Hacking NetFlix

Blockbuster & Circuit City Continue to Dance

The Wall Street Journal has posted a letter from Carl Icahn to Blockbuster CEO Jim Keyes, confirming that Icahn will buy Circuit City if Blockbuster is unable:

This is to confirm that I, and/or entities affiliated with me, (collectively with me "Purchaser") stand ready to acquire Circuit City if Blockbuster is unable to receive financing to do so or obtain any necessary shareholder approvals after doing satisfactory due diligence. Obviously, this is subject to Purchaser conducting a satisfactory due diligence review of Circuit City which will be done concurrently with Blockbuster and being satisfied as to the results of that review and of course, Purchaser will be required to obtain certain regulatory approvals which I assume that Purchaser will have no problem obtaining.

The WSJ also posted the letter from Keyes to Circuit City Chairman, President and CEO Philip J. Schoonover, requesting due diligence.

Blockbuster issued a press release to announce that Circuit City has agreed to allow Blockbuster to conduct due diligence.

Nintendo Launches Video Channel

Nintendo quietly launched the Nintendo Channel for the Wii, described as a way to "Watch trailers, mini-documentaries, product demonstrations, and gameplay videos."

I tested the Nintendo Channel, and was surprised by the speed and quality of the video. However, the Wii is probably not going to support Netflix's Watch Instantly because the Wii lacks a hard drive, and the display is limited to 480p.

via Engadget.

Top DVD Rental from Netflix & Blockbuster: 'Crash'

NewTeeVee observed that the top rental at Netflix and Blockbuster is the 2005 movie Crash. Netflix & Blockbuster both track the top 100 rentals of all time, instead of weekly or monthly, so only a few movies on the lists are from 2007.

It's interesting to compare the top 100 DVD rentals at Netflix and Blockbuster. Are you surprised by any of the titles?

Apple Now Sells Movie Downloads on DVD Release Date

The New York Times reports that Apple will now offer movie downloads for purchase on the same day as the movie is released on DVD.

Until now, people who wanted to watch movies on cable pay-per-view systems or rental download systems like Apple TV had to wait a few weeks after the same movie was released as a DVD. (And the DVD comes out, of course, four or five months after a film hits the theaters.)

Warner Brothers has been experimenting with the new approach for the last few months. It has found that DVD rentals only fell by 3 percent to 5 percent and sales of DVDs actually increased, perhaps because of the increased promotion and fewer used rental discs available for sale.

Apple issued a press release to announce that the following studios were offering library and same-day release titles: 20th Century Fox, The Walt Disney Studios, Warner Bros., Paramount Pictures, Universal Studios Home Entertainment, Sony Pictures Entertainment, Lionsgate, Image Entertainment and First Look Studios.

Apple also announced that they now have "six million songs, 600 TV shows and over 1,500 films including 200 in stunning high definition videos."

via Gizmodo.

Blockbuster & Lucasfilm to Promote Indiana Jones at Indianapolis 500

Press Release: Blockbuster & Lucasfilm are teaming up to promote the new Indiana Jones film at the Indianapolis 500.

INDIANA JONES(TM) is embarking on a daring new adventure, thanks to an alliance between Andretti Green Racing, Blockbuster Inc. and Lucasfilm Ltd. At a Hollywood BLOCKBUSTER® store this afternoon at 5:30 p.m. IndyCar driver Marco Andretti will unveil the #26 Indiana Jones-themed car he will drive at the Indianapolis 500 on May 25. The car, sponsored by Blockbuster and Lucasfilm Ltd., celebrates Indiana Jones and the Kingdom of the Crystal Skull(TM), opening in theaters worldwide on May 22.

Redbox to Go Public

Video Business is reporting that DVD rental kiosk leader Redbox is going to go public later this year. This could give them the funding to expand even faster (and provide a return on the investment to McDonald's, Coinstar and others). It'll be interesting to take a look at the Redbox financials when they file to go public.

I tend to agree with Netflix CEO Reed Hastings that Redbox, with a focus on the top rentals, provides more of a concern to Blockbuster than Netflix (Blockbuster, obviously worried, is working on kiosks).

Blockbuster Trying to Secure Exclusive Digital Content?

The Wall Street Journal is reporting that Blockbuster is in discussions to invest in a new premium channel.

As part of a deal being discussed, Blockbuster would get digital rights to the new channel's programming in return for an investment in the partnership, these people said.

Viacom, parent of the Paramount Pictures movie studio, said earlier this month it would join forces with Metro-Goldwyn-Mayer Studios Inc. and Lions Gate Entertainment Corp. to launch a new pay-TV channel that will show movies and original television series made by the three companies. The companies now sell their movies to CBS Corp.'s premium channel Showtime, but talks to renew their agreement fell apart when CBS tried to cut the price.

This could be a serious blow to Netflix if Blockbuster is able to secure an exclusive deal for popular movies or TV shows.

Blockbuster To Sell Games & Hardware at Stores

The AP is reporting that Blockbuster will expand the video game selection at retail stores, Blockbuster to offer more video games at its US stores.

The movie rental company said the expansion will allow customers to buy games, hardware and accessories for the Sony PS3, Microsoft Xbox 360, Nintendo Wii and Nintendo DS game systems at its stores.

Blockbuster also plans to offer more video game rental options.

Do you rent games from Blockbuster?

New Blockbuster Prototype Stores Look A Lot Like Circuit City

No wonder they want to buy Circuit City -- the prototype stores look a lot like Best Buy or Circuit City. Dallas News has a photo of Blockbuster CEO Jim Keyes in one of the new prototype stores, and while you can see movies in the background, the center of the store is filled with consumer electronics.

Blockbuster is using a dozen Dallas-area stores to test concepts such as:

•Whether customers want to rent movies as early as 6 a.m. on their way to work, instead of after work.

•Including the option to buy a cappuccino or a fountain drink.

•Offering new technology for watching movies, reading books or shooting video at a Blockbuster.

•Whether customers would stop in more often if they or their children were entertained with a game of Rock Band on a 62-inch screen or they had access to free Wi-Fi.

What do you think? Should Blockbuster transition into an upscale 7-11? Starbucks? Best Buy?

Thanks to George for sending this in. Also seen on Gizmodo.

Blockbuster Q1 2008 Earnings on May 15th, 2008

Blockbuster will announce Q1 2008 results on May 15th, 2008, and host a webcast at 10am ET. It'll be interesting to see how Blockbuster did in Q1, and get an update on the attempt the buy Circuit City. Anyone can listen in on the call online at http://investor.blockbuster.com/.