Blockbuster In Trouble

[Demon_Skeith]

An SEC filing has revealed the Blockbuster is closing almost a thousand of its stores by the end of 2010. Blockbuster is shuttering all locations that are not profitable, and may even close 275 to 300 additional stores that are subject to the company's "lease mitigation/termination efforts." The company hoped to bump profits from $10 million a year to $60 million.

The future for Blockbuster: Kiosks. The company believes Blockbuster kiosks are the means to profitability: By mid-2010, it hopes to have 10,000 kiosks available to compete with Redbox.

The forces of The Marketplace forcing the yellow and blue behemoth to close the doors of retail outlets is hardly surprising. Netflix is simply a better business model for consumers -- not only is it convenient, Netflix also offers a nearly limitless number of DVDs-- much more than your local Blockbuster could compete with. Of course, Blockbuster's online rental service is, by and large, the same as Netflix's, but Netflix started up more than ten years ago, and Blockbuster is relatively late to the party.

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[Seaofclouds]

I'm not surprised by this at all. I've never used the RedBox because I don't trust them and I don't use NetFlix because I don't want to have a monthly fee of any kind, but I knew that it would only be a matter of time before actual video rental stores would be put out of business.

 

[froggyboy604]

I think the prices for new rentals cost too much at rental shops. I might as well go to the discount section and buy old DVDs movies I have not seen yet for $5-10 dollars, discount theatures, borrow a DVD from the library, friends, watch movies on TV, etc. Movie channels are not that expensive either if you bundle it with other channels, or cable internet.

 

[hcfwesker]

Yeah, their new release prices are ridiculous. Even old DVD's cost $4, but you get them for a week. Big Whoop.

I hate blockbuster, but they are better than movie gallery.