Court Rejects Online Terms Of Service That Reserve The Right To Change At Any Time

from the wow dept

If you look at many online terms of service, they reserve the right to change the terms at any time. Some force you to re-agree to the terms -- but others don't. In the past, courts have ruled that if someone didn't agree to the changed terms, the new terms could be found to be unenforceable, but a recent decision has gone much further, effectively saying that the entire terms of service are void if they claim they can be changed at any time. Sent in by Blake, the ruling said that Blockbuster's online terms of service were "illusory" and unenforceable because it included a clause saying it could change the terms at any time. So, even though the term it was trying to enforce was in the terms that the person agreed to, the court found the entire terms unenforceable. This is quite a ruling that could have a pretty major impact on any online service that has terms that insist they can change at any time. While it's just a district court ruling and may be reversed on appeal, it's something anyone running an online service should pay attention to.

Filed Under: changed terms, illusory, terms of service, unenforceable
Companies: blockbuster

Blockbuster Takes Its PPV Streaming Movies To TiVo

from the lessons-learned dept

Blockbuster announced back in November that it would begin offering pay-per-view movie downloads, but its plan had a couple of major pitfalls: it required consumers to buy a proprietary box to be able to buy the downloads, and it didn't offer a very wide selection. It's cracked one of those, sort of, by making its OnDemand service available to TiVo users, who will now be able to access it alongside rival services from Netflix and CinemaNow. It's heartening to see that Blockbuster has realized the standalone box strategy isn't viable, even if others haven't figured it out. The lesson is pretty clear: if you're going to come out with a streaming service, you're going to fail if you force users to buy a proprietary box, and your only chance to succeed is by making it available on as many platforms as possible. That's not a guarantee, mind you, as there are still plenty of ways to screw things up, or to have things screwed up for you by movie studios.

Filed Under: movies, streaming
Companies: blockbuster, tivo

Today's Ridiculous Lawsuit: Wal-Mart, Netflix Sued Over Conspiracy To Create A Monopoly

from the ugh dept

Way back in 2002, Wal-Mart decided to enter the online DVD rental business, launching an almost exact replica of Netflix. Of course, Wal-Mart quickly discovered what almost every other player in that marker discovered: just offering a competing service to Netflix isn't enough to get anyone to use it. Wal-Mart had a lot of difficulty signing up customers (and keeping them once they signed up). The whole project was going nowhere fast, and eventually, Wal-Mart decided that it was a waste of time to throw more money into a project that was pretty far removed from its main business, and decided to simply let Netflix take over its online DVD rental service. This was a reasonable business move.

However, nearly four years later, a lawsuit has been filed claiming that Netflix and Wal-Mart "conspired to create a monopoly" in the online video rental market, and as a result of that monopoly, Blockbuster raised its prices. Read that sentence again. Netflix and Wal-Mart are being accused of creating a monopoly -- and because of that monopoly another major player in the space raised its prices.

If there's another major player in the space, there is no monopoly.

Besides, the folks bringing the lawsuit are going to have to convince a judge that the relevant market is online DVD subscription services, rather than any kind of home movie viewing service (which includes store rentals, purchases, internet downloads, subscription services and more). This seems like a random bogus lawsuit targeted at a company with deep, deep pockets (Wal-Mart), rather than anything serious.

Filed Under: antitrust, dvd, monopoly, online rental
Companies: blockbuster, netflix, wal-mart

Now Blockbuster Wants To Sell You A Proprietary Box So It Can Sell You Streamed Movies

from the broken-record dept

Stop us if you've heard this before: a company wants to sell people a box so they can pay to download movies. Sound familiar? That's because plenty of companies have tried it before -- all with little success. Consumers haven't shown much interest in buying service-specific hardware so they can buy movie downloads from a single provider for a number of reasons: poor selection of movies, the cost of downloads, the cost of the hardware, download times, and lack of portability to name a few. What's amazing is that so many companies keep lining up with their own efforts, without ever really fixing any of the problems, as if time will solve them. Now, it's Blockbuster's turn, as it's announced a $99 box that can access $2 movie downloads. Blockbuster says its service is different than all the failed ones before it because it has "more recent" movies. Netflix's streaming service has 12,000 films and TV shows -- less than 10 percent of its collection, thanks to Hollywood licensing schemes. Blockbuster has a whopping 2,000. But they're newer, they swear. So not only has Blockbuster failed to solve one of the problems of these services (narrow selection), they've exacerbated it and are calling it a feature. Now that sounds like the path to success.

