Internet Killed the Video Store


Not exactly sure why this is news. Besides the people still working for Blockbuster, who didn't see this coming? This is one prediction that I think even Miss Cleo could've made.

An article in today's Atlanta Business Chronicle says that Blockbuster may seek bankruptcy protection if they can't generate enough cash flow to meet or restructure their debt obligations.

In the same way that "Video Killed the Radio Star", new technologies like redbox, Wal-Mart & Vudu, Netflix, and Video-On-Demand are killing the traditional brick and mortar video rental store.

Looking at Blockbuster's stock price (symbol BBI) it looks like the company has been in a long, slow decline since 2005. The stock is trading around $0.30 a share. This is definitely a stark contract to 8 years ago when it was trading at an all time high of $30.00.


Blockbuster, it's time to lay down and die or find a way to reinvent yourself. I think the people over at The Onion may have an idea on a new business model (check out the video).



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