Geez, I hope you didn’t have stock in Blockbuster! The CEO gave an interview last Thursday where he demonstrated his jaw-dropping cluelessness about where his industry has been headed for the last oh say decade.
Hilarity: he uses this practically unreadable chart to demonstrate how great his physical infrastructure is and why he is “confused by this fascination that everybody has with Netflix.” Dude, even your chart is subtly pointing up and to the right. You want to say the business is going to stay on the left. And how busted are those graphics? And don’t say you’re confused, obviously!
Then he really gets going on kiosks.
…we picked a technology partner so that when we deploy a vending machine, it’s a vending machine that turns into a digital download kiosk.
Right, but for now it’s only a DVD machine. [translation: when?]
Keyes: Correct, but it’s intelligent. It’s wired. It has a server on board [I don't think he knows what a server is] and it has full capability to do digital download and that’s critically important because as this transition occurs from vending to digital download, there are going to be many customers that want both.
Ahhhh! When = “As the transition occurs?” Let me get this straight. Kiosks. All the capital investment of an online strategy, PLUS the physical cost of the huge devices, MINUS all the benefits of having an online strategy because the customer has to GO to the kiosk. AND it doesn’t work yet? BUT it will transform when the time is right? Well… you’re fired!
I want a DVD for my kids to throw in their DVD player in their room, but I want to download a movie to take on the airplane with me on my Archos device or on my PC. [Archos? PC?] We’ll be able to provide that flexibility of use occasion that our customers have. Those who are only in one segment will only be able to satisfy one use occasion. [Is this even English? And dude, syncing!]
Right, but for the kiosk are these kiosks to be in Blockbuster stores or other locations besides the stores? [Translation: why kiosks, again?]
Keyes: What they do for Blockbuster stores is they allow us to have greater title depth in smaller space. [Translation: I'm not answering.] Imagine in the future the ability to have the entire library captured on a kiosk.
ZOMG dude! Do you understand the internet? You’re all like “Imagine every movie is on our huge, physical device.” Imagine every movie on every computer, tv, phone, whatever! I remember a national tv ad campaign that did 10 years ago!
Honestly, I couldn’t read the whole thing it’s so sad. Looks like the stock has been taking a real dive. The top of the article has an editorial note saying the headline was changed. You can tell from the URL that the headline used to be, appropriately, “Dazed and Confused.”
Bonus: Here is a press release of a similar kiosk initiative at Tower Records in 2006.
Special Bonus: Blockbuster’s amazing transparent late fee policy.
Via Daring Fireball and Wired.
Ok so I just signed up for AdSense tonight, and so the first ad ever on this site was for… Blockbuster! Doh. I feel bad for them now!