Blockbuster: Ready to Tango With Telcos?
Early leaders in the space include Apple, Amazon, Netflix, Hulu, and YouTube. Blockbuster thinks it can leverage its 60 million+ retail customer relationships to join that fraternity, and is now openly courting the likes of Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) for help. Blockbuster CEO Jim Keyes said as much at the recent Citigroup Media Investor Conference, held this week in Phoenix.
A Blockbuster/telco content partnership makes logical sense. Large telcos like Verizon have already revealed their CDN intentions. Accessing Blockbuster’s content library could be a plus. Of course, the devil is always in the details. The partnership graveyard is full of ventures that made good logical sense.
— Bernardin Arnason, Managing Partner, Pivot Group , and Chairman, TelcoTV 2008