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"Wold said that unlike Blockbuster customers that tend to frequent other Blockbuster locations when a local store closes, he doubts Gallery customers will flock to Blockbuster due to its declining store base."
Source: http://www.homemediamagazine.com/movie-gallery/analyst-750m-dvd-rental-biz-up-grab-with-gallery-closure-19263
I wish I did sell at .60 brother Flip'
My market sentiment is dynamic in nature and may change at any time, glty.
"The liquidation will occur over the next several months, the paper said, citing sources close to the matter."
Unfortunately this will not have an effect on BBI Q1 earnings release scheduled for May 13th. Q2 numbers might show improvement, but after the dilution / debt-equity swap, let alone the great possibility of a bankruptcy, little will matter, imo.
TELL TALE (hitting DVD and Blu-ray May 25 from Genius Products / Vivendi Entertainment) is a movie that serves as a metaphor for itself on a couple of levels. It’s about a physical heart that’s transplanted from one body to another; the script transplants Edgar Allan Poe’s 19th-century classic story “The Tell-Tale Heart” into a 21st-century chiller; and the direction by Michael Cuesta, in concert with the performances, transplants an unusual amount of figurative heart into what could have played as B-movie material.
After opening with a juicy operation sequence, the movie settles in with Terry Bernard (Josh Lucas), the recipient of the new ticker who has another medical situation occupying his attention: His young daughter Angela (Beatrice Miller) has a genetic disorder that requires frequent visits to the family doctor, Elizabeth Clemson (Lena Headey). Terry and Elizabeth’s professional interactions are starting to develop into a personal relationship, to Angela’s approval, and there’s a warmth and charm to the trio’s early scenes together that quickly gets the audience on their side. The byplay between Terry and Angela is free of the precocious wisecrackery that often passes for father-daughter dialogue, and the burgeoning attraction between him and Elizabeth feels honest and lived-in.
Too bad it’s not just the beautiful doctor who soon has Terry’s heart beating faster. During a visit to the hospital, he starts getting that ominous thump-thump in his head when he crosses paths with a certain worker—one whom he discovers was involved in his transplant. This leads to a confrontation that doesn’t end well, and it soon becomes clear that Dave Callaham’s screenplay is pulling an inversion of the Poe “Tale.” Instead of serving as a signifier of the protagonist’s guilt, the noisy organ signals the guilt of others—compelling its recipient to act on its impulses.
The notion of a transplanted organ grafting the consciousness of its original owner into the new body housing it is a time-honored one in horror fare, and in many ways, TELL TALE follows the expected playbook. Terry struggles with the violent impulses inside him as the heart seems to develop a mind of its own; his interactions with his loved ones become strained; a detective (the welcome Brian Cox) investigates; a conspiracy is uncovered. Throughout, however, Cuesta keeps his focus on the personal drama and treats the material with as straight a face as possible. There are moments when one can feel the tension between the story’s more genre-melodramatic moments and the director’s emphasis on real-world concerns, but he succeeds in making his characters relatable and their situations compelling. Lucas very convincingly inhabits his haunted role, while Headey and Miller offer appealing support and Cox brings sardonic edge to his investigator, who comes to be a bit more approving of Terry’s actions than one might expect.
This is not to say, however, that Cuesta doesn’t deliver the goods for horror audiences. His recent credits include several episodes of DEXTER, after all, and part of the verisimilitude he brings to TELL TALE involves not looking away when the going gets nasty. There are a few grisly highlights here that are all the more startling for being set amidst such a down-to-earth milieu, and Elvis Jones’ anatomically correct makeup FX help create some pretty squirmy moments. All of the craft contributions, in fact, are first-rate, which is no surprise given that Ridley and Tony Scott were behind the project as producers. Particularly noteworthy are the cinematography by WENDIGO’s Terry Stacey, which amps up the atmosphere without overdoing either the gloss or the grit, and Patti Podesta’s production design, which makes the interiors and exteriors of Providence, RI (Poe’s old stamping grounds) variously homey and menacing.
Unlike fellow literary-horror favorite H.P. Lovecraft, Poe has had most of his notable film adaptations done as period pieces, but TELL TALE demonstrates that his themes can successfully be adapted to fit the modern day as well. Even as the film’s particulars are thoroughly contemporary, the author’s descent-into-madness motifs remain present (and a key line from “Tell-Tale Heart” is even spoken verbatim by one of the onscreen characters). While its match between heartfelt drama and blood-pumping terror may occasionally be irregular, TELL TALE pulls it off more often than not, and may get your heart pounding and blood freezing at a number of intervals.
Source: http://www.fangoria.com/index.php?option=com_content&view=article&id=715:tell-tale-film-review
"Blockbuster cannot leverage thier name to be relevant in those fields because they are invarieblytied to B+M video stores. They refused to change with the times and now face incredible challenges to stay afloat."
I agree. Unlike some that proclaim on various message boards their Blockbuster store is always packed: Every time I drive by my local blockbuster, there is maybe one customer on a good day. I do not see people "flocking" to Blockbuster to rent Avatar. Digital downloads / streaming is the future. Netflix is the king of digital downloads in the eyes of the consumer (not to mention Torrent).
Think the 28 day window will be the saving grace? The reason why the studios are advocating the 28 day window, is so they can sell more packaged media (DVD's / Bluray's). I believe it is not an attempt to save Blockbuster. With Blockbuster gone, the only competition to packaged media for the first 28 days is Torrents, which is not going away.
The US (and the rest of the world) is in a race to provide ever faster and improved internet bandwidth and access, which points to an end to packaged media. The Pirate Bay, a major torrent site, is located in a cold war era nuclear bunker. http://torrentfreak.com/the-pirate-bay-relocates-to-a-nuclear-bunker-091006/
The movie studios are aware of Blockbusters troubles and eventual demise. To seal Blockbusters fate, the movie studios received a first lien to Canadian Blockbuster properties.
Think Blockbusters brand name / goodwill is enough to save the company from bankruptcy? Remember Circuit City?
EOM.
Mix Master Mike hints on completion of Scratch: The Ultimate DJ on his twitter account!
http://twitter.com/M1XMASTERM1KE
Mix Master Mike also uploaded a picture of the Bedlam Games / Commotion Interactive development team of Scratch: The Ultimate DJ.
http://yfrog.com/5sai1j
STRONG BUY!
Did Redbox Kill the Video Store?
For those of you who remember the days of the VCR, a Beta or VHS tape and a date, this walk down Memory Lane will also take you into the local video store. You remember, the old brick and mortar stores that sprung up everywhere for about a 30-year period in the United States?
