Saturday, May 15, 2010

Will Blockbuster Survive 2010? Should it?

In 2009 I did a serious of posts on Blockbuster Inc. exploring the questions of whether or not it would and should survive 2009. I even threw out 8 recommendations for how Blockbuster might rebound.

I sent my thoughts to Blockbuster Video as well - but did not get a response.

But, it's almost mid-year 2010 and Blockbuster stores still are found on many corners across America, and perhaps they will survive...although I'm not seeing a financial recovery for this company that was previously the gate keeper of the home video rental market.

And I think I still find myself asking an even more basic question, of should they survive?

According to the Wall Street journal report yesterday, Blockbuster's low earnings continue to push their stock (BBI) to all time lows from their 2002 high of $30 per share. At closing yesterday, Blockbuster stock was 41 cents a share.

International Closures and Sell Off

Additionally, I keep on reading about Blockbuster selling off, or getting out of the market in non-US markets. Blockbuster apparently is attempting to sell it's European stores, after closing down all it's stores in Spain and Portugal, as well as Latin American countries like Peru. Blockbuster has gotten out of many of these countries for issues relating to piracy.

It's anticipated that Blockbuster UK will be sold off by June 2010.

I'm curious to see what happens in this sell off. If Blockbuster UK, or other European parts of the company are sold, what will these new owners do differently? Is the video rental store a thing of the past, or is there a chance to revive it, and Blockbuster Inc. is just doing it all wrong?

Honestly, I think there's some potential, but probably at this stage in the game, the video rental store might be fading away.

It's been a long time since I've rented from a Blockbuster, and have this strange feeling, it's been awhile for you as well. Then again, that might just be because you forgot how to use your DVD player.


Tom Hansen said...

I think Blockbuster will slowly close it's local stores and sell off it's assets that is weighing on Blockbuster's financial spreadsheet. I think it will slowly move to an online only format just like Netflex. Although Netflex is having some financial trouble too and looking for buyers. Maybe Red Box rental will be the future... Sad really for movie lovers like us.

Anonymous said...

please go out of business already!! i cant wait im going to throw a party when they go out. Im going to laugh sooo damn hard!!!!

They think because they are offering the blockbuster total access in store thier stocks are going to go up, no your stocks are only going to fall even more, nobody is going to pay $17.99 for blockbuster online when netfix offers it for $8.99. They are so behind everything, they do everything late and they try to play catch up with netfix and redbox. Netflix had online first and redbox had the kiosks first, and netflix was on xbox live and the playstation network first, now blockbuster is on driod and htc, nobody wants to watch a movie on thier phones blockbuster. blockbuster will expire before 2010 is up. Chapter 11 bankrupcy and chapter 7 liquidation!! Good bye BBV i will be happy you are gone!!

Unknown said...

"Anonymous" I hope they will. I had Netflix long time ago and I quit after they sent me the same broken DVD three times and no customer service. I do have the 17.99 plan and I can tell you I very happy with it. I can watch the Sci-Fi series that I wish and than go to the store and and exchange it for free for a movie that just came out. Also I prefer human contact than some software to tell me what should I watch. If Netflix moves to streaming that means more for Blockbuster. So stop hating BB if you're lazy to take your movie back on time and have to pay late fees.