SmartGuyStocks.com

Blockbuster's New Paradigm and Its Impact On Competitors

I was an investment banker. When you go to an analyst day and hear words like "hope," "potential," and "brand recognition," over and over again, you know the company has no tangible plans. Please reread the analyst day script. Many times Keyes notes that BBI is exploring potential ideas, but he did not come out with any hard numbers for a tangible plan.

I have been a Blockbuster member for years. They have always had retail. This is not new. Keyes is spinning it as new. More floor space for retail is not going to get the average person to start spending more money at BBI because they already have all the best complimentary products in the store SURROUNDING THE LINE AREA AND REGISTERS. That's the best you can do in retail next to forcing people to buy. Blockbuster runs a dying business model in an increasingly digital world. Kiosks are not the answer, digital downloads are. And until they get on that horse, this stock deserves to get treated like the long shot spec play it is.

P.S.: The return of late fees will simply send more people to NFLX. When I reread your article you are skeptical about all the ideas, but you think Keyes is great. I am very confused ...

Blockbuster: Poor Earnings, Poor Shareholders.

They actually lost more than 500,000 subscribers. They lost 500,000 NET, and they did not break out GROSS. I bet it was sad.

Blockbuster Tricks And Treats Its Customers Like Busters

If you read above, I own the BBI puts because I am putting my money where my mouth is. There is no conspiracy. Blockbuster's revenues have been decreasing steadily and management has shifted their strategy three times in less than 18 months. Read the 10Qs.

As for subscribers, BBI's NET loss was 500,000. That means they lost much more than that. The exact number is the amount of new subscribers added. That will give you the GROSS loss.

You are correct. NFLX did not absorb all the BBI defects. However, NFLX added subscribers and continues to grow.

I think the overall market is capped by the illegal downloads available, but I think that this issue is resolved over time. And I think it will be more favorable to NFLX because BBI just announced they are no longer focusing on online subscribers.

Seriously, the management at BBI is awful. Their "new" strategy is to focus on candy and other retail add ons. Excuse me, but I have been able to buy add ons at Blockbuster outlets for years.

Yes, I am a Blockbuster customer and speak from experience. Only people who have never been to one would buy management's new strategy (which is truly NOT new).

Blockbuster is the new Tower Records.