The Daily Gimmick: Blockbuster's TV Ads (NFLX, CSTR, AMZN, AAPL)

Being Blockbuster must be just awful now.  We picked this as one of several key brands which would disappear, and it has already met our criteria for disappearing because it filed for bankruptcy and no longer trades as a ‘real’ stock.  More importantly, it keeps shrinking and it is in a group that shrinks faster than domestic smokers  of the 1990’s.  After its bankruptcy filing, it is now making a Hail Mary pass that is nothing more than yet another gimmick.  Blockbuster is going for an advertising blitz focusing on what it calls a 28-day window advantage, with the slogan of “Less Waiting. More Watching.”  The company has announced a major network and cable network ad campaign with a 30 second spot on programs like NBC’s “Today” show and ABC’s “Dancing with the Stars: Finale.”

The company says that its objective is “to reinforce that Blockbuster is the place to go to get the hottest new releases on their release date, many of which are not available at Netflix or Redbox for another 28 days. The campaign also
reintroduces Blockbuster as a multi-channel entertainment provider of movies.”  Redbox is the Coinstar Inc. (NASDAQ: CSTR) brand that is growing via its red rental boxes in grocery stores and other prominent high-traffic locations.  We won’t bother telling you about Netflix, Inc. (NASDAQ: NFLX) and its new streaming video service with more than 20,000 titles.  Amazon.com Inc. (NASDAQ: AMZN) and Apple  Inc. (NASDAQ: AAPL) have also made their giant in-roads here at the expense of Blockbuster.

Blockbuster’s ad blitz will be between $15 million and $20 million that was approved by the bankruptcy judge according to PaidContent.org.

The company’s ad campaign is exaggerating what it calls “‘relatable’ pain points'” of waiting “to reinforce how unacceptable it is to wait 28 days for new releases.”  A family is hurrying to an airport ticket counter and told that their flight to Honolulu is delayed 28 days.  A second snap shows a man and woman walking into a restaurant for a
romantic dinner and they get that the table will be ready in 28 days.  the last shows a dental hygienist standing over a young girl in the dental chair with her mouth stretched open by an apparatus and she is told that the dentist will with her in 28 days.

Blockbuster does have the new movies on the day of the release, which are available via stores (if you can still find one), mail, streaming on-demand, and by download.  A second spot is set to air on December 7.

Unfortunately, this is a gimmick.  A costly gimmick, even if this 28 day advantage is currently a reality.  The problem is that it did not stop the endless bleeding in time and now that it is bankrupt it has a stigma.  maybe Blockbuster should have convinced its bankruptcy judge to secure enough cash for a Super Bowl advertisement.  Instead or too, six-five pick-em’.  The addiction of Netflix and the rise of many other mediums for movie renters and buyers having grown and grown is why this is a gimmick.  Blockbuster could have owned that space and been a powerhouse.

Amazingly, Blockbuster does still offer franchising opportunities on its ‘business opportunities’ section of its site.  Financial requirements start at a minimum net worth of $300,000 and a minimum liquidity of $100,000 for the first store.  Would it be fair to assume that potential franchisees aren’t exactly beating down the company doors?  We have not seen any fresh statistics on that franchise demand of late.  There is probably some good data that was made available over the recent years as Blockbuster was pulling out of many locations.

“Less Waiting. More Watching.”  That is probably the new slogan for the next round of bankruptcy lawyers watching “Blockbuster: The Sequel.”

JON C. OGG