Potential Blockbuster Bankruptcy Another Reminder of Changed Movie Landscape

In case you missed it, this week Blockbuster, the once dominant movie rental chain, filed its 10K annual report with the SEC, in which it warned of "substantial doubt about our ability to continue as a going concern," continuing on to say it may seek relief through a bankruptcy filing. A filing has been rumored for a while now, but until its annual report, Blockbuster has resisted acknowledging this path.

Aside from whatever else can be said about Blockbuster in recent years - vast over-expansion, poor financial management, slowness to respond to new competitors like Netflix and Redbox - the company's potential bankruptcy is surely one of the most vivid reminders of how much the movie rental industry has changed in the last 10 years and how much it is yet to change in the next 10 years. Blockbuster will likely be remembered as a temporary player that drove wider movie access in the analog era, but then got crushed as rentals shifted in the digital era. The separate news this week of cable operators and studios beginning to vigorously promote VOD shows cable operators are determined not to be left behind, like Blockbuster has been, as the next chapter of movie rentals unfolds.

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Categories: Aggregators, Deals & Financings

Topics: Blockbuster