Those who got in early... and got out within the first 20 years of the video rental business were the smart ones. (Does anyone remember paying $100.00 or more to belong to a video club?) Movie Gallery (formerly known as Video Update) was the last of these stores that died a slow and painful death in our town. Sure, expenses like rent at the shopping plaza, and employees took their toll, but the real culprit in the death of this local store was one little Redbox (operated by Coinstar (CSTR)) located 150 feet away. The brick and mortar store just couldn't compete with a machine. Of course, in the world of business, natural selection takes over unless you are part of a government subsidized business lobby.
In terms of movie rentals, Redbox has a simple model. Place machines in high traffic areas and let the machine do the work of the video store. Let's face it, for those who remember the video store experience, this is not much different. For only $1.00 you can stay home and enjoy a video.
Netflix (NFLX), however, has stormed onto the scene. Its first business approach was simple: Utilize monthly membership fees and mail service to deliver DVDs right to customers. Netflix even offered free trials. The more recent move into streaming video and the recession that has people looking for cheaper entertainment options, has positioned Netflix to become the Amazon.com of e-business. Investors have been handsomely rewarded.
The question is whether Blockbuster (BBI) can change fast enough to challenge Netflix. Blockbuster has abandoned many of its video stores and has even attempted to rival Netflix with its own online video experience. The question is only if it is too little, too late.
Growth areas? The current market suggests that games are another place to attract consumers. Gamestop (GME) appears to have successfully transformed itself from a shopping plaza storefront to a viable online business model. Gamefly's (GFLY) IPO could, however, pose a problem for Gamestop. Could it be a case of Movie Gallery all over again? With free trial members and an endless mass of gamers, we can only see new opportunities.
Implications
The meteroic rise of Netflix and the potential of GFLY should not be under-estimated. Let us remember that it is not always the company that has the best name that succeeds, but the company that builds a name with a new and more savvy consumer.
Source: http://seekingalpha.com/article/202090-did-redbox-kill-the-video-store
STRONG SELL
Not good. BBI is headed lower as we approach earnings and the reverse split, imo.
Redbox Takes Home Video Market Share From Fading Blockbuster
Blockbuster’s (BBI) loss is Redbox’s gain.
Coinstar’s (CSTR) Redbox automated DVD rental business nabbed 23% of the U.S. home video rental market in the first quarter, up from 15.7% a year earlier.
“Virtually all of this market share came directly from the brick-and-mortar retailers,” Coinstar CEO Paul Davis said in a conference call Thursday. “We estimate that we have between three and four Redbox kiosks within five minutes of an existing or recently closed Blockbuster location.”
Blockbuster is closing hundreds of stores to stay afloat as it deals with declining sales and a heavy debt burden.
Strong Redbox sales helped Coinstar blow past Wall Street’s forecasts for the company’s first quarter. It reported Q1 earnings per share of 21 cents, up 200% from a year ago and 9 cents higher than the consensus of analysts polled by Thomson Reuters.
Coinstar, which also operates retail coin-counting machines, posted sales of $350 million, up 47% from a year ago and 7% higher than analysts had expected.
Coinstar also raised its guidance for the full year. It bumped up its sales target by 4% to a range of $1.53 billion to $1.63 billion. It hiked its EPS forecast by 19% at the midpoint of guidance to $1.82 to $1.94.
Coinstar shares jumped more than 20% in after-hours trading Thursday following the earnings news release. During the regular session, Coinstar closed up 3% to 38.21.
Coinstar’s Redbox business accounted for 75% of the Bellevue, Wash.-based company’s sales in the first quarter. Coinstar added 2,400 Redbox kiosks last quarter, bringing its total to 24,800 nationwide.
In another stab at Blockbuster, Coinstar Thursday announced a deal with Schnuck Markets to install Redbox machines in the more than 100 Schnucks locations across Missouri, Illinois, Indiana, Wisconsin, Iowa, Tennessee and Mississippi. It will replace Blockbuster-branded DVD vending machines in those stores. The Redbox rollout at Schnuck stores is expected to be complete by June.
“Coinstar’s vision is to become the leader in automated retail,” Davis said. “And based on our first-quarter performance, we’re making terrific progress.”
Source: http://blogs.investors.com/click/index.php/home/60-tech/1519-redbox-takes-home-video-market-share-from-fading-blockbuster
Bankruptcy On-Demand
Blockbuster keeps reinventing itself, but it’s too late.
Blockbuster (BBI) is on its last legs. After moving billions upon billions of dollars through its registers, shepherding the transition from VHS to DVD and DVD to Blu-Ray and watching Netflix (NFLX) and Redbox invent new ways to rent movies, it stands on the brink. Last month, it warned the SEC that it could declare bankruptcy anytime (a threat that has since ebbed slightly), it plans to close more than 500 stores this year, and it’s in danger of getting delisted from the New York Stock Exchange. After 25 years, it appears people just don’t want to go see a Blockbuster anymore.
But when I told Kevin Lewis that I was worried about whether Blockbuster could survive, his face contorted. Lewis is Blockbuster’s senior vice-president of digital entertainment, and he is a man who believes in his employer. A few weeks ago, I met with him and two other guys in charge of Blockbuster’s digital strategy at the company’s loft office space in downtown Manhattan. It’s meant to be the headquarters for the digital team—the group of staffers who carry the weight of Blockbuster’s future. On the day I visited, none of the staffers were in the office. I suppressed the urge to see a metaphor where there wasn’t one. (They were all traveling.)
Blockbuster, I was told over and over again, is poised for a comeback. Its brand is more established than any other. It’s the only company that can offer movies in stores, in kiosks, online, and by mail. Most importantly, just because more and more Americans watch movies online—whether it be through Web-connected computers, Blu-Ray players, or DVRs—doesn’t mean they want to stop watching the newest movies. Netflix and Redbox can’t provide those when they first come out. Blockbuster is proud that it can—so proud that this is the first thing you see on its homepage:
The company’s final, last-gasp strategy to regain its swagger and prepare for the future is to harp on this fact over and over again. Lewis would not stop mentioning the “multichannel consumer”—the ideal people who “are in stores, they're renting digitally, they're going to kiosks, they're buying VOD, they're going to theaters. They’re entertainment omnivores…We’re the only company that spans all…of those (channels).” And these omnivores want their movies as soon as they can. According to Lewis, 70 percent of new rentals happen in their first 30 days of release.
When you combine all this, the motto is essentially that Blockbuster is the only place that can get you what you want, when you want it, how you want it. Taken as a whole, that’s true. But when you break down the motto to its three parts—what you want, when you want, how you want—things get far more muddled, and for Blockbuster, far more dire.
