Wednesday, July 21, 2004

Mailbox Report: Blockbuster Fights Downloads and Subscriptions with...Subscriptions?

A mosey out to the mailbox just now yielded a flier from Blockbuster announcing unlimited film "rentals" for $24.99 a month (first month at $14.99) - AKA subscription movie content. Fighting both premium and on-demand cable and a surging market for movie downloads, Blockbuster has little choice but to try something new, and all-you-can eat subscriptions may be just the trick. Subscriptions are still a very valuable business model, and it may be just the thing to help other media sectors whose unit sales have been suffering. Part of the trick is to have "point of sale" capabilities within the model to add margins - be it a chocolate bar, a DVD or a $250 dollar report, depending on your content and your needs. This is where contextual advertising offers a wealth of possibilities for premium content that have barely been exploited.
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