Bye bye Blockbuster

[Pain]

IF you have a membership at Blockbuster, I'd advise canceling it and getting a netflix account.

http://mediamemo.allthingsd.com/200...per-than-a-late-fee/?reflink=ATD_yahoo_ticker

The movie rental business is supposed to be recession-proof. That was true for Netflix (NFLX), which posted great results at the end of 2008 and said this year would be even better.

But that hasn’t panned out for Blockbuster (BBI), which is reportedly mulling a Chapter 11 bankruptcy protection filing. No confirmation from the company yet, but investors aren’t waiting around to find out: BBI shares are now less than a quarter a piece. At the beginning of the day they traded at 96 cents. UPDATE: Blockbuster confirms it has hired law firm Kirkland & Ellis “to advise it with respect to its ongoing financing and capital raising initiatives” but tells Reuters that it can self-fund its debt through the rest of the year and that it “does not intend to file for bankruptcy.”

A little less than a year ago, you may recall, Blockbuster was trying to buy Circuit City for about $1 billion or so. But investors couldn’t see the appeal of mashing a struggling retailer with a struggling video rental company, and the deal fell through. Circuit City is currently in liquidation.

 

[Samoan-Z]

..... they had to opportunity to purchase, Curcuit City and merge of liquidate it for profit and didn't? ...

 

[Tech]

 

[Robcardu]

werd, i havent rent'd a movie in ages.

 

[pegasus]

..... they had to opportunity to purchase, Curcuit City and merge of liquidate it for profit and didn't? ...

merging with circuit city wouldn't have helped them, cause they both have bad business models, circuit city went bankrupt months ago. There whole business model is out of date hence why its going under.

 

[Kanav]

^ word

if your company cant evolve with the market, then you should go under and have someone with a better business model take your place.

 

[Line]

My college roommate called this 2-3 years ago, saying that, even if Blockbuster switched to an online model to supplement to their stores, they'd end up closing the stores. Having already lost the mail-order battle with NetFlix, this was only a matter of time.

 

[pegasus]

companies that rely on DVD's etc will also go out of business in the coming years. People will soon be going kiosks where they can plug in their USB devices and download movies which will self destruct after a set amount of time.

http://www.sun.com/aboutsun/media/presskits/2008-0414/NAB08_brochure.pdf