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Is Keyes channeling Bill Fields?
November 2, 2007

Am I the only one getting a tad bit of deja vu from Jim Keyes turnaround strategy for Blockbuster?

A "merchant culture" focusing on DVD sales, snacks, music and posters? 80% of the chain's revenue on Shrek the Third will come from sell-through? Sounds awfully reminiscent of that Big Blue CEO of a decade ago, Bill Fields.

And we all know how that ended.

To be fair, home entertainment has changed dramatically in the past decade. Sell-through was just a fledgling business in the Fields era, perhaps the reason the sales focus of that era seemed so, well, unfocused. 

Blockbuster for almost its entire corporate life has been moving strategically toward serving up multiple forms of entertainment, in any way consumers want it. (Remember Blockbuster Pavilion? Been to the Blockbuster theater in Mexico?.) And, DVD purchases are certainly where most consumers spend the bulk of their entertainment dollars.

Seems to me, though, that rental is still key to keep the foot traffic up at Blockbuster stores. You've got to be really, really convenient if you want consumers to pay for a DVD than they have to at Wal-Mart or Target.  

Posted by Marcy Magiera on November 2, 2007 | Comments (0)