An SEC filing has revealed the Blockbuster is closing almost a thousand of its stores by the end of 2010. Blockbuster is shuttering all locations that are not profitable, and may even close 275 to 300 additional stores that are subject to the company's "lease mitigation/termination efforts." The company hoped to bump profits from $10 million a year to $60 million.
The future for Blockbuster: Kiosks. The company believes Blockbuster kiosks are the means to profitability: By mid-2010, it hopes to have 10,000 kiosks available to compete with Redbox.
The forces of The Marketplace forcing the yellow and blue behemoth to close the doors of retail outlets is hardly surprising. Netflix is simply a better business model for consumers -- not only is it convenient, Netflix also offers a nearly limitless number of DVDs-- much more than your local Blockbuster could compete with. Of course, Blockbuster's online rental service is, by and large, the same as Netflix's, but Netflix started up more than ten years ago, and Blockbuster is relatively late to the party.
It's strange to me, actually, that Blockbuster has 6,000 or so stores still operating at profit. Who still goes to Blockbuster? Seriously, what's the draw? Terrible selection, having to deal with the employees of Blockbuster, and the inability to rent pornography! What's the draw?
Do you still use Blockbuster? If so, why?