Citing the success of its online subscription service Total Access as a major factor, Blockbuster announced this week that the company ended the year with approximately 2.2 million online rental subscribers, including approximately 2 million paying subscribers.
"We are pleased that we achieved our year-end goal of 2 million subscribers, an addition of more than 500,000 paying subscribers since the end of the third quarter. We credit our success to Blockbuster Total Access, which gives our online customers the option of returning their DVDs through the mail or exchanging them at a participating Blockbuster store for free in-store movie rentals," said John Antioco Blockbuster Chairman and CEO. "The strong consumer appeal of Blockbuster Total Access has translated into significant subscriber growth and was accomplished without any broadcast media except in a handful of test markets."
Under the Blockbuster Total Access program for each online rental exchanged in the store, customers can receive a free in-store movie rental. Blockbuster Total Access also offers subscribers faster shipping cycles. When subscribers return their online rentals to a participating Blockbuster store, the store check-in process automatically initiates the process of shipping the next available movies in the subscriber's rental queue, so customers generally receive their online movies a day faster than if they had dropped the return movies in the mail themselves. In-store movies are still subject to store rental terms, including due dates, and must be returned to the store from which they were rented.
"Thanks to Blockbuster Total Access, customers no longer have to choose between renting online or renting in-store, and they never have to be without a movie," said Antioco. "We believe this compelling and unique offering will make blockbuster.com the fastest growing online DVD rental service in 2007."
For more details, check out the Blockbuster press release.
