Remember the days when Blockbuster Video was the one stop shop for all your home entertainment needs? The stores were all the rage 15 years ago but something happened. Technology evolved, and other ways of watching movies started to become more popular and because of that, the chain that’s been struggling in recent years might have to file for bankruptcy.
According to a report from AFP, Blockbuster is holding on by a thread after a massive plunge in their shares occurred on Wednesday. Stock in the video chain dropped by 30 percent after news spread that the store might be forced to declare bankruptcy. This isn’t a shock to anyone including the corporate owners, they’ve been forced to close hundreds of stores in recent years causing a major profit decline in a market they used to dominate.
During Blockbuster’s peak they had over 7,200 stores operating in the Americas, Europe, Asia and Australia. What happened? Netflix, illegal downloads, and pretty much anything that has to do with the internet came and took over. This is definitely a sign on the times for the brand that’s tried to compete with their Blockbuster Online program while still keeping its stores relevant.
Blockbuster posted a net loss of 434.9 million dollars in the fourth quarter on revenue of 1.08 billion dollars.
That’s a huge amount of money to lose especially in today’s economy, it’s no wonder they’re thinking about seeking bankruptcy protection. I’ve actually been holding off on the online DVD trend thinking I was doing something to help the cause, I guess my attempts have fallen on deaf ears.
Do you still shop at Blockbuster? What rental outlets do you use?