Blockbuster, Tivo In Video On Demand Deal - Prime Time Or Re-run?

Blockbuster and TiVo announced a new partnership

The move expands TiVo's current video on demand (VOD) offerings that already include Amazon's Unboxed and Netflix's streaming services. More importantly, it gives Blockbuster a new outlet for its fledging service which has been fighting a losing battle with Netflix for years. Blockbuster may be playing catch-up, and TiVo may be working to add another layer to its lineup, but really what we're seeing is another move in the customer-retention game. When it comes right down to it, it's all about customer service.

Amazon has been at the forefront for years in giving its customers what they want, sometimes before they even know they want it. I was recently surprised by an email informing me of a refund to my account, because a DVD I pre-ordered dropped in price between the time of my purchase and the release date. Although I was aware of this policy, it never dawned on me to check-up on the prices. Still with that one email (and credit), you can guess which company I'll think of first the next time I need to make a purchase.

Netflix and TiVo have also continuously looked for ways to keep their customers happy, whether by offering different subscription options, continuously searching for new business avenues and partnerships, or increasing the value of the services they've already sold.

Blockbuster needed to do something to keep up with its competitors or face losing more customers, but what does it bring to the table that will attract any new ones to cross over? Chances are that anyone with a TiVo who is interested in VOD has probably already subscribed to one of the services available through their DVR and will need some incentive to change.

TiVo, which has been aggressively (and somewhat creatively) looking for new revenue outlets from both content providers and subscribers, really doesn't have too much to lose with this latest partnership. It is able to keep its current customer base, possibly gain a few new users who have stayed loyal to Blockbuster, and will expand its offerings across the board to everyone.

At the end of it all, however, unless TiVo continues to pursue new and unique opportunities for its viewers, and Blockbuster starts looking for more original and distinctive features to offer its members, I predict this new announcement will merely be a blip in the history of both companies.