Blockbuster Closing Up Shop In The Near Future?
It looks as if Blockbuster will soon be going under. After the company's third quarter results were released Thursday which revealed a 5.7% revenue loss and a net loss of $35 million, Blockbuster chairman conceded that the battle with Netflix is over. He feels that the huge focus on competing with online vendor Netflix did more damage than good and rather than focus on Total Access membership which includes their online distribution service, the company would focus once again at total memberships.
This basically means that sooner or later, barring something drastic, the movie retailer will go under. There is no reason for consumers to flock back to brick-and-mortar stores with the ease of Netflix accessable from their homes and with Blockbuster closing down 526 stores in the past year and layoffs coming up to offset $45 million overhead costs, the proof seems to be staring us right in the face.
Via The Digital Home
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Posted by Justin Davey at November 2, 2007 6:23 PM