Where and what is going to happen to all the DVD rental businesses? Netflix and Redbox are all that will remain. That would have proved true if one man didn't come from the sky wearing a red cape. Greg Meyers, who was previously ignored by Blockbuster, just invested in a significant share of Blockbuster stock when at an all-time low. His goal: to save the chain.Greg in 2005 advised Blockbuster to invest in rental kiosks which would remain outside of each business just like the Redbox currently operates which would save money on keeping the store hours limited to peak times while maintaining available rentals at all times. The company denied the idea and changed nothing. The lack of change ended up the downfall of the stock and made the stock low enough to purchase for Greg, which now is submitting to his desires. He has implemented a 28 day exclusive rental window, and plans to implement the kiosk in the future.
Too bad Hollywood video gave up a couple years ago, and has instead decided to allow their company to cave in on itself. Each store, one by one is turning into a "budget" store which sells the entire store inventory until it is completely sold out, then closes. The stores with better business stay open longer and sells the company's film inventory.
All in all, it looks like we will be able to make a last minute, Friday night decision to rent a movie from a library larger than the 20 movie library with limited stock from Redbox, or having to wait a few days for Netflix. As we will find Netflix more enjoyable and cost less, we still have options thanks to Greg Meyers, at least for now.
Blockbuster may be sneaking back into contention, but with what honor? We have seen images of advertising by Blockbuster which wages war against Netflix and Redbox by promoting the availability of the movie "The Blind Side" as it is appearing on their advertisement to be only available to Blockbuster. That is just dirty... I think it would be dumb to start a war with the upcoming and potential long running powerhouse that is, Netflix. Unlike Blockbuster, Netflix carries films from all over the world, from cult films, foreign films, to the latest films. If you want to find a rare film to rent, your best chance is Netflix. Who is actually limiting who? If I want a specific film which isn't a new release, I am surely not bound to find it at Blockbuster. Even if they carry it, it isn't likely to be in stock.
Time will tell what Greg Meyers brings to the table, but it wouldn't be a wise business decision to start war so early. When a boxer gets knocked down, he should gather himself up again before throwing another punch, but who am I to tell Blockbuster what to do...