In Blockbuster’s view, it can survive because of the chart below. It shows last year’s top-10 grossing movies that are available digitally. Lewis bragged that all of them are on Blockbuster; none are on Netflix. It’s an especially important detail, as more than half of Netflix subscribers are now streaming movies. At my request, Blockbuster’s PR rep sent the chart over:
Netflix can’t stream those movies online because the studios won’t let them. Compared with Blockbuster’s well-stocked shelves, Netflix’s digital library is like a food pantry that contains only peanut butter and jelly. Netflix has made deals with several studios that give them a larger digital catalog, but it also forces them to wait 28 days to start sending them to customers the old-fashioned way: on disc. Similarly, Redbox, the king of kiosks, is being forced to delay the release of movies as a peace offering to the studios.
On this issue, Blockbuster is right; it’s far better digitally than Netflix. Blockbuster can offer digital downloads because it asks customers to pay for digital movies the same way they rent DVDs—a la carte. (The studios prefer this to Netflix’s come-one, come-all digital strategy.) Renting a movie on Blockbuster runs $4.
Of course, they’re not the only company that can do that. Steve Jobs long ago realized Blockbuster was on the ropes and decided to provide an alternative. So let’s amend that chart.
Nearly all are on iTunes. But that’s not the whole picture, either. If digital downloads are to be a success, they’re going to be watched on an actual TV, not on the computer screen. Netflix knows this, which is why it’s putting its Watch Instantly service on every Blu-Ray, TiVo, and game console known to man. Blockbuster is trying to do the same. By the end of the year it claims it’ll be on nearly every brand of Web-enabled TV and Blu-Ray device sold. Of course, once these services migrate off the computer and on to the TV, they’re contending with a new force: on-demand. Cable providers have steadily added to their pay-per-view offerings. I’m trotting the chart back out, this time with a new Comcast On-Demand column added.
So Blockbuster and Comcast On-Demand are identical for at least this small sample. Blockbuster’s strategy is to double-down on these new releases because Netflix and RedBox don’t have them. But if cable providers do, that invalidates Blockbuster’s claim on the space. It’s correct that Netflix and Redbox have been Blockbuster’s greatest enemies over the last few years. But moving forward, it’s a different kind of netbox that will eventually beat Blockbuster’s: the cable box.
The last piece of Blockbuster’s motto left standing is its assertion that it’s the premiere place you can get these films when you want them. On-Demand will soon make that moot, as well. The film industry has finally wised up and realized it doesn’t need middlemen like Blockbuster anymore. It can use the cable operators instead. Last month, the New York Times reported that studios were collectively marketing on-demand cable as the best way to get their content. They’re tossing $30 million at it, mainly because they get 65 cents from every dollar spent on on-demand, compared with roughly 25 cents at Blockbuster. As of now, not all movies get released via on-demand at the same time they’re released on Blockbuster. But Comcast told me it has more movies on-demand this year than ever before, and it’s getting them sooner than it had in the past. Several of the on-demand movies from the previous chart were on-demand the same day they were available for rental at Blockbuster. Given the 65-cents versus 25-cents economics, one would figure that trend will only hold.
To be fair, Blockbuster’s big strategy isn’t just that it offers the movies you want, where you want them, when you want them. It’s that they’re the only place that can deliver all three at the same time. True enough. Blockbuster is readying a massive database of where all of its movies are available. This way if you want to rent, say, GoodFellas, and it’s not available online, the database will tell you it’s down the street at a retail location or available through Blockbuster’s Netflix-like DVD-by-mail service. It’s the integrated service for the Blockbuster diehard.
But in an age of iPads, Boxees, and Netflixes, how many Blockbuster diehards can there be? This is the age of gadget diversity. We don’t need or want one megalith to handle all our video needs. (Only Apple [AAPL] has managed to create the kind of cultish walled-garden that Blockbuster daydreams about.) And even for the less tech-inclined—if a video is available on their cable box, why go outside and get it from a retail store? Or even from the Blu-Ray player that has Blockbuster DVDs. When I was at Blockbuster’s digital office, their crew told me how pleased they were to be the first thing people see when they boot up a Samsung Blu-Ray player. But compared with cable on-demand, that Blu-Ray player is still a secondary option. That means Blockbuster is, too.
That leaves Blockbuster’s brick-and-mortar retail business as its one unique characteristic. Of course, brick-and-mortar is what got Blockbuster into this mess in the first place. The same social trends that forced Blockbuster to shutter those stores don’t look like they’re ebbing any time soon. Back-catalog movies are still available through RedBox and Netflix for far less than Blockbuster sells them for in stores. Broadband is becoming more and more prevalent in the country every day, allowing more people to download videos and skip the drive to the strip mall. Blockbuster isn’t just running out of time and money. It’s running out of customers. Unfortunately, those aren’t available on demand.
Source: http://www.thebigmoney.com/blogs/hulucination/2010/04/28/bankruptcy-demand?page=full
Next support is @ .35 and .30 I do not like the recent price action, eom.
Blockbuster battles Redbox
Vidstore banks on bigger kiosks
Blockbuster is tired of seeing red: The company is gearing up to battle Redbox for a major piece of the video rental kiosk business by installing thousands of its own boxes nationwide this summer.
Through a licensing deal with ATM-machine maker NCR Corp, Blockbuster will roll out 7,000 kiosks branded Blockbuster Express inside supermarkets and outside convenience stores by the end of June, and 10,000 by the end of the year.
It's a considerable uptick from the 40 kiosks Blockbuster had installed in stores last year, mainly on the East coast, according to Alex Camara, VP and general manager, NCR Entertainment. He is a former exec at Redbox-owner Coinstar.
Blockbuster has aggressively made moves lately to fight back against red-branded rivals like Redbox and Netflix, which have stolen away a significant number of video renters over the years with $1-a-day kiosks and DVD-by-mail services.
NCR, based in Duluth, Geor gia, is running Blockbuster's kiosk biz, managing the boxes, which includes stocking them with DVDs. It splits revenue earned from the kiosks with Blockbuster. In effect, NCR is paying Blockbuster to use its name to market the service.
Like Redbox, Blockbuster's kiosks offer DVD rentals for $1 a day. But the boxes have also been designed to also sell DVDs starting in July, giving it another revenue stream, and eventually expand to offer videogames, music and book sales.
Given the growth in the kiosk biz, NCR could increase rental fees to $2 for new releases, with older fare still available for $1 a day.
The kiosks are also larger than Redbox's and are able to hold 950 DVDs; each box usually offers 300 titles to rent. Redbox offers 500 discs.
In addition, customers can rent three movies at once and log onto BlockbusterExpress.com to browse available titles at local kiosks and reserve movies for pick up at a specific machine. If a title is unavailable at one machine, a nearby kiosk which has the movie is identified.
Site was launched in part to reduce wait times at kiosks as customers search for movies. So far, the company's found that 20% of its customers browse online and half of those reserve their DVDs for pick up.
Blockbuster had to do something. Once the dominant player in the video rental biz, Blockbuster found itself in a vulnerable position, up against newcomers that took advantage of technology to deliver videos to consumers who didn't have the time to visit the traditional video store.
