Tuesday, April 27, 2010

Blockbuster Tries to Take Advantage of its 28-Day Release Window Advantage

We should soon see whether Blockbuster's 28-day earlier release window for new release DVDs confers any business advantage over other competitors in the space, especially Netflix and Redbox, as Blockbuster and its studio partners seem to think will be the case.

Blockbuster announced availability of the hit movie, "It's Complicated" from Blockbuster in stores, by mail, or digitally, a full four weeks before it will be available through some competitors.

Blockbuster's early advantage reflects its ongoing agreement with Universal Studios to provide customers with the opportunity to rent hit movies the day they are released. Blockbuster also has early availability of other box office hits like Sherlock Holmes and the highest grossing film of all-time, Avatar, as well as other upcoming new releases such as Tooth Fairy, Valentine's Day, and Invictus.

Blockbuster also has struck deals with mobile handset providers to put the "Blockbuster On Demand" app prominently on the main screens of about 60 models of Samsung Blu-ray Players, HDTVs, and Blu-ray Home Theater Systems, as well as on T-Mobile's HTC HD2.

Blockbuster is the only multichannel provider that has every hot new movie on the day of its release, it's just that simple. What we now shall see is whether that makes a material difference for Blockbuster. Release windows typically have been important in the movie distribution business, so some shift should be seen.

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