redesigning the layout and look of Blockbuster stores, and on Wednesday, he also showed renderings of some of the changes. The renderings showed stores with lower shelves, clearer and more colorful signage and designated areas for electronics, kids offers and the like.
Among the about 50 people present at the intimate midtown Manhattan annual meeting Wednesday were Billboard board members and industry veterans Ed Bleier and Strauss Zelnick. Board member Carl Icahn couldn't make the meeting, Keyes said.
