Our history
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 $5.9 billion in 2003. During 2003, nearly 80 percent of BLOCKBUSTER's revenues were generated in the U.S., where the Company has tens of millions of member accounts. Blockbuster is one of the strongest entertainment brands in the world.
In less than 20 years, BLOCKBUSTER has grown from a single video rental store to approximately 8,900 company-operated and franchised stores throughout the United States, its territories and 25 other countries. BLOCKBUSTER's stores are a ubiquitous neighborhood feature 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 $8.9 billion movie and game rental market, the Company set its sights on increasing its share of the growing retail market. 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.
In 2003, the Company continued laying the groundwork for its participation in new opportunities like rental subscriptions, movie and game trading and store-in-store concepts. BLOCKBUSTER currently offers an in-store movie rental subscription program, the Blockbuster Freedom Pass, in approximately 25% of its stores. For a flat monthly fee, the Freedom Pass allows members to rent an unlimited supply of movies without due dates or extended viewing fees for as long as they subscribe to the pass. The Freedom Pass is scheduled to be rolled-out to all U.S. company-operated stores. The company also intends to launch an on-line rental subscription service this year. In 2005, BLOCKBUSTER plans to integrate the in-store and on-line subscription program providing members with increased flexibility, choice and convenience.
To expand its presence in the gaming marketplace, in 2002 Blockbuster purchased the U.K. based video game retailer Gamestation. Since the acquisition, Blockbuster has grown the chain from 64 to more than 150 stores. In the U.S., BLOCKBUSTER has boosted its games offering with the development of the GAME RUSH store-in-store concept. GAME RUSH locations share common entrances with BLOCKBUSTER stores, while offering customers the ability to rent, sell and buy new and used game software and hardware. During peak hours, GAME RUSH locations are staffed by specially trained game specialists. We think that around half our domestic stores could accommodate the concept, and we plan to rollout additional GAME RUSH store-in-stores as fast as prudently possible. The company also offers the Game Freedom Pass rental subscription program in all of its U.S. company-operated stores.
BLOCKBUSTER is also 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 alliances 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 and the Los Angeles Latino International Film Festival. In 2003, Hispanic Magazine recognized BLOCKBUSTER as one of the top 100 companies providing the most opportunities to Hispanics and in 2004 the Company was listed on Black Collegian's magazine list of top 100 employers.
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.
