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Blockbuster Files For Bankruptcy

Posted by Soulskill on from the ice-delivery-men-unimpressed dept.

Dallas-based Blockbuster Inc. filed for Chapter 11 bankruptcy protection yesterday, calling into question the futures of over 5,600 stores worldwide. The company will be evaluating each location on a case-by-case basis, and seeks to cut costs after reporting a $558 million net loss last year. Newsweek credits the company's slow adoption of new media distribution methods as a big reason for the company's decline. "... while Blockbuster discussed creating its own subscription service to rival Netflix, it wasn't until August 2004 that its online DVD rental program actually started in the US. And when, in 2004, Coinstar entered the market with its Redbox DVD kiosks, Blockbuster didn't begin installing similar devices until 2008." CNET suggests that "Leaders of pay TV services might be wise to start doing the business equivalent of digging foxholes and manning the battlements or the same thing could happen to them."

2 of 390 comments (clear)

  1. Bailout! by Anonymous Coward · · Score: -1, Troll

    Well Democrats, shall we bail these fools out too?

  2. Seems to me.... by Anonymous Coward · · Score: -1, Troll

    The company will be evaluating each location on a case-by-case basis, and seeks to cut costs after reporting a $558 million net loss last year.

    Seems to me they should have been doing that prior to filing bankruptcy. Bankruptcy isn't a start to anything.... Corporate America is definitely starting to look at it that way though.....

    Thank you to the current administration for that.