Filed Under: movies, settop box, streaming, videos
Companies: blockbuster, netflix

Blockbuster CEO Is Still Confused By The Long Tail

from the have-you-taken-a-look-at-your-competitors? dept

In 2004, Chris Anderson wrote his feature article for Wired Magazine in which he coined the term "the long tail" to describe the business possibilities made possible by digital distribution. Four years and one best-selling book later, the CEO of Blockbuster is still confused by the concept that has been utilized by Netflix to wreak havoc on his business model. Yet, in a recent interview, the head of Blockbuster, Jim Reyes, misses the entire point of the long tail.

In response to a question regarding the small catalog of Movielink, Blockbuster's digital download service, Reyes responded, "When was the last time you watched 10,000 movies, you know? I don't care how many movies are available to me. As my personal taste as a customer, I want to watch the new stuff so whether we have 10,000 movies or 200 movies it doesn't matter if I don't want to see any of the movies that we have." The point of the long tail is not to ignore the hits, but to make available more. While Reyes's quixotic opinion may appease viewers with very limited tastes, when distribution and content creation is exceedingly cheap, it makes no sense to limit content. In his original article on the concept, Anderson noted that one-fifth of Netflix rentals are outside the top 3,000 movies. Clearly, a sizable minority of movie-watchers want to see films outside Movielink's inventory that "is heavily weighted toward newer releases and mainstream staple titles."

Filed Under: downloads, long tail, movies, rentals
Companies: blockbuster, movielink

And You Thought The Next Generation Video Standards Battle Was Over?

from the we've-got-a-new-one-coming-on dept

If you thought the questions about what technology standard we'd be using to watch movies was settled when Blu-ray won the next generation DVD standards battle, then you're in for a bit of a surprise. In taking nearly half a decade to decide which standard would make it, the DVD camps left open plenty of opportunity for online competitors to start making their moves. The technology for delivering movies online has been rapidly improving. But, of course, what we didn't count on was that it would just create a huge new mess.

Earlier this week, there was all sorts of talk about Netflix streaming movies to the Xbox as part of Netflix's effort to get consumer electronics companies to build in support for Netflix streaming. As we warned when that announcement was made, it's a bad idea for Netflix to focus on a proprietary streaming solution, as it's only going to set up another standards battle. And, indeed, Blockbuster is working on its own such solution. Then, of course, everyone knows that Apple's in the market with the AppleTV. And don't forget Sony, which is selling a special (extra expensive) TV for downloading movies. And, of course, there are countless startups in the market as well.

Oh, and how could we forget Amazon? The company is now announcing its own proprietary online store for streaming movies and TV. This one piggybacks a bit on Sony's awful plan (meaning if you buy that super expensive internet-connected TV, you'll also be able to stream movies from Amazon).

But the end result is a total mess for the entire market, and that doesn't help anyone. All of the players should take a look at how badly the multi-year DVD standards battle hurt the industry. It makes people unwilling to buy certain hardware, as they don't want to be stuck with the "loser" a year from now. What's wrong with coming up with a single standard for streaming movies from any particular service to various TV-connected devices and computers? Then let the different providers compete on actual services provided? That would increase adoption, and let these companies do what they do best, rather than fighting a can't-win battle against too many other competitors.

Filed Under: movies, next generation, online video, standards, streaming, television, video
Companies: amazon, apple, blockbuster, microsoft, netflix, sony

Blockbuster Looks At Circuit City's Books; Ditches Acquisition Offer

from the no-real-surprise dept

We were one of a very small number of people who actually saw some logic behind Blockbuster bidding for Circuit City -- though, it seemed unlikely that Blockbuster viewed the purchase in the same way we did. Most people assumed (probably correctly) that Blockbuster didn't really have much of a plan at all, other than to merge the two struggling companies and have an even bigger mess on their hands. Blockbuster has now withdrawn the offer to buy Circuit City, gamely claiming that it has to do with "market conditions" and a better understanding of just how awful Circuit City's books appear to be. That's press release talk. What's more likely is that Blockbuster realized that everyone was right: it would screw up the merger and make a bad situation worse.

