heirbrande

What Is Blockbuster Thinking?

Initially, I thought this was an ill-conceived iplan. However, I think this is a pretty good yet sly move after taking a closer look: Blockbuster is launching a setop box later this month that will use the Movielink service which has had some success. Next year, all new TVs are required to go digital. With Circuit City delivering the TVs and setop boxes (and converter kits for old TVs) and being an established electronics retailer, I'm predicting that Circuit City will see a lot of people buying new TVs and a trial subscription (or free subscription) to whatever service Blockbuster is launching. Blockbuster already has many links in the movie industry so it seems like a great match. Also, Icahn is known to love money and when he smells it he will not stop. People would get hurt along the way, but his goal (and shareholders' goal as a by-product) of making money will be met. Remember Icahn's association with Time-Warner. :) Also Apple is trying to move into delivering movies with Apple TV. Jobs knows how to make money so, this will be an incredibile deal for Blockbuster if the management is right. The stock is relatively low now and is priced so that a lot of people can get on board at this price.