| Tuesday May 24th 2016

I’ve never been so pleased to watch a company (Blockbuster) die a slow, painful death

DaniellaRemember when they made a big deal about the “end of late fees,” and then it turned out if you were late they’d just charge you the price of the entire movie?

I’m going to watch that business plow into the side of the mountain with a big smile on my face.

Blockbuster was the national leader in the video rental business for nearly two decades. Now it is contemplating Chapter 11 to eliminate debt. The company lost $65 million last quarter. Its revenue continues to fall rapidly as firms such as Redbox and NetFlix siphon off its revenue. Blockbuster has more than 6,000 stores, so it is hard to imagine that the company could disappear. But, there is some precedent, even if it is on a smaller scale. Blockbuster rival Movie Gallery said in February that it would close all of its 2,400 U.S. stores. Blockbuster’s model of renting movies through physical locations has been destroyed by cable and satellite video on demand, DVDs via mail and dispensing machines. Blockbuster may still be around as a company that has movie kiosks and a small mail and Internet-delivered content business. But its brick and-mortar business is dead.


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