Kiosks will account for 30% of the DVD rental market this year, according to research group NPD.
"When you're onto something good and customers are reacting to it you want to provide it for them," said Mike Britton, general manger of Blockbuster Express.
Blockbuster's initial moves into these segments of the business were far less aggressive than its rivals.
Redbox currently operates 20,000 kiosks (which generated $774 million for Coinstar last year), while Netflix has grown to 14 million subscribers, who pay at least $9 a month to use the service.
The expansion of Blockbuster Express is part of the company's embrace of a variety of platforms outside of relying solely on traffic to its stores, including pushing its DVD by mail service and Blockbuster On Demand, a video-on-demand service through cable providers. It's introducing a games by mail rental service soon.
"Different customers want to get entertainment in different ways," Britton said. "We want to be the preferred choice for everybody and realized we need to be in locations that are generally more convenient."
The kiosks also will enable Blockbuster to continue operating in areas where it's been forced to shutter stores. Blockbuster will close 1,000 stores this year to deal with a billion-dollar debt load and declining rental business.
NCR has quietly been growing its own entertainment business.
The company is best known for building ATM machines for banks and the boarding pass printing and check-in machines airlines use at airports. It started adapting its tellers to handle entertainment two years ago, spending $60 million to develop its Blockbuster Express kiosks last year and another $80 million this year.
It acquired California-based kiosk operator DVDPlay last year, which also has machines in Colorado and Illinois, and started locking down deals with retail chains like Safeway supermarkets and discounter Dollar Tree. It started converting the 3,800 kiosks it operated to Blockbuster machines last year.
NCR last week said it will soon start introducing digital download kiosks in 57 InMotion Entertainment stores operating at 35 airports across the U.S., including Atlanta, Chicago and Seattle in May. The kiosks will offer travelers movies, TV shows and music tracks to rent or purchase and download to memory cards and sticks.
For movie rentals, consumers will have 30 days from purchase to activate the movie and 48 hours to watch once they begin.
The digital technology will eventually be integrated into Blockbuster Express machines.
The Blockbuster Express kiosks were designed to eventually offer digital downloads, something Redbox is also considering offering soon. With digital, new content can be delivered to a kiosk by the corporate office at the press of a button.
The modern airport traveler has limited and often inflexible options for entertainment on the go," Camara said. "DVDs and CDs cannot be played on many portable devices. Movies and music can be downloaded to portable devices at home, but once travelers leave home, purchase options have been limited. Streaming content often cannot be accessed in the air, and never without expensive fees. We are bringing faster and easier entertainment choices to consumers while they are on the go."
Blockbuster thinks it has the potential to dominate a sector of the video rental biz it's been late to and is pitting much of its success on its brand.
The large blue kiosks with Blockbuster's logo emblazoned clearly stand out to passers by, and the company sees them as billboards.
"Everybody recognizes what Blockbuster means," Britton said. "You know immediately what it is."
Source: http://www.variety.com/article/VR1118018342.html?categoryId=13&cs=1
STRONG BUY
Spokeswoman Michelle Metzger (of Blockbuster) says the Dallas operator of video rental stores is in the midst of "transforming to a multi-channel company," and is still in hiring mode.
*******************************
NCR also spoke of the multi-channel transformation in the Q1 2010 conference call:
"We have been and continue to work through our partner BLOCKBUSTER is, is that this naturally augments them through their [mall] and also their store footprint with our kiosk footprint and so we continue to work within a multi-channel automated retail window versus rental, so we look at these machines a little bit differently and we are in the different segment of the market in a way we developed it and that's why we have been negotiating differently and working differently in order to enable that. We will be this summer selling finished products through our machines, which is fantastic for all parties involved."
"Our partnership with BLOCKBUSTER and the multi-channel nature of that entity, if you looked at it end-to-end, with BLOCKBUSTER having a day and date privileges, we think that all of that added up is a very powerful argument to bring forward a very powerful channel for the studios to partner with."
Source: http://seekingalpha.com/article/200324-ncr-corp-q1-2010-earnings-call-transcript?page=-1&find=blockbuster
I believe NCR (and Blockbuster) will morph into a single, stronger entity. The Blockbuster exclusive 28 day window for new releases is a game changer for the video rental industry, and will enable Blockbuster to turn the tides against Netflix (and Redbox), and gain valuable market share, imo.
STRONG BUY
A merger between Blockbuster and NCR is a prime example of Vertical Integration / Vertical Expansion.
STRONG BUY!
"Vertical expansion, in economics, is the growth of a business enterprise through the acquisition of companies that produce the intermediate goods needed by the business or help market and distribute its final goods. Such expansion is desired because it secures the supplies needed by the firm to produce its product and the market needed to sell the product. The result is a more efficient business with lower costs and more profits.
Related is lateral expansion, which is the growth of a business enterprise through the acquisition of similar firms, in the hope of achieving economies of scale.
Vertical expansion is also known as a vertical acquisition.
Vertical expansion or acquisitions can also be used to increase scales and to gain market power. The acquisition of DirectTV by News Corporation is an example of forward vertical expansion or acquisition. DirectTV is a satellite TV company through which News Corporation can distribute more of its media content: news, movies, and television shows. The pending acquisition of NBC by Comcast Cable (as of January 16, 2010) is an example of backward vertical integration."
http://en.wikipedia.org/wiki/Vertical_integration
NCR Q1 2010 Conference Call Transcript:
http://seekingalpha.com/article/200324-ncr-corp-q1-2010-earnings-call-transcript?page=-1&find=blockbuster
The NCR Conference call was great news!
Blockbuster Express was highlighted. NCR is focusing on expanding and continually evolving its entertainment business and sees it as a high growth segment.
According to the PDF presentation (page 5), NCR sees $1B+ revenue opportunity in Blockbuster Express kiosks. Also highlighted in the PDF (page 5), NCR is on track to have 10K Blockbuster Express kiosks by year end, and in 2011 is going to add more Blockbuster Express kiosks both Domestically AND Internationally!
On Page 6, NCR stated they are focusing on "Strategic Acquisitions". I believe Blockbuster is one such example (merger) and would be a win-win situation for both companies. On page 15, NCR expects Blockbuster Express kiosks to be the #1 or #2 market leader (US and International). It seems Blockbuster and NCR are set to take over the Kiosk and digital entertainment industries in the near future!
In the questions and answer segment in the conference call, it was highlighted on how Hollywood / movie studios are supporting Blockbuster. Blockbuster is the only avenue for consumers to rent new releases due to the established 28 day window. For NCR, Blockbuster is the key for access to new releases. This is why I see the strategic alliance / partnership evolving and expanding into a merger between Blockbuster and NCR. Blockbuster has over 5000 kiosks in place. NCR is working diligently to expand features and access to consumers on Blockbusterexpress.com and kiosks.
