There are some indications that the once popular Blockbuster may have to close down since it now appears that the company is unable to compete in a changing market place. The first indications that Blockbuster was getting into trouble was when Netflix started to cut their pricing, a move that Blockbuster had trouble matching. In an age where convenience counted, running around returning DVD rentals had meet its match by the convenience offered by Netflix of home delivery.
But was this alone the cause of Blockbusters demise. Or was it just poor business decisions?
The death knell may be ringing for Blockbuster. Today the video-rental giant admitted that if it cannot complete the financing deals that it is currently working on, there is a good chance the company may be forced to shut its doors. While the company last week said it was in the process of getting a $250 million revolving loan from creditors, that may be in jeopardy.
Why? The loan apparently has some conditions to it, and Blockbuster is now not sure it can meet them. Even worse, whether the loan goes through are not, it is not even sure that would be enough to save the company.
I became a Netflix convert about four years ago. Not having to go to our local blockbuster, standing in line waiting to rent and having to return the movie was enough to convince me to make the switch. Netflix has been a reliable and inexpensive way to rent movies for myself and my family.
But what about you? Do you still rent movies at Blockbuster or other rental company or have you switched to Netflix?