Blockbuster Reports 2Q Loss
Dallas, Blockbuster Inc.’s total revenues decreased 1.6% to $1.40 billion for the second quarter of 2005, down from $1.42 billion a year ago. Net loss for the quarter totaled $57.2 million, or 31? a share, compared with net income of $48.6 million, or 27? per share, for the second quarter of 2004.
“Our second quarter results reflect both the success of our new initiatives as well as the impact of the declining store-based video-rental industry,” said John Antioco, chairman and CEO, Blockbuster. “Our ‘No Late Fees’ program is working and our on-line business continues to perform extremely well. These two initiatives helped increase our total rental revenues 9% quarter over quarter, excluding extended viewing-fee revenues. Although we invested heavily to achieve our revenue results, which combined with industry trends impacted our bottom line, we believe we are affecting a permanent improvement in our business that will enable us to address the decline in our core rental business, develop new revenue streams and drive future growth.”
In other news, Blockbuster Online is changing the price of its three-movies-out rental plan from $14.99 to $17.99, reflecting enhanced value and service levels for consumers. Launched in August 2004, the service has a subscriber base of more than 1 million members.
Besides receiving their movies faster, Blockbuster Online customers have a growing library of more than 40,000 titles to select from and should now experience increased product availability. Additionally, Blockbuster Online now gives customers two free in-store rentals per month for as long as they subscribe to the service.
Self-Checkout Transactions to Surpass $450 Billion by 2008
Franklin, Tenn., Anew study conducted by IHL Consulting Group found that self-checkout transactions for 2005 will be $161 billion. The study predicts the value of the transactions will be more than $450 billion by 2008. Analysts attribute the increase in transaction sales to the growing numbers of self-checkout systems in supermarkets, supercenters and home improvement centers.
The study found that 94% of respondents already had tried self-checkout. Men are 60% more likely than women to use self-checkout on nearly every trip to the store. According to the study, the biggest complaint from consumers about self-checkout is the need for employee assistance. Respondents said they needed help one out of every three times with self-checkout.
Read All About It: Wireless Security
New York City, Wireless security is an all-or-nothing proposition: If one part of the system is insecure, the whole system is insecure. In the article: “Is Your Data Safe?” Robert Danahy of Zebra Technologies explores some of the keys to network security. To read the article, click on the “Guest Commentaries” tab at the top of the page.