So, with the announcement that the company had suffered $64.5 million in losses during the first quarter of the fiscal year, and a stock hit of 19% this past Friday, it looks like it may be a little too late to save the former video rental staple, Blockbuster.
Or at least that’s what the Motley Fool thinks.
The outlet posits the idea that, no matter how much the company claims to have ‘adequate liquidity,’ that it may very well be too late to save the legendary juggernaut. However, the company does have a few things going for it. Movie Gallery, the company’s biggest brick and mortar competitor recently announced that it was liquidating stores. The company kicked off their answer to Redbox, in the Blockbuster Express kiosks, and Netflix and Redbox striking deals with studios to delay releases for 28 days, it looks like it may not all be lost for the company.
However, I have to think that it won’t be the same Blockbuster that we’ve come to know and love. Stores, at least around where I’m living, are closing left and right, and with the recent massive losses fiscally, I can’t help but think that Blockbuster will exist, but solely in kiosks and online. With Redbox and Netflix solely not only becoming the go to spot for renting and online streaming, but also now the advent of things like on-demand and the recent announcement that films may be making their appearance at home the same day as in theaters, I just can’t imagine Blockbuster surviving the oncoming onslaught of up and coming video rental outlets and things like on-demand. Who knows thought? What do you think?
Source: Motley Fool
Abandoned Blockbuster photo courtesy of Flickr User RetailByRyan95