Embattled rental giant Blockbuster plans to close up to 960 stores, or about 20% of its locations, by the end of next year. The decision was made after a company-wide analysis found that 18 percent of Blockbuster’s stores fail to turn a profit.
This is both good and bad news for Redbox. While hundreds of brick-and-mortar Blockbuster stores will be closing over the next twelve months, the company’s plans for a major expansion of their kiosk business remain in place. By the middle of 2010, Blockbuster plans to have 10,000 kiosks in place, outnumbering traditional stores for the first time.
With fewer retail locations, but a vastly increased number of movie distribution points, will Blockbuster be getting more of your video rental dollars in the coming year?