Blockbuster morphing in the shadow of Netflix

April 23, 2004

IGN has a sketchy, yet tantalizing report about Blockbuster Video. They are feeling the heat of Netflix in that a full 40 percent of their clientele were former Blockbuster customers. In response to that, Blockbuster Video is expanding the "Big DVD Trade-In" program that allows folks to use old DVDs as credit on new ones. Now, you can use them for anything in the store games, rentals, merchandise etc. Unfortunately, there is not much information as to the specific savings to be had.

Most of the stores adding the program will launch the program between August and November of this year, according to CEO John Antioco. The company also plans to expand its Game Rush program, where people can turn in console games for credit toward new games.

Blockbuster is also rolling out in-store and online subscription programs later this year but doesn't plan to have the two integrated until early next year, Antioco said. The in-store program will launch in May. Blockbuster is feeling the heat from Netflix. Antioco admitted that 40 percent of Netflix's customers are current or former Blockbuster customers. Pricing for its subscription rental program has not been announced.