By SHERYL JEAN
Star-Telegram staff writer
Blockbuster plans to test different movie-rental prices, kiosks in its stores that can download movies to portable devices, and DVD vending machines early next year to retain customers and attract new ones.
Chief Executive Jim Keyes on Thursday gave analysts in New York details of a plan announced last week to change how the company does business in an attempt to return to profitability and better compete against online rival Netflix and vending rival Redbox. Blockbuster posted higher losses and lower sales in the third quarter compared with the same period last year.
Dallas-based Blockbuster took a step in that direction Tuesday, by launching an alternative advertising campaign through the Facebook social-networking site to "appeal to the future digital customer," Keyes said Thursday by telephone. Blockbuster can create Facebook ad pages, and its customers automatically can share their movie choices and reviews with friends, who can order that film from Blockbuster without leaving Facebook, he said. It had trimmed advertising in the third quarter to reassess its strategy.
Some of Blockbuster's other ideas:
Prices: Blockbuster plans to test different movie-rental prices in stores and online, but prices won't increase across the board. The company wants to find a way to encourage customers to return movies in a more timely fashion so stores don't run out of new movie releases, Keyes said. Don't worry, Blockbuster won't bring back late fees, he said.
Kiosks: Blockbuster will place movie vending machines inside some stores, outside some stores and possibly at public transportation centers such as airports and train stations, Keyes said.
Blockbuster's strong brand name will give it an edge over rival Redbox, which already operates movie DVD kiosks at Wal-Mart and McDonald's locations, Keyes said. "Retailers are going to want the premier brand and the best service for their customers," he said.
Smaller stores: Blockbuster plans to build smaller stores -- a couple of thousand square feet compared with up to 6,000 square feet today -- which will be complemented by vending machines, in-store kiosks to download entertainment onto portable devices, and an online digital download option.
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