NCR sees the advantage of the blockbuster express kiosk over competitors is the partnership with Blockbuster with its unprecedented access to new releases. A majority of movie rental revenues is accounted for in the first month of release.
I expect BBI to start heating up, imo. GLTA!
NCR Q1 2010 Conference Call & Results and Strategy Presentation (PDF):
http://investor.ncr.com/phoenix.zhtml?c=83840&p=irol-presentations
STRONG BUY!
Blockbuster is in the process of reinventing itself as THE place to go for the latest releases!
STRONG BUY!!!
************************************************
Will Avatar Increase Blockbuster Subscriptions?
With $2.7 billion earned worldwide, Avatar became the highest grossing movie ever to hit the big screen. Today, that number will certainly be added to, as Avatar was released on DVD and Blu Ray. Anyone that wants to rent Avatar on DVD will have to visit their local Blockbuster brick and mortar store, add it to their Blockbuster queue, or watch it on Blockbuster On Demand. Are you noticing a similarity in all of your options?
You see, Avatar was produced and released by 20th Century Fox Studios. Fox, along with Sony and Warner Brothers, entered into an agreement with Blockbuster stating that their new DVD releases would be available the same day, only to Blockbuster. Netflix and Redbox would have to wait four full weeks before allowing their customers to rent movies from these three studios, making Blockbuster the only legitimate source for new releases from three major movie studios. Some would say that 28 Days Later has become a real-life horror movie for Netflix and Redbox. So the question here is how many people, Netflix subscribers or not, will sign up with Blockbuster By Mail because they want to rent Avatar, and they want to rent it now?
A few weeks ago Blockbuster released Sherlock Holmes on DVD and Blu Ray and it continues to generate millions in rental revenue while Netflix and Redbox just sit back and relax. On Tuesday, April 27th, Blockbuster will no longer be the one-stop shop for Sherlock Holmes, so the playing field will be evened out. But by then, will the movie be of any real value to Netflix or Redbox? Outside of residual rental revenue from already subscribed customers, the DVD itself poses no real opportunities to expand the Netflix or Redbox clientele. The plot thickens.
Netflix (NFLX) released their Q1 earning report yesterday, citing tremendous growth in just the first three months of 2010. The stock has tripled over the last 18-months, which is amazing considering the lack of growth within the stock market and from January-March, Netflix was able to add 1.2 million new subscribers, bringing their current total to around 13.5 million subscriptions. Until the studios entered into an agreement with Blockbuster to give them exclusive rights to new DVD and Blu Ray releases, it appeared that nothing would stop Netflix in their quest to crush the opposition.
There’s no doubt that Avatar will generate a huge amount of new subscriptions for Blockbuster and they will come from two types of people. Type #1 will be current Netflix subscribers that won’t be happy with waiting a full month for new DVD’s to come to them and decide to switch to Blockbuster By Mail. Type #2 will be people without current subscriptions to any online movie rental company, which to Blockbuster are just as valuable. If you think about it, the main reason anyone would sign up for online movie rentals is because they have at least one movie in mind they want to see right now. No one signs up for Blockbuster By Mail and says “I’ll get to my queue next month”, they go right to the available list and start plucking movies out, one by one.
Even if Avatar isn’t the DVD and Blu Ray hit people are expecting it to be, primarily because the movie will now be in 2-D, that still works in Blockbusters favor! For the first four weeks, consumers will rent the movie, watch it, talk about it and if the buzz isn’t good because of the lack of special features, Blockbuster won’t care. According to Warner Brothers, as reported in this Motley Fool article, 75% of DVD sales of new titles occur within the first four weeks after release. By then, Blockbuster will have already generated massive amounts of revenue from everyone that wanted to see it first and by the time Netflix and Redbox get their hands on it, the movie will be of little value.
Unless Fox, Sony and Warner Brothers stop making movies, the Blockbuster subscription list will vastly improve with every new release they offer. Somebody like me, that currently has a Netflix subscription and doesn’t have a Blockbuster subscription, will find a movie that they weren’t able to see in theaters. Then, when that movie comes out on DVD and Blu Ray and it’s only available at Blockbuster, the switch from Netflix will have to be made. While Avatar in 2-D is not that movie for me, it’s only a matter of time before I cancel my Netflix subscription and hop on-board the Blockbuster revival train.
If you’re the type of renter that doesn’t mind waiting a month for new DVD’s to become available, check out the Netflix 2 week free trial offer.
On the other hand, if you’re a “need your movies and you need them now” kind of guy, the Blockbuster 2 week free trial offer is probably the best bet.
Source: http://www.doughroller.net/smart-spending/will-avatar-increase-blockbuster-subscriptions/
NCR conference call today at 4:30, I expect some good information for BBI longs. buying more today!!! eom.
http://biz.yahoo.com/cc/8/112248.html
Avatar is available at blockbuster.com, BLOCKBUSTER stores, BLOCKBUSTER® By Mail and BLOCKBUSTER On Demand®.
Blockbuster has streamlined and now has better pricing terms with movie studios. With 28 day window in place for new releases, Blockbuster will easily BEAT earnings estimates! imo.
*****************************************
Blockbuster Celebrates Avatar Release With Na'vi Character Look-a-Like Contest
Stores Transform Into Avatar Headquarters With Character Standees, Glow-In-The-Dark Movie Posters
Fans of the sci-fi drama Avatar will find a piece of Pandora at their participating Blockbuster Inc. (NYSE: BBI, BBI.B) stores. To celebrate the release of Avatar Thursday, April 22, select BLOCKBUSTER® stores will transform into Avatar headquarters featuring a look-a-like contest, seven-foot-tall standee character posters, lenticular stickers and glow-in-the-dark movie window posters.
To share the Avatar experience, Blockbuster calls on fans to visit a store dressed as their favorite Na'vi character and take a picture in front of the seven-foot-tall standee or glow-in-the dark poster. Those who post their photos on Flickr at www.flickr.com/groups/bbavatar/ no later than midnight Sunday, April 25 will be entered into the Blockbuster Avatar Photo Contest.
Photos will be judged on originality and creativity. The winner of the contest will receive a $250 Blockbuster prize package. Contest rules can be found at http://blog.blockbuster.com/2010/04/avatar-contest. The winner will be announced Tuesday, April 27 at http://blog.blockbuster.com/2010/04/avatar-winner.
Customers who rent, purchase or pick up their pre-ordered copy of Avatar will receive a lenticular sticker – at select stores while supplies last – where the picture changes to feature different characters from the movie.
"We are thrilled to be able to offer our customers this exciting new title," said Doug McHose, Blockbuster senior vice president – North American operations. "This contest gives our customers an opportunity to share their enthusiasm for this incredible movie. We will continue to offer them access to the newest releases across multiple platforms as the leading multi-channel provider of entertainment."
