Blockbuster’s new survival strategy

Blockbuster recently reached agreement with three of the largest Hollywood studios to keep their DVD releases out of RedBox and Netflix for an extended period, in order to protect Blockbuster’s “exclusivity.” This may be a smart short-term tactic for Blockbuster, but I question (via RetailWire) the wisdom on the part of the studios:

My question upon reading this article is why the three studios in question reached this sort of agreement with Blockbuster in the first place. There must have been favorable financial terms, not just the promise of preferred shelf space. After all, better shelf space in a rapidly declining retail concept is of questionable value. Did the movie studios consider the speed with which Blockbuster has closed locations all over the country? Did they consider that the “bricks & mortar” delivery concept is rapidly achieving obsolescence? It makes you wonder what this decision is going to look like five years from now.


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