Blockbuster Launches Totally New Way to Rent Movies: Introducing Blockbuster Total Access(TM) - Video Available
01 November 2006 - 1:00PM
PR Newswire (US)
Blockbuster Exclusive: Online Subscribers Can Exchange DVDs Through
Mail or for Free In-Store Movie Rentals DALLAS, Nov. 1
/PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE:BBINYSE:BBI.B)
today announced that it is giving online renters unprecedented
access to movies through the introduction of BLOCKBUSTER Total
Access(TM), a movie rental program that gives online customers the
option of returning their DVDs through the mail or exchanging them
at more than 5,000 participating BLOCKBUSTER(R) stores for free
in-store movie rentals. The new program, available only from
Blockbuster, means Total Access subscribers don't need to wait to
get DVDs through the mail, essentially allowing them to double the
number of movies they can access each month. To view the Multimedia
News Release, go to: http://prnewswire.com/mnr/blockbuster/25964/
(Photo: http://www.newscom.com/cgi-bin/prnh/20061101/NYW085 )
"Until today, no online rental service offered customers the option
of returning their movies to the store and exchanging them for free
movie rentals, and there is no other store-based retailer that
offers customers the convenience and the selection of the more than
60,000 titles available through our online service," said
Blockbuster Chairman and CEO John Antioco. "Customers shouldn't
have to choose between renting online versus in-store, and they
should never have to be without a movie. Now, thanks to Blockbuster
Total Access, they don't have to." Beginning today, Wednesday, Nov.
1, Blockbuster will automatically upgrade all current and new
online rental subscribers to the Blockbuster Total Access program
at no extra cost, immediately giving them the option of mailing
back their online movies, exchanging them at any participating
Blockbuster store, or a combination of the two. For each online
rental exchanged in the store, customers can receive a free
in-store movie rental. Subscribers to Blockbuster's lower-priced
$5.99 and $7.99 plans will also be included in the Total Access
program and will be able to exchange their online DVDs for free
in-store movie rentals. Another feature Blockbuster Total Access
offers subscribers is a faster shipping cycle. When subscribers
return their online rentals to a participating Blockbuster store,
the store check-in process automatically initiates the shipment of
the next available movie(s) in the subscriber's rental queue,
whether they take advantage of the in-store exchange option or not.
That means Total Access customers generally will get their online
movie(s) a day faster than if they had dropped the return movies in
the mail. In addition to being able to exchange online rentals at
participating Blockbuster stores for free movie rentals,
Blockbuster Total Access customers will also receive a free
in-store rental coupon each month. Subscribers can use the monthly
rental coupon in the same visit with their in-store exchanges for
another free movie, or by itself if they have already returned
their DVDs through the mail or just aren't ready to return their
online rentals yet. More good news is that movies received through
the in-store exchange option or with the rental coupon do not count
against the total number of DVDs an online customer can have out at
any one time per their subscription plan. In-store movies are still
subject to store rental terms, including due dates, and must be
returned to the store from which they were rented. Another added
convenience is that customers can now sign up for Blockbuster's
online rental service right in the stores. With the launch of the
Blockbuster Total Access program, almost all participating
Blockbuster stores will have online wireless access, so store
personnel can sign up new subscribers on the spot. "Our research
has shown that Blockbuster Total Access appeals strongly to online
customers as well as to store-based customers who want to be able
to rent movies both ways," said Antioco. "As a result, we believe
Total Access will help us achieve our goal of two million
subscribers by year-end, position us to grow our subscriber base in
the future and assist us in increasing our share of the overall
rental market." As of the end of September, Blockbuster had
approximately 1.5 million online subscribers, a year-over-year
increase in its subscriber base of 50 percent, which included some
100,000 trial subscribers at quarter-end who subsequently converted
to paying members. During the third quarter, the company added
approximately 150,000 net subscribers. With more than 60,000 titles
to choose from online, Blockbuster delivers DVDs right to
subscribers' mailboxes in return-pre-paid postage envelopes. There
are no due dates or late fees with movies rented from Blockbuster's
online rental service, and subscription plans start as low as $5.99
a month, with the $17.99 three-out unlimited movie plan being the
most popular. A two- week free trial membership to Blockbuster
Total Access is available for a limited time, including to those
customers who have previously tried Blockbuster's online rental
service but are not currently subscribing to the service. Visit
http://www.blockbuster.com/ for details. About Blockbuster
Blockbuster Inc. (BBI, BBI.B) is a leading global provider of
in-home movie and game entertainment with approximately 8,500
stores throughout the Americas, Europe, Asia and Australia. The
company may be accessed worldwide at http://www.blockbuster.com/.
Forward-Looking Statements This press release includes
forward-looking statements, including those related to BLOCKBUSTER
Total Access, our expectations regarding the competitive impact of
the program, including its impact on our market share, online
shipping times under the program and our online subscriber growth
goals. These forward-looking statements involve risks,
uncertainties, assumptions and other factors that are difficult to
predict. Actual results may vary materially from what is expressed
in or indicated by the forward- looking statements. Factors that
may cause actual results to vary materially include, among others,
(i) consumer appeal of BLOCKBUSTER Total Access and the related
impact of competitor pricing and product and service offerings,
(ii) overall industry performance, (iii) our ability to obtain
favorable terms from suppliers, including on such matters as copy
depth and uses of product, (iv) the studios' dependence on revenues
generated from retail home video and their related determinations
with respect to pricing and the timing of distribution of their
product, (v) the variability in consumer appeal of the movie titles
released for rental, (vi) our ability to respond to changing
consumer preferences, including with respect to video on demand,
digital distribution and other new technologies and alternative
methods of content delivery, and to effectively adjust our
offerings if and as necessary, (vii) the extent and timing of our
continued investment of incremental operating expenses and capital
expenditures to continue to develop and implement our initiatives,
including BLOCKBUSTER Total Access, and our corresponding ability
to effectively control and reduce overall operating expenses and
capital expenditures, (viii) our ability to effectively and timely
prioritize and implement our initiatives and to timely implement
and maintain the necessary information technology systems and
infrastructure to support our initiatives, and (ix) other factors
as described in our filings with the Securities and Exchange
Commission, including the factors discussed under the heading "Risk
Factors" in our Form 10-K for the year ended December 31, 2005, and
under the heading "Disclosure Regarding Forward-Looking
Information" in our Form 10-Q for the quarter ended June 30, 2006.
This cautionary statement is provided pursuant to Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The forward-looking statements in this press
release are made only as of the date hereof, and we undertake no
obligation to update publicly any forward-looking statement for any
reason, even if new information becomes available or other events
occur in the future.
http://www.newscom.com/cgi-bin/prnh/20061101/NYW085
http://photoarchive.ap.org/
http://prnewswire.com/mnr/blockbuster/25964DATASOURCE: Blockbuster
Inc. CONTACT: Press: Karen Raskopf, SVP, Corporate Communications,
or Randy Hargrove, Sr. Director, Corporate Communications,
+1-214-854-3190; or Investors: Angelika Torres, Director, Investor
Relations, +1-214-854-4279, all of Blockbuster Inc. Web site:
http://www.blockbuster.com/
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