We spend a fair amount of time on this site chronicling the seemingly eternal downward spiral of Blockbuster Video. The nation’s largest video rental chain (at least for now) is increasingly perceived by consumers and investors alike as an anachronistic dinosaur from another time, destined for obsolescence and extinction as surely as the terrible lizards of the Mesozoic.
Despite all the gloom that seems to perpetually surround the BB name, there are a few who feel that some hope—however slight—may yet remain for the once mighty company.
The Motley Fool has put forth the following reasons why it might be a bit premature to write off Blockbuster completely:
- Coinstar’s Redbox kiosks and Netflix home-delivered flicks have eaten away at Blockbuster’s value proposition, but those two growing companies have recently agreed to release window delays. In short, Blockbuster will be the only of the three to nab a rental of Time Warner’s The Blind Side next month when it first comes out.
- Blockbuster began testing video game rentals by mail in Cleveland and Seattle last year. This is a market that Netflix has steadfastly avoided and one where the runaway champ — GameFly — is profitable with a mere 334,000 subscribers.
- Smaller rental chains have gone out of business, so Blockbuster is becoming the manned real-world flick renter of last resort.
- Blockbuster Express is the chain’s response to Redbox. The automated kiosks aren’t holding Blockbuster back financially, since machine-maker NCR is bankrolling the rollout.
What do you make of these arguments, Insiders? Will these or any other variables prevent the Blockbuster name from fossilization? Sound off in the comments.
(via The Motley Fool)