As the good ship Blockbuster gracefully slips beneath the waves, customers are jumping overboard in huge numbers, according to Wedbush Morgan Securities analyst Michael Pachter. While predicting that Netflix will announce an increase of 1.6 million new subscribers during the first quarter of 2010 when it reports its Q1 financials this week, Pachter said that the growth will largely come at the expense of Blockbuster and other B&M stores. Said Pachter:
“Blockbuster is losing customers to Netflix and Redbox at an unprecedented rate, driving continued upside to Netflix’s financial performance,”
Pachter went on to predict that Netflix will close out 2010 with between 15.5 million to 16.3 million total subscribers, which is an increase of more than four million during the year. A recent series of lifeline deals tossed to Blockbuster by studios will not be enough to turn the tide, says Pachter.
A show of hands, if you please, Insiders. How many of you pity once-mighty Blockbuster, and how many feel that the stumbling giant has earned its fate? Make your opinions known in the comments.
(via Home Media Magazine)