Blockbuster to sell concert tickets

From the Associated Press:

    SAN FRANCISCO — Blockbuster Inc. will begin selling concert tickets at about 500 of its video rental stores, bolstering its effort to create a one-stop shop for entertainment.    

    Under a three-year agreement announced Tuesday, Blockbuster's stores next month will become the primary brick-and-mortar sales outlet for music concerts staged by promoter Live Nation Inc. in the United States.    

   Dallas-based Blockbuster will supplant a hodgepodge of department stores, supermarkets and other retailers that Live Nation had been relying upon as part of an unraveling partnership with Ticketmaster Entertainment Inc.

    Beverly Hills-based Live Nation is breaking away from Ticketmaster to build its own ticketing channel. Ticketmaster will continue to handle some of Live Nation's sales until contracts covering several concert venues expire.

    With most consumers buying their tickets online, Blockbuster is expected to account for less than 10 percent of the more than 10 million tickets that Live Nation anticipates selling in the United States next year.

    Still, the Live Nation relationship will provide Blockbuster with a new way to lure people into its stores as more consumers rent movies through DVD-by-mail vendors like Netflix Inc. or buy entertainment through Internet downloading services and “on-demand” features bundled into cable-television subscriptions.

    “This is another step in the right direction,” said James Keyes, Blockbuster's chief executive. “It helps reinforce what Blockbuster really is trying to do — provide the most convenient access to entertainment and media.”

    Keyes, a former CEO for 7-Eleven Inc., has been trying to lessen Blockbuster's dependence on in-store video rentals by emphasizing more sales of movies, games and DVD players. Last week, Blockbuster also expanded its digital business by unveiling a TV set-top box that stores video rentals piped over high-speed Internet connections.

    Now that it's hooking up with Live Nation, Blockbuster hopes to piggyback on the ticket sales to peddle more CDs and licensed merchandise connected to the featured performers. Blockbuster will also get a slice of the transaction fee charged on the ticket sales.

    Blockbuster's diversification has helped increase its store's sales so far this year, although the company is still losing money — a factor that has further depressed its long-slumping stock. Blockbuster dropped 17 cents Monday to close at $1.02.

    Live Nation is faring better. The company earned $105.8 million on revenue of $3.25 billion through the first nine months of this year. But its shares dropped $1.05, or 21.5 percent, to $3.84 on Monday amid a broad market swoon.

Comments

[mankvill]

hmm. Maybe if they don't service charge people 50% of the regular ticket price. we'll see.

[Glow]

Tim, I'm curious to read your take on this. Anything that promotes competition and lower service fees can't be a bad thing, can it?

[BacktoRockville]

I don't see how it'll lower prices dramatically. Like the story said, most people buy their tickets on-line. Live Nation will need a brick/mortar carrier after it splits with Ticketmaster. Blockbuster has loads of stores and it can also sell music/concert accessories, like CDs, DVDs, T-shirts ...

As for convenience fees and other add-ons: That's the next shoe to fall. Don't be surprised if they start "going away," like they did for the Eagles tour. But don't expect that to do much more than give you an honest final price of a ticket. You know: $125 will mean $125. But it'll be like getting the bill for a meal with the 20 percent tip included. See Lefsetz on that:
http://lefsetz.com/wordpress/index.php/archives/2008/11/11/all-in-ticketing/

[Steve]

Sounds great, but how much longer will Blockbuster be in business? I can buy 3 shares of stock for the price of a 2-day new release rental?

[what up]

interesting stock quote.

Here is to hoping HIGH DEF
DVD technology dies on the vine.

We have Direct TV,and the High "beam down" is great.

We have 2 high flat screens on the wall, but I will NOT be buying a high def player, although I will say we love the highdef sports games.

the point is...
How many times do THEY expect us to "fall for it". I mean, although the highdef DVD players have fallen in price, have you seen the prices of the disc 25-35 each..wtf?

So I hope we can skip the Highdefdisc part, HERE IS MY IDEA.

Have a RErecordable
"device/chip/disc/thingy" which, for a fee, we can take to Blockbuster, and
"grab" the movie, then we can attach the "thingy" to our computer drive which is plugged into the flat screens.

Most flat screens have multi inputs.. and switches. So, with the push of a button we can change from games/computer/internet/DVD player/etc/blah/blah/blah.

just an idea/hope.

I like high def...but all of our 78RPMs/8tracks/LPs/cassettes/DVDs take up enough space without adding highdef-DVDs to the pile.