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Thursday, August 28, 2008

Lessons From Blockbuster - Total Access Takes Another Minor Misstep

Blockbuster provides a perfect real-world example of a company struggling to get it right. Sometimes they get the DVD in the tray and sometimes they don't. (That analogy sounded better in my head!)
One of the neat features of Blockbuster Total Access is that along with being able to exchange mail envelopes for a free DVD in the store is that they also send you a monthly coupon that can be used for either a DVD or a game. Real quick, let's do the math on all of this. I pay just about $10 per month for the one DVD at a time plan. Let's say that I only watch movies on the weekend so every week I get my DVD in the mail, watch it, exchange it for a freebie in the store and then wash, rinse and repeat the next weekend and so on. That's two movies I watch per per week, eight per month plus a ninth movie (or game) using the free coupon. I'm paying just over $1.10 per movie. Read More>>

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