Avatar is available at blockbuster.com, BLOCKBUSTER stores, BLOCKBUSTER® By Mail and BLOCKBUSTER On Demand®.
Source: http://blockbuster.mediaroom.com/index.php?s=119&item=890
"The delays in sending out the latest DVDs could slow Netflix's growth if impatient customers decide they don't want to wait the additional 28 days and defect to rivals, such as Blockbuster Inc., which are renting the movies at the same date they go on sale.
It hasn't had an effect so far: Netflix's first-quarter cancellation rate of 3.8 percent was the lowest in its 11-year history. But Netflix hasn't had to delay delivery on many hot movies yet. One of the biggest tests of its subscribers' patience may come Thursday when the "Avatar" DVD goes on sale. The movie won't be available on Netflix until May 20."
Source: http://news.yahoo.com/s/ap/20100421/ap_on_hi_te/us_earns_netflix
Strong Buy
Patience is a virtue. I like the recent deal between the movie studios with Blockbuster for the 28 day window. The deal makes sense, as a majority of DVD revenues is accounted for in the first 30 days after release. Fox (who recently struck a deal with Blockbuster) is set to release the #1 highest grossing movie of all time (Avatar) tomorrow, April 22nd!!!
Strong Buy
I agree, Blockbuster is set to gap up big time! Insiders obviously know the future is bright for Blockbuster, as evidenced by the rally the few days before last Friday's news of no Reverse Split and regained NYSE compliance expected.
I like the idea of digital downloads from the Blockbuster Express Kiosks to usb / flash cards and the point for sale capabilities of new releases. I also like the partnerships recently formed between big name consumer electronic device brands such as Samsung and Motorola, and hand held / mobile device providers. I noticed 'Netflea' recently formed a partnership with Seagate. I would not be surprised if eventually Blockbuster formed a partnership with Sandisk or even Western Digital...
Blockbuster management has hinted the future is bright for BBI. I believe the alliance between Blockbuster and NCR (and movie studios) is the key. We should get good news and further clarity in regards to recent and future developments when NCR holds their conference call and releases Q1 earnings this Thursday, April 22 at 4pm est, imo.
I agree, consolidation after a strong run up and weak hands folded. Over 80 million shares traded over the past 2 days .50 is the new floor and we move up from here, imo.
Blockbuster Bonds are picking up steam, eom.
Source: http://cxa.marketwatch.com/finra/BondCenter/BondTradeActivitySearchResult.aspx?StartDate=04/15/2010&EndDate=04/20/2010&SelectionOption=2&TradeSize=&SortBy=0&ID=MDkzNjc5QUMy
Blockbuster Shares Soar
It would now appear that billionaire investor Carl Icahn picked precisely the wrong time to dump his stake in Blockbuster. Less than three weeks ago, Icahn began selling off his shares in huge chunks, reducing his stake from around 17 percent to around 3 percent. At the time those shares were worth about 25 cents each. However, over the past three trading days alone, Blockbuster shares have soared 87 percent in heavy trading. (More than 56 million shares were traded on Monday versus a recent average of fewer than 10 million.) They closed Monday at 56 cents up 124 percent from what Icahn got. Analysts are having a hard time pinpointing the reason for the upsurge. Several are suggesting that it may be related to deals the home video renter has struck with several studios that will allow it to continue to rent movies beginning the same day that they go on sale -- unlike rivals Netflix and Redbox, which have agreed to wait four weeks before doing so. Other analysts see the potential for greater revenue from the company's kiosks, which not only will rent movies to Blockbuster customers on the day they're released but sell them, too.
Source: http://www.contactmusic.com/news.nsf/story/blockbuster-shares-soar_1139659
I hope so! I say let the weak hands fold. Remember last week? A similar pullback happened, only to gap up the next day. This is a great opportunity to buy, as I see .80+ very soon, imo.
Next stop .75 to .82, eom.
Thursday and Friday BBI rallied on no news (Insiders and "those-in the-know bought BBI) Afterhours on Friday, news to support / confirm the rally was finally released to the public. The positive comments over the past few weeks from BBI management is very reassuring. BBI will easily rally to over $1.00 as fears subside and the reality of upside potential emerges. Blockbuster is in the process of reinventing itself. Longs are in for a treat, shorts are gonna get squashed, imho.
GLTA!
BBI is set for a huge short squeeze / pop on Monday and is headed to $1.20+, imo.
Six Questions: Blockbuster Shareholder Gregory Meyer
Forget Carl Icahn — there’s a new activist investor intent on gaining a spot on the Dallas-based DVD rental company’s seven-member board.
Gregory Meyer, who holds a 645,000-share stake in Blockbuster and previously owned DVDXpress rental kiosks before selling to Coinstar — parent of Redbox — recently formally submitted a proxy notice to shareholders seeking to replace board member James Crystal.
Blockbuster CEO James Keyes promptly rebuffed him, citing stock ownership as insufficient grounds for warranting a board seat. Keyes cited Crystal’s “invaluable assistance” in Blockbuster’s recapitalization and transformation of its business model for his re-election.
The entire Blockbuster board is up for re-election at the annual shareholder meeting May 26.
Undeterred, Meyer April 12 wrote a letter to shareholders admonishing Blockbuster management for not heeding a 2005 letter he sent to the board urging the company to seriously consider entering the kiosk business, among other initiatives. At the time Redbox had a few hundred kiosks in operation and would have thought twice about expanding operations (to more than 22,000 kiosks today) had Blockbuster entered the fray, according to Meyer.
The investor said it is debatable that continuity of the current board, whose limited stock ownership Meyer also criticizes, is in the best interest of shareholders given that it has presided over a 95% decrease in stock value over the past three years.
Home Media Magazine asked Meyer to explain what the current board lacks and how he would help change Blockbuster’s fortunes, among other issues.
HM: In your letter to Blockbuster shareholders, you state that the reason for joining the board is not just about the company’s perceived inaction toward a nascent rental kiosk market back in 2005. What is the Blockbuster board not doing? And what should the company do differently than its current multiplatform strategy involving in-store, by-mail, VOD and kiosk?
Meyer: Given the speed of innovation in the distribution of home entertainment, at least some members of the board should be acutely aware of the new technologies and business models that are emerging to determine which ones have the potential to succeed on a mass scale because these are the ones that can’t be ignored.
The past decade has seen the by-mail subscription model and the DVD rental kiosk gain mass acceptance for different reasons. In both instances, Blockbuster could have dominated these now billion-dollar channels had the company acted early enough and not been in denial. At a minimum, the current board needs to be vigilant enough to attempt to see what’s around the next corner and, ideally, to foster a culture that encourages innovation from within.
