Do you remember that glorious moment when you found out about Netflix? DVDs of your favorite films and television shows MAILED to you? Yes, that’s right, Netflix proudly proclaimed. Soon enough, your neighborhood Blockbuster store, which you trekked to about once a week was gone and replaced by a Wells Fargo or something. Well, you might think most Blockbuster brick-and-mortar stores are gone, but on the contrary, Blockbuster, who reported a 9 percent rise in store revenues in their second quarter, which ended on June 30, plans to increase its stock of rental and retail movies and games, as well as revamp their stores with new paint, carpeting and the addition of Blu-ray kiosks, reports the Los Angeles Times.
“Most people read a lot of interesting headlines, and we enjoy the headlines, about Netflix, Amazon, Apple, so forth,” says Tom Casey, Blockbuster’s chief financial officer, during a presentation at Thomas Weisel Partners’ Annual Consumer Conference on Tuesday. “But what you need to understand is we really have a market that we address that’s nearly $36 billion in size. Video-on-demand is actually pretty small.”
That $36-billion figure is the total market for DVD’s and game sales — where Blockbuster has been expanding — and movie rentals. Blockbuster has a 40% share of the $9.6 billion movie rental business, of which in-store rentals account for more than half the total revenue, followed by mail subscription and video-on-demand, according to the company.
With these new revelations in tow, you might consider visiting your closest Blockbuster store, just for old times’ sake.
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