Blockbuster Reports Q1 Loss
Posted by Steve Fravel on Friday, May 14, 2010 · 
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Blockbuster, working hard to increase revenues from its multichannel distribution service, came up short in the first quarter of 2010. The DVD rental service reported a loss of $65.4 million compared to a profit of $27.7 million for the same period the previous year.
Citing encouraging discussions with financial and strategic partners as well as a 28-day advantage on competitors Redbox and Netflix, Blockbuster CEO Jim Keyes said that the company has “achieved a number of goals to establish a significant competitive advantage going forward.”
Blockbuster’s agreements with Warner Home Video, 20th Century Fox Home Entertainment and Universal Studios Home Entertainment equip the company with a competitive advantage in regard to the release of movies that Netflix and Redbox are prevented, by contract, from releasing in the same time window, allowing for a 28-day advantage.
Keyes noted that, “Through our alliance with NCR we now have over 4,000 kiosks deployed with the BLOCKBUSTER Express(R) brand. In addition, we expanded our digital presence by becoming the premiere movie download experience embedded in T-Mobile’s HTC HD2 smartphone in the US, and further optimized our domestic company-owned store portfolio.”
Keyes indicated that Blockbuster would continue to work with the other studios to achieve a 28-day “cross-channel window.” He also stated that discussions would continue with additional strategic partners to “strengthen our virtual exclusivity.”
Blockbuster indicates in a press release that it expects the next 12- to 18-months to remain challenging as it remains focused on aggressive competition and increased efficiencies. It was noted that the recent closing and eminent liquidation of Movie Gallery would allow for favorable affects on Blockbuster stores.
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