The End of BlockBuster?

January 16th, 2008 | jchaager | commentary

On Tuesday morning, Steve Jobs fired the opening round in a salvo that could eventually spell the end of BlockBuster. With the introduction of movie rentals from the iTunes Music Store, Apple is now treading into BlockBuster’s territory. Can BlockBuster survive the onslaught?

Until now, BlockBuster’s biggest competition has been NetFlix. They eliminated Hollywood Video from the game long ago. But now they face a second threat from Apple. BlockBuster was slow to react to NetFlix’s growing popularity. By the time they realized what was going on and countered with their own DVD by mail service, NetFlix was firmly established and had become a dominant force in the movie rental market. With Apple now entering the business, BlockBuster faces a daunting two front assault.

Gone are the days of having to drive to the video store, find something you like that is in stock, and bring it home. No longer do you have to wait for your movies to arrive in the mail. Apple is taking the mediocre video on demand service that cable companies have been providing and putting it on steroids. Now, any movie you want to watch is in stock and available to watch within minutes.

With the introduction of the latest version of their AppleTV software, Apple has done what no other company has been able to do. They have made renting movies fun, easy, and enjoyable. And you can do it from the comfort of your couch. With an AppleTV hooked up to that new HDTV you got for Christmas, you are now just a few clicks away from watching your favorite movie or the latest blockbuster.

How long can BlockBuster survive this assault? NetFlix started it over a year ago when they introduced their Watch Now service to stream movies directly to your computer. Now Apple has extended that idea and put movies right onto your TV. BlockBuster has nothing. And it is unlikely that they can get anything put together in time to remain relevant in the fast changing world of movie rentals.

With the sea change in content delivery, BlockBuster’s days are numbered. They won’t disappear overnight. The new technology is not yet within the reach of the masses. But the day is coming when going to the video store will be like going to the drive-in movie. Nothing but a memory of times past.