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Huh?

Submitted by slimshady180112 on September 23, 2007

Category: Social Issues
Words: 1264 | Pages: 6
Views: 114
Popularity Rank: 101,553
Average Member Grade: N/A (Add a Comment / Grade this Paper)

In January of 2007, John Antioco, 57, then Chairman and Chief Executive Officer of Blockbuster, was interviewed by the New York Times about Blockbuster's plans to roll out its own digital distribution service, and about their new Total Access program, which gave customers the option of returning DVDs through the mail or exchanging them at a store. "[We'll launch digital downloading] this year. While we don't see digital downloading as becoming a big business in the next year or two, our mission is to provide customers with completely convenient access to movies. We launched Total Access on November 1, and in the last two months of the year we added 700,000 subscribers. [Seventy to seventy-five percent of customers are staying on and paying for the service after a two-week trial.] That's a much higher conversion rate than any of our previous programs. The program takes the best of Blockbuster Online, which is a very large selection of movies—65,000 titles—and convenience, and adds the ability to take the movie to your local Blockbuster store and exchange it for any movie in the store that is available free. So it meets the spontaneous need of customers. When a customer exchanges a DVD at the store, it [also] immediately signals our online service to ship another movie from the subscriber's pre-selected list of films. [However, we haven't added the Total Access program to our European and Asian operations, and] we are going to focus on the US, Canada and Mexico. And if the right opportunity came, we would probably divest some of our international businesses and take that money and spend it toward initiatives here at home or buy back shares. I wouldn't use the word restructuring. I would say that we are continuing to dissolve our old business model. And we are adding a third leg to our business this year: digital distribution. So, we have taken Blockbuster from an in-store only rental business to in-store rental, online and mail-delivery rental...

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