Blockbuster + Gamestop ?
Netflix has always had an eye toward the day when they'd be able to deliver their products digitally. That was a key piece of their strategy that was incredibly forward thinking (considering they started doing business by mailing DVD's around) and just plain smart. Blockbuster, on the other hand, was completely reactionary when they started their own DVD-by-mail service to compete with Netflix a few years ago. They saw the obvious threat from Netflix, and realized that their existing business and relationships could potentially give them an edge. Brick and mortar stores could act as depots for customers to swap movies faster, and an exclusive deal with studios, like the Weinstein Company, could secure an advantage.
But I think that Netflix steamroller is just relentless, and as they continue to execute on their digital distribution strategy, Blockbuster is just going to continue spiraling downward. What will Blockbuster look like in 10 years?
But I'd probably say the same thing about Gamestop, being the type of consumer that has recently trashed every piece of physical media he owns... And I'd be wrong, because Gamestop is still a powerful force in the industry, like it or not. They've adapted their business with a mix of smart retail business management and their infamous used game and movie sales. Gamestop's still got quite a bit of life left in them, but I wonder if the future may be more disruptive for them than can be seen right now. So, might their their obvious cross-over with much of Blockbuster's ailing business make for a match for some type of mutually life-saving partnership/ acquisition/ merger?
Gamestop mini-stores inside of Blockbuster locations? Gamestop game rentals by mail via Blockbuster's distribution infrastructure? If nothing else, it gives both of them access to each other's inventory.
I'd think this would have to happen soon, before Blockbuster is just a husk of a company. That steamroller is only picking up speed.
Labels: Gaming



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