More Head-scratching About Blockbuster-Circuit City

So I'm reading remarks that Blockbuster CEO Jim Keyes said to USA Today explaining the bid for Circuit City, and I can't help wondering what planet Keyes has been on.

Some stuff from the story:

The plan to blend entertainment hardware, software and service "is a game changer," Blockbuster CEO Jim Keyes says.

Really? A game changer? More than the iPod-iTunes combo? More than TiVo was? Blockbuster-Circuit City -- two struggling retailers who as far as I know have no R&D lab and little ability to innovate -- is going to do that?

"As a customer, if you have any experience with digital content, trying to load devices or watch movies on a PC, you're probably thinking: There's got to be a better way. We think we have an opportunity to break through the consumer confusion and frustration."

For the most part, you put the DVD into the slot on the PC and, voila, a movie plays. Or you click on a TV show on Hulu, or a song on iTunes, and it just plays. What problem does Keyes think he can solve? Oh -- right -- Blockbuster bought Movielink, the highly unsuccessful online movie site that's always been too hard to use.

He says things are moving fast in home video: For example, Apple's iTunes recently began to rent digitally downloaded videos. "We will be in (consumer electronics) on our own, or with Circuit City," Keyes says. "The combination simply allows us to accelerate" that plan.

Yes, Blockbuster is planning to sell a set-top box for movies, and just about every blogger out there is ridiculing it. The idea seem like too little, too late.

"The magic in the Apple store is bringing hardware, software and service all together," Keyes says. "They make it easy for the consumer."

Ah, and Keyes thinks Blockbuster and Circuit City can replicate the popularity of the Apple Stores? Does he understand that a big part of the attraction is the actual Apple products? That plus the coolness factor that makes people want to hang out there? Has anyone ever felt any coolness about a Blockbuster store? How about 7-Eleven, which Keyes used to run?

This sounds like a lot of bluster from someone who doesn't know the tech industry.

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