Field Notes Inside an Integrated Communications Agency

It was announced today that troubled movie renter Blockbuster offered to buy troubled gadget seller Circuit City.

Never mind that analysts are scratching their heads on the economics, I’m intrigued that this signals a rapidly approaching new era of on-demand cocooning. This is just another sign of change that Blockbuster started twenty years ago.

I grew up in Raleigh with only a handful of big movie houses. One was The Cardinal Theatre. With two huge screens, great concessions and midnight showings every weekend, it was always packed. Sometime around the early 1990s, The Cardinal Theatre was replaced with…wait for it…a Blockbuster. It’s sadly ironic isn’t it? After all Faith Popcorn told us cocooning was the new wave back in the 90s.

My, how things progress. “The deal is a sign that Blockbuster doesn't have confidence in the retail video rental business anymore, says Shahid Khan, a partner at IBB Consulting. The movie rental store business is officially dead.”

The Blockbuster that replaced The Cardinal was closed a few years ago when the chain began facing online competition.

If designed correctly, the merger could result in a new customer experience for both companies. The new “CityBlock” or “CircuitBuster” has a chance to reinvent itself in a way that satisfies the entertainment buff in everyone. I just hope they understand that today’s retail environment HAS to be about the experience. Customers have easy online alternatives.