Blockbuster Shutting Stores and Taking on Netflix and Redbox
Blockbuster has not made an announcement about this, but they may as well since they filed
this 8-K yesterday with the Securities and Exchange Commission.
Blockbuster will close more stores than expected, and shift its business to accommodate 21st Century video watchers.
Larger stores are going bye-bye (really, how much floor space do you need to showcase videos?) and smaller urban concepts are coming in.
Blockbuster will take on NetFlix by growing its order-online-receive-in-the-mail model. It will replace real estate leases by placing vending kiosks in stores and other locations (like RedBox does). And it will offer videos on demand through cable providers and on the Internet.
Could this mean the ultimate end of bricks and mortar for Blockbuster? It sure sounds like it, as it discusses the expense involved in its operations.
Does it mean you’ll eventually get your cup of Starbucks from a vending machine instead of a human being? That’s another story for another day. But if a Blockbuster can disappear from your local shopping center, a Starbucks could leave, too.