The multichannel strategy makes sense, as long as those channels aren’t set in stone and include emerging technologies and business models that resonate with consumers. Assuming the deal terms are fair, Blockbuster’s recent partnership with T-Mobile on their HTC HD2 smartphone demonstrates a step in the right direction, but this is an ongoing process.
HM: Should Blockbuster license or sell its by-mail and on-demand platforms to third parties similar to what it has done with NCR Corp. and Blockbuster Express kiosks?
Meyer: Given the right circumstances, it might make sense to consider the sale of certain assets. For example, if you look at the enterprise value of Netflix today, it is about $4.8 billion, which values each subscriber at more than $350. Applying this to Blockbuster’s most recent subscriber count of 1.6 million members would yield $560 million.
Now there are valid arguments for why Netflix deserves a higher multiple per subscriber due to its superior execution and growth rate, but that only goes so far. Blockbuster’s service offers some advantages as well that can’t be easily replicated by Netflix, such as the ability to combine the long-tail selection of the by-mail/streaming subscription model with the immediate gratification of trading in your DVD at the store for a brand new release. This is an extremely compelling value proposition for many customers that, if marketed properly, could give Blockbuster an edge and restore its relevance.
Blockbuster’s primary objective is to get back on solid footing financially, and if the sale of a particular platform allows that to happen then it should be considered.
HM: How does Blockbuster continue to evolve its brand when saddled with nearly $900 million in debt? How would you eliminate it in today’s economic environment? Is it even possible?
Meyer: Priority No. 1 should be to stabilize cash flows from the core business. The market is projecting decreasing store comps ad infinitum, which is probably too gloomy given the significant reduction in industry capacity over the past year as well as increased traffic resulting from the 28-day head-start that has just started to kick into gear. Add in cost savings from reduced store leases and overall SG&A reduction, and Blockbuster has the potential to post some healthy cash flow figures in the near future — although this largely depends on proper execution by management. Remember that during fiscal 2009, Blockbuster generated over $2.1 billion in gross profit, which is significantly greater than the revenue from either Netflix or Redbox.
Regarding debt reduction, the company has been talking about international asset sales for some time but we haven’t seen much since the sale of the Ireland assets last year. I believe there are some additional creative structures that can leverage Blockbuster’s less obvious assets to reduce its current debt load meaningfully. I have presented the firm’s financial and legal advisers with one such proposal, which I can’t comment on further due to its confidential nature. Then, of course, there is talk about a debt-for-equity swap, but this is not in the best interest of equity holders and should be viewed as a last resort, not a foregone conclusion.
HM: Despite Blockbuster being a brand synonymous with home entertainment and movie rentals, many pundits and analysts believe it to be anachronistic compared to Netflix and other alternatives. How do you convince them otherwise?
Meyer: On the plus side, the Blockbuster brand has near ubiquitous recognition, which is a huge asset. That said, a lot of what is associated with the brand stems from an earlier time when the company dominated the video rental sector and allowed itself to become complacent and take customers for granted.
Going forward, the Blockbuster brand has the potential to take on some very positive associations, such as the ability to get new-release DVDs on street date. I believe the brand can once again regain the power to excite customers who know they can count on Blockbuster to get the latest new-release movies as soon as they are released. Finally, the key is to extend this new, positive brand association into the digital and mobile distribution channels so that those customers who do prefer to acquire their content in digital form know that the latest new-release DVD rentals and retail downloads are available at Blockbuster On Demand.
HM: The studios appear to be throwing Blockbuster a lifeline by imposing 28-day new-release embargoes on Netflix and Redbox. How does Blockbuster take advantage of that window considering its limited resources?
Meyer: Blockbuster has spent tens of billions of dollars buying studio product over the past 25 years, so it is natural and healthy to see them acting in concert to support one of their best customers. It is essential that Blockbuster leverage this studio support to the fullest by clearly communicating its street date availability advantage to past, current and potential future customers via smart, efficient and creative marketing on-line and in-store. Better use of customer e-mail is certainly called for, as are low-cost viral marketing campaigns to get the word out. Blockbuster’s marketing for The Blind Side and Sherlock Holmes was a good start, but it’s not enough.
HM: Is there still a need for the video store, or should Blockbuster just focus on its alternative distribution channels?
Meyer: Over the past year, brick-and-mortar video rental stores in the United States generated substantially more revenue than by-mail subscription and kiosk operators combined, including Netflix and Redbox. So while the growth rate of these alternative distribution channels is highly positive and the growth rate of the traditional video store is not, it’s important to recognize that a lot of money still gets spent at the brick-and-mortar level and will for years to come.
The cash flow generated by Blockbuster’s top performing stores is significant and should remain significant for some time in light of the recent 28-day window as well as the elimination of many competitive physical stores, which have closed in the past 12 months. But a careful balance needs to be struck between maximizing current cash flow from the traditional model and investing in ways to transition customers into future distribution channels such as digital delivery via Blockbuster On Demand. This is not an easy task but by no means an impossible one either.
Source: http://www.homemediamagazine.com/blockbuster/six-questions-blockbuster-shareholder-gregory-meyer-19108
"As a result of the continued progress on our recapitalization initiatives, we have rescheduled the annual stockholders' meeting," stated Tom Casey, Executive Vice President and Chief Financial Officer of Blockbuster Inc. "We believe the additional time will provide us with the greatest opportunity to successfully complete one or more of our ongoing recapitalization initiatives prior to the annual meeting, possibly resolving our NYSE non-compliance and avoiding the need for a reverse stock split."
Maybe Blockbuster will be bought out / merge with NCR or even a large movie studio? At any rate, congrats longs, sorry shorts!
I see a nice pop to $.85 - $1.15+ with the recent developments and I am sure many initiated short positions over the past few days, Monday will be a really bad day for shorts!
Looking great! No Reverse split and delay of the shareholders meeting!!
$$$$$$$$$$$$TRONG BUY!!!!
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NCR Corp To Place DVD Kiosks At Nearly 500 Kwik Trip Stores
(NCR) has won a contract to place its DVD rental kiosks in outlets of Kwik Trip Inc., a convenience store and gas station chain with about 500 locations across Iowa, Minnesota and Wisconsin.
NCR will begin placing its kiosks, which are licensed under the Blockbuster Express brand, in Kwik Trip stores beginning next month.
NCR Entertainment President Alex Camara said in an interview that NCR currently has just under 5,000 self-serve rental kiosks and "so far, everything's going OK" as the company aims to reach 10,000 by the end of 2010. He said NCR should hit 7,000 by the end of June.
Camara also confirmed the company plans to begin selling DVDs at its kiosks this summer, though it hasn't yet signed any agreements with movie studios.
"We've got the technology down, we've got the capabilities to do this," Camara said. Studios are "very interested."
News of the DVD sales was first reported by Bloomberg Thursday night.
