Audio Video News

Blockbuster is taking serious punches and hanging on the ropes. First one of the two stores in my neighborhood closed (always a bad sign). Then came the announcement that earnings had slid from $5.5 billion in 2006 to $1.2 billion in the first three quarters of this year--ouch. Now along comes CEO Jim Keynes with a rescue plan.

This year's new attractions seem modest. They'll include stocking more new releases; adding iPods, portable DVD, and other hardware; selling PS3 with movie bundles in 2000 stores; movies on flash drives; more gift cards; and marketing on Facebook.

But next year is when the Blockbuster-branded downloads will hit, thanks to the recent acquisition of Movielink. Some interesting ideas will be tested, including kiosks within stores that custom-burn DVDs, downloading (not just selling) movies on flash drives, DVD vending machines, and new amenities to include a beverage bar and lounge, kiddie play areas, and a technology center.

The Blockbuster site already offers rentals by mail, addressing its single biggest competitive problem--the Netflix juggernaut.

I hope Blockbuster survives because I like the spontaneity of being able to walk out the door and return with a movie in a few minutes. It's an urban amenity that I'd hate to do without. But for most people, visiting Blockbuster is a question of driving--and rising gas prices are a growing concern.