Checking Blockbuster's (BBI) channel: a proprietary look at the In-Store Movie Pass offer

| About: Blockbuster Inc. (BBI)
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During the week of February 18, 2005, In-The-Channel-Research (ITC), an independent research boutique, surveyed 122 Blockbuster (ticker: BBI) store managers about its In-Store Movie Pass promotion.

Before the recent change in its pricing and terms, BBI’s In-Store Movie Pass allowed customers to rent as many movies as they wanted, while holding two movies at a time.  The service cost $24.99 after an introductory price of $14.99. Yesterday, Blockbuster cut the price to $14.99 with an introductory month at $9.99.

Below are the results of ITC’s survey:

  • 84% of store managers reported an increase in customer traffic versus a year ago
  • 69% of store managers reported an increase in average sales ticket; 28% said that the average sales ticket was flat; and 3% reported a decrease in average sales ticket
  • On average, store managers estimated that 30% of customers had signed up for the service
  • Store managers estimated that 16% of customers subsequently cancelled their subscriptions
  • 48% of managers reported being ahead of their Q1 sales plan; 40% reported being on-track; and 12% said that they were behind their Q1 sales plan

For more information about this survey or other ITC surveys, contact Chris Harrie at chris@inthechannelresearch.com.

[Permission to post this data explicitly granted from In The Channel Research]

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