It’s been almost four months since my Patriots went down in Arizona and the scars have finally healed a bit. Tonight, I am downloading from iTunes – Super Bowl XLII. While the 778MB file is downloading in the comfort of my home … I run across this headline: Blockbuster to Test In-Store Movie Download Kiosks. Common sense tells me that this is a train wreck waiting to happen.
Let’s ask a simple question … “why would anyone go to a bricks and mortar storefront dedicated to entertainment rentals to get something that can get from the comfort of their own home?” Seriously, does it make any sense at all? People want to get away from the bricks and mortar / physical media experience at least when it comes to entertainment rentals. iTunes, Amazon Unbox, Netflix Streaming / Set Top Box, Comcast Project Infinity, Apple TV are just some of the initiatives aimed at giving people spontaneous choice from the comfort of their home and eliminating the need to drive somewhere for what you want when you want it. Why does anyone think that anyone is going to say “let’s drive down to Blockbuster to fill up my iPod with some videos”. It is just counter to what consumers want.
But as my Patriots/Giants download approaches 82% on my high speed broadband cable connection, I think of a recent article I read in Wired “Free! Why $0.00 Is the Future of Business”. Very interesting reading about cross promotion and the difference in perception of $0.00 and $0.01. But connecting this to the Blockbuster Kiosk .. and kiosks in general – there may be a place for kiosks after all. While I maintain that Blockbuster is not a “destination trip” and replacing a DVD with the same file download I can get from the comfort of my home makes no sense. Putting a kiosk in a place that is a “Destination Trip” or a “Necessary Trip” —- Starbucks, Dunkin’ Donuts, Airports, Supermarkets, Borders/Barnes and Noble – could be very logical.
I have to admit that I like the Red Box at my Stop and Shop – it is a kiosk I use. I am there anyway, it is a simple transaction to get a DVD plus it is $1 / day / movie. Can’t beat that. The drawbacks – the selection is limited and I do have to return the movie. Now, where this gets interesting is the use of cross promotion. Imagine if you spend $100 on groceries and then you get a free movie? Or if for every 5 overpriced Soy Vanilla Lattes – you get a free movie? Or if you are a member of an airline club, you get a free movie download? If you purchase 5 books, you get a free movie download? You buy an iPod from a Best Buy and you get 3 movies free. All from a conveniently located kiosk.
Would I make a loyalty decision based on this perk? Well I have to admit that I don’t know the difference between Barnes and Noble and Borders – they are the same in my eyes, can’t even tell you which one I am in when I am in the store. Would either of those chains want to participate in this sort of promotion to get me in their store? Seems like they would and oh, they could also be selling downloads at the same time – since Borders and Barnes are true Destinations. Common sense – right. Logical – right. Not like that David Tyree catch in the Super Bowl – that defies logic and common sense.
