Blockbuster Finishes 2006 with 2.2 Million Online Subscribers
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Blockbuster is saying it finished 2006 with 2.2 million online rental subscribers. Around 200,000 of those are just trying it out while the remaining 2 million are paying subscribers. The company was able to sign up more than 500,000 paying customers in just the last three months of 2006.
Blockbuster claims the increase is a result of its "Total Access" program, which allows online customers to return DVDs through the mail (the traditional way) or at Blockbuster stores in exchange for in-store movie rentals. The company has been trying desperately to play catch up with arch rival Netflix. In fact, Blockbuster had a holiday promotion that let Netflix
subscribers rent Blockbuster movies for free.
Blockbuster Chairman John Antioco explained that "Total Access" has picked up without much broadcast advertising. Only a couple of test markets were used for advertising but the majority of subscribers seems to be attributed to other factors (blogging, anyone?).
But Blockbuster may still have a ways to go if its goals have anything to do with catching up to Netflix. The red envelope company had forecast its subscribers would be over 6 million by the end of 2006…
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4 Comments 
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January 3rd, 2007 at 11:41 am
This is so interesting. Maybe Blockbuster has finally found a way to make some inroads? I wonder, though–how maintainable is this program? I’m under the impression that the physical stores have been becoming a liability for Blockbuster, and this new program seems to be making the stores cost even more money by requiring them to keep stock wihout getting additional money from rentals.
Also, I’d love to see how Netflix’s subscription levels have fared in the meantime. Are these new BB customers switching, or are they new to online movie rentals? How does Netflix’s new subscriptions rate compare?
Such a fascinating market battle.
January 3rd, 2007 at 1:37 pm
Sustainability is definitely an issue. Often, when gaining market share is the goal, too many key factors can get ignored only to arise after the supposed good news.
And I agree that more data would really be helpful. The online rental market seems to be aways off from maturity. And if that’s the case, Blockbuster may have easier ways of getting new customers than going for die-hard Netflix fans…
January 3rd, 2007 at 7:48 pm
Starting December 19, 2006, Blockbuster Total Access (online) is giving customers 1 free video game rental each month plus the first month is free.
Sign up at http://www.blockbuster.com/bbfamily
First month free with promo code 1557TA
Facts:
1. Offer changes to 2-week trial beginning Jan 15 2007. 3 movies out at a time. So, signup now !
2. Members can exchange online movies for free DVD rentals at their local Blockbuster (online mailer/movie will work like a coupon). Also, as soon as the online movies are exchanged at the store, the next movies in your que will ship as well. You essentially double the # of DVDs you can watch by returning them to the store (you can’t do this with Netflix).
3. Members will also receive 1 in store coupon every month for a free movie OR video game (even during free month).
4. Only pay $17.99 per month (3 out) after the 1st month or downgrade to the $14.99 (2 out) or $9.99 (1 out) plans.
January 17th, 2007 at 11:58 am
I have been a Blockbuster On-Line member for almost 2 years and was very pleased when they announced their “Total Access-Never Be Without A Movie” plan.
At the beginning, they did what they advertized. When you bring in a dvd that you received by mail as an on-line member to their local store you receive an in-store rental dvd for free. The returned dvd is scanned in-which based upon their advertizing-would autmatically earmark for mailing the next available dvd in the member’s on-line queue. In most cases, if you returned a dvd to a local store, Blockbuster would mail the next dvd in your queue that same day but no later than the next day.
Over the last month, it has been taking more than 2-3 days before the next movie is actually mailed by Blockbuster. And to make matters worse,it now takes another 2-3 days before you receive the dvd’s even though I’m in the same postal zip code. Essentially, I’m now receiving less movies per month than before the Total Access Plan.
Over the last 2 weeks, I have sent 2 e-mails to Blockbuster asking them to explain these delays. Usually, I would get a response within 24 hours. However, they have not responded to these 2 e-mails.
It appears that Blockbuster is not living up to it’s claims. Not only are they guilty of false advertizing but their customer service is rapidly deteriorating.
I for one will cancel my membership if this continues much longer.
Sal G. Mingacci (sgmvideo@hotmail.com)