Blockbuster Lays Out Growth Targets

Blockbuster (BBI) CEO John Antioco, speaking at an investor conference yesterday, said his company could double its online DVD subscriber base to over 4 million during 2007 as its Total Access promotion continues to pay off. Antioco said that in the 60 days since Total Access was unveiled, Blockbuster has signed up 700,000 new subscribers.

These growth numbers are very interesting. Netflix (NFLX) only added approximately 650,000 subscribers in the fourth quarter, which implies that Blockbuster is ahead of its main competitor in grabbing new business right now. Blockbuster stock is reacting positively, as one would expect, jumping 5% to over $6 per share. It will be interesting to see how Netflix’s 2007 growth projections are impacted, if at all, from Blockbuster’s big push aimed directly at them.

Full Disclosure: No positions

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One Thought on “Blockbuster Lays Out Growth Targets

  1. Starting December 19, 2006, Blockbuster Total Access (online) is giving customers 1 free video game rental each month plus the first month is free.

    Sign up at http://www.blockbuster.com/bbfamily
    First month free with promo code 1557TA

    Facts:

    1. Offer changes to 2-week trial beginning Jan 15 2007. 3 movies out at a time. So, signup now !

    2. Members can exchange online movies for free DVD rentals at their local Blockbuster (online mailer/movie will work like a coupon). Also, as soon as the online movies are exchanged at the store, the next movies in your que will ship as well. You essentially double the # of DVDs you can watch by returning them to the store (you can’t do this with Netflix).

    3. Members will also receive 1 in store coupon every month for a free movie OR video game (even during free month).

    4. Only pay $17.99 per month (3 out) after the 1st month or downgrade to the $14.99 (2 out) or $9.99 (1 out) plans.

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