Blockbuster Heading for the Dustbins of History?
Massive layoffs are in the cards at Blockbuster, as revenue slid almost 6 percent in the 3rd quarter, stock prices are down to an anemic $5.06, and 526 stores have been closed in the last year. It appears that Netflix has not only put a chink in Blockbuster's armor but given it a flesh eating virus.
Blockbuster managed to put pressure on Netflix with lower prices, but all the focus on destroying the pioneer of DVD rentals via mail has taken an even worse toll on Blockbuster.
Consumer familiarity with Netflix and its streaming films have proven too much for Blockbuster to battle. Blockbuster chairman Jim Keyes has even admitted that the focus on Netflix has damaged the company. He has decided to move the focus of the company to just increasing overall membership but it might be too late. Like the traditional print media outlets barely scraping by in this new online economy, Blockbuster may be staring death in the face.
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