Filed Under: mergers, retail
Companies: blockbuster, circuit city

Blockbuster Thinks You'll Drive To A Store To Download A Movie?

from the our-dumb-ideas dept

While I do think Blockbuster is trying a few interesting ideas in its ongoing effort to adapt to a rapidly changing market, some of its ideas are just flat out bad. For example, new Chairman and CEO James Keyes actually spent time at the company's recent shareholder meeting to unveil and talk up the possibilities of a special movie download kiosk that can be placed in stores. It sounds like someone got "kiosk fever." For those who don't follow the e-retailing space, I guess you can be forgiven for actually thinking digital kiosks make sense (though, barely). But the concept of in-store kiosks for digital content has been around for over 20 years, and shows up like clockwork every two years or so -- and fails miserably every time. People just aren't interested -- especially when they have the best, most useful "kiosk" they could ever need at their home in the form of their computer. The idea that people will want to go to a Blockbuster store to download a movie seems preposterous.

Filed Under: brick-and-mortar, downloads, kiosks, movies, video
Companies: blockbuster

Can Blockbuster Turn Its Stores Into Destinations?

from the worth-a-shot dept

Blockbuster clearly knows it's facing mounting challenges to its business. The company has been mostly outplayed by Netflix in the online rental market (though, Blockbuster's competing offering has done much better than some others who have tried to play the Netflix game). The company's financials have been a bit of a mess, but it's still planning for the future -- and that includes recognizing that the market is changing drastically, and it needs to change with it. While no one knows if it will be able to survive these changes, it's still rather refreshing to at least see the company try to meet those challenges head on. Recently, it's talked about a strategy to create its own set top box as well as put out an unsolicited bid to buy Circuit City. While both ideas have some problems (the Circuit City acquisition would be particularly hard to pull off for example), it does show that the company is trying to branch out.

What may be even more interesting, though is that Blockbuster clearly recognizes that it has an asset in its brick-and-mortar stores that Netflix can't easily copy. While some may say that the stores are a liability, that may depend on what Blockbuster can do with them. Already, it tries to leverage the stores in its online rental service (allowing you to return movies to the stores and immediately pick up a new film as part of your subscription), but as Gizmodo points out, it's also experimenting with making the shops into real destinations, rather than just rental shops. It's playing with a few different "formulas" to see how people respond -- including setting up a bar where people can buy soda or coffee and another where there's free WiFi and people can play video games on a big screen. It's also testing out setting up a store where shoppers can buy consumer electronics. You can consider that last one a test run for what would happen if the Circuit City deal goes through.

Turning the stores into more of a destination, with a variety of options on ways to make money off of the customers is a necessary strategy -- though, it's hard to pull off well (so, at the very least, it's good to see the company experiment before rolling something out nationally). Sam Goody, the big record store chain, tried to do something similar a few years back, and it didn't work out all that well. A large part of the problem may be really convincing people that it's a worthwhile destination. This is one case where the company's reputation matters, and Blockbuster's reputation isn't great. Still, this is the right strategy -- though, success or failure is very much dependent on the execution, which isn't exactly Blockbuster's strong suit.

Filed Under: destinations, movie rentals, retail stores
Companies: blockbuster

Blockbuster Sued For Revealing Movie Rental Info To Facebook's Beacon

from the oops dept

There was plenty of people upset by Facebook's original "Beacon" advertising system, that automatically connected information on purchases to your "news feed" and broadcasted them to all your Facebook friends -- but now we'll find out if some of that activity was illegal. One of the initial participating companies was Blockbuster, who automatically fed information to Facebook about what movies you had rented. It turns out that there's a specific federal law against revealing info about movie rentals (who knew?). The Videotape Privacy Protection Act was apparently passed by Congress after Supreme Court Appointee Robert Bork's videotape rentals were revealed while he was being reviewed by Congress. While plenty of folks don't know about this law, you would think that it would be pretty near the top of the list of laws that a company like Blockbuster would be familiar with. Yet, it seems to not have occurred to anyone there that automatically feeding movie rental info to Facebook might violate that law. However, it appears someone else did recognize this and has now sued Blockbuster for violating the law. Not surprisingly, the plan is to turn this into a class action lawsuit. Thanks to the specifics of this particular law, it's unlikely that other Beacon participants violated this law, but it's only a matter of time until class action lawyers figure out some other law they probably violated.

Filed Under: advertising, beacon, privacy, video privacy protection act
Companies: blockbuster, facebook