Could it get any worse for Blockbuster?
According to The Wrap, the video rental staple has hit yet another roadblock, and are reporting a net loss for the first quarter of the fiscal year, of just around $65.4 million, which is a far cry from this time last year, where the company reported a net profit of $27.7 million.
This turn was actually worse than expected, as analysts were expecting a net loss for the company equal to that of last year’s first quarter gain, just around 12 cents a share. Things are likely only going to get worse, with Netflix and Redbox becoming more and more of a force in this game we call video renting.
I know that personally, I haven’t been in a Blockbuster in at least a decade. I’ve learned to love local mom and pop rental shops, for not only their vast selection, but they also carry many classic films that Blockbuster just doesn’t feature. Also, with their high prices, and the advent of Netflix and Redbox, it seems like a matter of time before we see the demise of this titan of the business.
Also, it looks like people within the biz also see the writing on the wall for DVD and Blu-Ray sales.
According to Studio Briefing, DreamWorks Animation head, Jeffrey Katzenberg, has said that he expects the downturn in DVD and Blu-Ray sales to more than likely continue, and that this marks a ‘systematic’ change in the film industry.
He points changing consumer habits, particularly in how people tend to think of a $20 purchase more than they do others. Personally, I do tend to think of purchasing a new DVD or Blu-Ray disc as not only something that I feel is worthwhile, but also one that I tend to give a few moments to. However, I am one to shell out $50-80 for some of the bigger Criterion sets, so this is most likely something that I don’t really agree with. That said, the statistics are definitely there to show that sales are slowing, and with the continued financial troubles plaguing the country, I can’t help but think it can only get worse for the DVD industry.