Blockbusted: The Rise and Fall of Blockbuster
source: http://www.theatlanticwire.com/opinions/view/opinion/Blockbusted-The-Rise-and-Fall-of-a-Vide...
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- Future_America
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Buried under a billion dollars of debt, Blockbuster Inc. filed for Chapter 11 bankruptcy. The video rental giant's demise has been a long time coming (and some think it will never recover).
"Blockbuster has been losing money and market share for years as Netflix, Redbox and other services gained popularity. Netflix subscribers have grown from 1 million in 2002 to 15 million in 2010. Redbox, meanwhile, operated 26,900 kiosks as of the end of June. Wedbush Securities analyst Michael Pachter predicts that number will exceed 28,000 by the end of September. In response, Blockbuster ended late fees and started online and kiosk services of its own. But it was unable to keep its debt in check. Blockbuster, based in Dallas, earlier this year said it would close hundreds of stores and said it was struggling with liquidity problems. It had warned investors it might file for bankruptcy protection and was delisted in early July by the New York Stock Exchange."
"Blockbuster has been losing money and market share for years as Netflix, Redbox and other services gained popularity. Netflix subscribers have grown from 1 million in 2002 to 15 million in 2010. Redbox, meanwhile, operated 26,900 kiosks as of the end of June. Wedbush Securities analyst Michael Pachter predicts that number will exceed 28,000 by the end of September. In response, Blockbuster ended late fees and started online and kiosk services of its own. But it was unable to keep its debt in check. Blockbuster, based in Dallas, earlier this year said it would close hundreds of stores and said it was struggling with liquidity problems. It had warned investors it might file for bankruptcy protection and was delisted in early July by the New York Stock Exchange."
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- groups:
- Movies, Film, Entertainment News, Movie News
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- tags:
- Movies, Netflix, Blockbuster, Redbox
