Background
Blockbuster Inc. (NYSE: BBI), founded in Dallas, Texas, in 1985
is one of the world's leading providers of videos, DVDs and video
games, with worldwide revenues topping $5.5 billion in 2002. During
2002, nearly 80 percent of Blockbuster’s revenues were generated
in the U.S., where the Company has 48 million member accounts.
According to research group Burke, Inc., the Blockbuster brand
enjoys nearly 100 percent recognition among active movie renters
in the United States. This, combined with market leadership, makes
Blockbuster one of the strongest entertainment brands in the country.
In
less than 20 years, Blockbuster has grown from a single video
rental store to more than 8,500 company-operated and franchised
stores throughout the United States, its territories and 28 other
countries. Blockbuster’s U.S. stores are a ubiquitous neighborhood
feature, and are located within a 10-minute drive of an estimated
64 percent of the U.S. population. Attracting more than three
million visitors on average each day, company-operated stores
are open 365 days a year from 10 a.m. to midnight. Merchandise
selection, quantity and formats are customized at the store level
to meet the needs and preferences of local customers.
In
2002, Blockbuster announced its mission to become the complete
source for movies and games – rental and retail. Already
the leader in the $8.5 billion movie and game rental market, the
Company set its sights on increasing its share of the retail market,
which industry analysts project will grow to more than $30 billion
by 2006. As part of the Company’s increased focus on retail,
it introduced innovative programs and expanded its in-store selection
of movies and gaming equipment, including hardware, software and
accessories.
Blockbuster
is committed to strengthening the communities it serves. The Company’s
outreach programs and partnerships are designed to deliver measurable,
positive results -- on both national and local levels. Major national
initiatives include partnerships with the Boys & Girls Clubs
of America and the Children’s Miracle Network. Blockbuster
also supports local schools with its “Good Grades, Free
Rentals” program, providing free movie and game rentals
to children, grades 1-8, who maintain A and B averages.
Blockbuster
has an active diversity and intercultural focus, supporting several
national organizations including the NAACP, LULAC, GLAAD and the
National Urban League. For several years, Blockbuster has maintained
premier sponsorships of preeminent minority film festivals including
the American Black Film Festival (formerly the Acapulco Black
Film Festival) and the Los Angeles Latino International Film Festival.
In 2002, Hispanic Magazine recognized Blockbuster as one of the
top 100 companies providing the most opportunities to Hispanics.
Blockbuster
is a publicly-traded subsidiary of Viacom Inc. (NYSE:VIA, VIA.B),
a leading global media company, with preeminent positions in broadcast
and cable television, radio, outdoor advertising and online.
In-Store
Offerings
BLOCKBUSTER stores carry a broad selection of movie titles for
rent, from the hottest new releases to a library of older titles.
Blockbuster also is the leading renter of DVD, with the majority
of the company's stores carrying hundreds of DVD units.
Blockbuster
continues to explore ways to generate incremental profit through
its store network. In September 2000, the company began marketing
DIRECTV System equipment in approximately 3,800 of its U.S. stores.
Through the success of this alliance, Blockbuster co-branded DIRECTV's
pay-per-view movie service in June 2001, establishing the BLOCKBUSTER
brand in the pay-per-view segment of the home entertainment industry
for the first time.
Distribution
Center
In 1998, Blockbuster opened a state-of-the-art distribution center
in McKinney, Texas, just north of the company's Dallas headquarters.
The 850,000 square-foot facility supports all company-operated
stores in the United States.
updated May 2002
Thanks
for making BLOCKBUSTER® the world's leading renter of videos,
DVDs and video games! |