Shares of Blockbuster Inc. (BBI) rallied Friday, closing up 10.1% at 40 cents. Blockbuster has been in talks with lenders this spring as it tries to sidestep bankruptcy.
NCR closed Friday down 2.51% at $15.12.
Camara told Dow Jones Newswires that NCR likely wouldn't discount the DVDs like some brick-and-mortar retailers do, since the kiosks can't offset losses with many other offerings. He also noted that some supermarkets that the company operates in may already sell DVDs and could prohibit NCR from selling them as well. NCR has outlets in Publix Super Markets Inc. (PUSH), Sheetz Inc. and other stores.
Camara also confirmed that NCR is in talks with studios to rent new-release DVDs for $2 per day, double its current rate and double the rate of competitor Redbox Automated Retail, a unit of Coinstar Inc. (CSTR). The company now offers a catalogue of older movies from studios and purchases new-release movies from third-party retailers to skirt a block that studios have on some outlets renting DVDs within the first 28 days of release.
Camara didn't provide any timeline for when NCR would begin to offer $2 new releases.
Source: http://online.wsj.com/article/BT-CO-20100416-713031.html?mod=WSJ_latestheadlines
Once Icahn is done selling, we should get a nice bounce. The recent news of the new alliances formed between Blockbuster and major movie studios, and the recent comments from CEO Keyes are very reassuring from an investors standpoint, imo.
Strong Buy
Blockbuster Inc. Announces New Agreements with Fox, Sony and Warner
Agreements Show Support from Key Partners
DALLAS, April 6 /PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE: BBI, BBI.B) today announced new agreements with Twentieth Century Fox Home Entertainment LLC and Sony Pictures Home Entertainment Inc. These new agreements, along with the previously-announced agreement with Warner Home Video, will provide day-and-date availability of movies for Blockbuster's store and by-mail channels. Additionally, these studios will provide new enhanced payment terms to Blockbuster in exchange for a first lien on Blockbuster Canada Co.'s assets. Blockbuster Canada will continue with business as usual by providing high-quality home entertainment to its customers.
"These important steps with three of the leading movie studios will continue a steady supply of top-rated movies for Blockbuster customers," said Tom Casey, Blockbuster Inc. Executive Vice President and Chief Financial Officer. "These positive signs of studio support are part of our overall recapitalization effort to drive top-line performance while reducing debt and operating costs at Blockbuster. This affirms our strong and collaborative business relations with these critical vendors."
The new payment terms help Blockbuster continue the recapitalization initiatives already underway. Management has previously announced a number of concurrent efforts to recapitalize the company and assure its long-term growth and success. Blockbuster will continue to rationalize its U.S. store portfolio and aggressively manage working capital. Additionally, Blockbuster has implemented a plan that cuts operating costs by $200 million this year to preserve cash and further improve liquidity. Blockbuster is also in discussions with advisors for its bondholders related to debt recapitalization.
"We will continue to offer our customers all types of innovations as the leading multi-channel provider of entertainment including the recently announced agreement with Warner Bros. Home Entertainment Inc. for immediate availability of new titles, the addition of BLOCKBUSTER On Demand® for select Samsung 2010 Blu-ray Players, HDTVs, and Blu-ray Home Theater Systems, and the addition of BLOCKBUSTER On Demand for smart phones launched recently on T-Mobile's HTC HD2," said Casey.
Source: http://blockbuster.mediaroom.com/index.php?s=119&item=885
STRONG BUY!!!
The conversion ratio of 1 Class B = 1 Class A Common is good news, as opposed to 1 Class B = 2 Class A Common. This means less dilution for shareholders once both classes are combined. I expect BBI to trend higher in the coming weeks, imo.
Probably the quiet before the storm. I am sure there are many things going on behind the scenes. Scratch is set to be released anytime now.
The lawsuit against Activision is also picking up steam.
http://www.lasuperiorcourt.org/civilCaseSummary/index.asp?CaseType=Civil
Case Number: bc411687
Bedlam Games, the developer of Scratch, phone number is (416)214-9888 It might be worth a try contacting them for more details on the release date of Scratch.
Blockbuster Touts New-Release Prowess
Its stock may be worth pennies, but Blockbuster’s access to new-release movie rentals from Warner Home Video could be priceless.
Dallas-based Blockbuster is running online banners and in-store signage underscoring availability of most recent Warner releases Sherlock Holmes and The Blind Side, both of which aren’t available at Netflix and Redbox until later this month.
The financially challenged DVD rental giant last month scored a coup of sorts from the largest home entertainment studio when it maintained access to new release movie rentals weeks ahead of its major rivals Netflix and Redbox.
“Rent It While It’s Still a New Release,” proclaims the online banner, highlighting Holmes availability (since March 30) at Blockbuster stores, by-mail and on demand.
Both titles also are available at Blockbuster Express kiosks, which is managed separately under a license deal between Blockbuster and NCR Corp. In other words, NCR acquires Warner titles via third-party retail channels (and not the studio), a strategy Redbox employed until striking a distribution deal with Warner earlier this year.
That deal, similar to the one ironed out between Netflix and the studio in January, affords the kiosk vendor superior access to Warner new releases and catalog — four weeks after street date. In the interim, Warner titles are available at retail, traditional video stores, iTunes, and cable and Web-based VOD.
Indeed, Blockbuster reported that The Blind Side was its No. 1 DVD rental for the week ended March 31.
Source: http://www.homemediamagazine.com/blockbuster/blockbuster-touts-new-release-prowess-18975
STRONG BUY!
I do not see the share price declining. Blockbuster has plenty of cash on hand to make payments for at least the next year or more. Blockbuster will have even more cash with the sale of assets both in the US and overseas, and the with the rollout of Blockbuster Kiosks and internet / mobile streaming capabilities picking up steam. Icahn has more than likely sold all of his shares at this point. Investors were buying hand and fist as evidenced by the volume and strong support of .25, imo. glty.
I am glad Icahn is leaving BBI. Now Blockbuster CEO Keyes can make decisions free from Icahns undue influence. Over 10% of shares were unloaded over the past few days (maybe more considering those who jumped ship along with Icahn) and the support of .25 has held strong. Blockbuster has plenty of time to turn things around and I see this as a great opportunity, imo.
In 2005, Carl Icahn spent roughly $320 million on his stake at a time when BBI was over $10 per share. According to a recent SEC Form 4 filing, over the past few days, Carl Ichan sold 14.3m shares of BBI at an average price of $0.26.
I believe this was done to offset other gains for tax purposes. This would explain the continued selling pressure on BBI over the past several days. At any rate, this is a great opportunity for the individual investor and I expect a rebound from these depressed levels, imho.
Source:
http://www.sec.gov/Archives/edgar/data/921669/000114036110014209/xslF345X03/doc1.xml