Blockbuster (video rental) dead?

[docm]

Sure sounds like they're going teats up....killed off by Netflix, and probably Hulu etc too.

Link....

Blockbuster Says Continued Operations are Questionable

Blockbuster may have been busted by Netflix

For many years Blockbuster video enjoyed great success in the movie rental business. Blockbuster is one of the largest movie rental chains in the country, but the company has found that its continued existence is far from guaranteed.

Blockbuster has announced that there is "substantial doubt" about its ability to continue as a going concern. A going concern is a qualification that refers to an auditor's assessment of a company's ability to continue operations reports MSNBC.

Blockbuster is struggling with profitability and viability in the face of the rising popularity of mail-order rental services like Netflix the company stated in a SEC disclosure. Blockbuster had previously disclosed that an auditor was likely to raise doubts about its long-term viability.

Blockbuster stated last week that its revolving and term loan agreement had been amended giving the company a $250 million revolving loan for financing maturing on September 30, 2010. The company thinks it will be able to close the financing around May 11, but states that the closing of the loan is not assured at this point.

Blockbuster says that even if the loan is funded it, "may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern."

Blockbuster shares fell 3 cents to 85 cents in trading after hours after closing at 88 cents reports MSNBC. In July of 2008 Blockbuster was considering the purchase of now defunct Circuit City.

 

[scottb50]

I don't think Netflix is in any better position either. Download a movie and watch is at your leisure is a lot simpler. As far a copying and distributing the downloads the actors and studios are affected a lot less then video stores or Wal*Mart. If a movie is not available until it has run in theaters and the download cost and convenience is competitive with bootlegging copies it seems a win win situation. The actors and studios get the exposure, which generates future sales of their movies and get paid for downloads.

Maybe the Post Office wouldn't need billions more to keep lugging around DVD's saving even more money.

 

[R1]

I think the worst thing is the job loss.....with the USPS, Blockbuster, DVD makers, etc.

Iirc, the P.O. was already operating on one day less per week, was it not? I don't think it's because it needs money,
I think it's because it needs mail, junkmail, and people living a little bit further apart. I wonder if the bursting of the housing
bubble is contributing to families and friends living together much more ubiquitously. I have heard some strange stories,
such as separated husbands and wifes living in the same house, each with their new lover! They were unable to get the house sold.

Anyway, it's probably the jobs.
Obama did express strong support for creating a space advisory committee and great support of space exploration, iirc. Maybe we can
soon see alot of new jobs in connection to serious space missions.

 

[nimbus]

That redbox scheme did Blockbuster in as well. Everyone I knew in phoenix AZ was using it over BB 7-8 times out of 10.