Blockbuster Inc. (Dallas) has reported a 6.3 percent increase in total revenues for its fourth quarter ended Dec. 31, 2004. For the full year, total revenues increased 2.4 percent.
“During 2004, Blockbuster invested in new customer propositions designed to improve our competitive position in the home entertainment marketplace and strengthen our future revenues and profits,” said chairman and ceo John Antioco. “We are especially delighted with the rapid growth of our online business, which, in just seven months, has built a base of more than 750,000 subscribers. Based on our initial success in this area, we are accelerating our investment in Blockbuster Online, with a goal of achieving more than 2 million subscribers by the first quarter of 2006.
“We are also very pleased with the early results of ‘No Late Fees.’ While this was a significant investment, our transactions are increasing and our active member counts are trending up for the first time in almost two years. We firmly believe that the elimination of extended viewing fees will help revitalize our core rental business.”
In 2004, Blockbuster said it invested approximately $140 million of capital expenditures and $120 million in operating costs to develop Blockbuster Online, Blockbuster Movie Pass, movie and game trading and game concepts.