Blockbuster Looks for New Ways to Boost Revenue Stream

by Kimberly Taylor

A colleague shared a story with me today of Blockbuster’s move to begin selling concert tickets in their stores.

It’s an interesting move for a company undoubtedly struggling to convince consumers that bricks and mortar beats the convenience of subscription-based services like their competitor, Netflix, or the identically priced on-demand services offered by cable providers.

The move comes as concert promoter Live Nation continues to look for ways to build their own ticketing channel while moving away from ticket-selling giant Ticketmaster.

So far, I see the benefit to Blockbuster: more product offerings for consumers who’ve stayed loyal and continue to shop their stores, and a cut of the transaction fee charged to buyers. Live Nation opens up their distribution channel and is able to rely less and less on Ticketmaster.

What I don’t see, however, is the advantage to the consumer without whom neither company would benefit.

The biggest draw to consumers would be a reduction or elimination of the convenience fees on tickets, which are typically in the $9 to $10 per ticket range. Let’s face it, concert tickets aren’t sitting next to the typical gum and candy impulse buys normally found at the checkout counter.

So have Blockbuster and Live Nation taken aim at their target audience with this strategic move or is it simply a self-serving business scheme disguised as convenience?

Perhaps if they were listening to what keeps their client at night, they’d combine their need for a revenue boost with the consumers’ need to save and still come out on top.

2 Responses to Blockbuster Looks for New Ways to Boost Revenue Stream

  1. stangle says:

    Great work on incorporating one of the five steps.

    I think Blockbuster will generally always be around to satisfy people like me. I don’t have cable to buy the on demand, and I don’t have a home computer to rent off the internet. Blockbuster did make a very critical error in missing the internet renting that Netflix capitalized on.

    The concert tickets at the counter to me seems out of the heavens but maybe they will rent out new music singles or have more live shows of music artist or even they will have a new super I tunes type kiosk to download music for a nominal membership fee.

    Who knows what the future of technology will bring, but I have come up with a new movie rental scenario that could revolutionize movie rental business that only me and other person know about…for now.

  2. […] Blockbuster Looks for New Ways to Boost Revenue Stream – December 3, 2008 […]

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