Blockbuster: Bankruptcy is a possibility

Well the writing has been on the wall for a long time now and it looks like the day has finally come. The Dallas Business Journal is reporting that Blockbuster has informed the Security and Exchange Commission that it may be filing for Chapter 11 bankruptcy protection soon if can not spark new cash flow to help with their debt.

For years now Blockbuster which ruled the movie rental world for so long has been struggling to compete with the growing sources for movie rentals. Leading the pack of course is Netflix offering DVDs in the mail with no late fee as well as providing movies on demand via watch now. Others such as RedBox which rents DVDs through Kiosks located in super markets, pharmacies, and even Walmarts for $1 a night. Both of these offer a more cost effective way to rent DVDs as well as providing a convenience over a busy Blockbuster store.

The other threat to Blockbusters dominance is the availability of movie rentals through Set Top Boxes from Vudu and the AppleTV as well other providing downloads to computers. With a trend towards all content purchases rentals moving to an online format, it is no suprise that Blockbuster will be filing. Over the years Blockbuster has made changes like offering online rentals like Netflix as well as other methods, but it appears that the competition has a strong hold on the market and others will soon be in the game with the new methods.

Original Source: Dallas Business Journal

I guess we should all take a trip back to a historic time...

Historic ‘Blockbuster’ Store Offers Glimpse Of How Movies Were Rented In The Past (Source: The Onion)