Blockbuster going down?

[Krakalakachkn]

Sounds like the once-powerful empire is going down the tubes

 

 

 

Blockbuster's credit may be no good in Hollywood anymore.

 

Major studios are looking to cut off credit for the DVD renter and retailer, which could potentially push the struggling company into bankruptcy.

 

Blockbuster disclosed the looming threat in its annual report, filed with the Securities and Exchange Commission on Tuesday.

 

"Given our liquidity limitations and uncertainty surrounding our ability to finance our obligations, we are currently in discussions with several of the large studios regarding the credit terms for our inventory purchases," the company said in its filing. "If the studios tighten their credit terms or if studios eliminate their provision of credit to us altogether, this could result in up-front cash commitments that we may be unable to sustain on a long-term basis."

 

Blockbuster then added that if the studios go through with their efforts to tighten credit terms and its financial situation doesn't improve, bankruptcy is a possibility.

 

"Should we not be able to generate sufficient cash flow from operations and should the studios tighten or eliminate credit terms," Blockbuster said, "we may determine that it is in the Company’s best interests to voluntarily seek relief through a pre-packaged, pre-arranged or other type of filing under Chapter 11 of the U.S. Bankruptcy Code."

 

During the quarter ended Dec. 31, Blockbuster's same-store revenue dropped 14.7% and it reported a net loss of $434.9 million.

 

Last year the company shut down 586 stores worldwide, including 353 in the U.S.

 

 

[aemonkristen]

Say it ain't so! Blockbuster is pretty much the only place I can go to get movies down here!  :'(

[Naeann]

Redbox rents movies for a dollar a day.  Netflix you can watch online, thru something with your tv, or have DVD's sent to you.  If I remember correctly Netflix is cheaper too.  Yeah, with blockbuster you can trade them at a store too but it costs more.

[Krakalakachkn]

Netflix is the way to go if you don't mind waiting a few days.  I absolutely love it.  The Red Box is almost always out of the good movies and almost always broken, otherwise it's awesome.

 

NEver liked blockbuster, always preferred hollywood video or a mom & pop store

[Naeann]

I love netflix.  I do three at a time and just watch one, send it off and watch the second one while waiting for the first one to be replaced and so on so forth.  It generally only takes two days to get here.

 

I'm currently watching seasons of Law and Order on the computer right now with it as well.  I love the watch instantly feature!!  I usually watch Heroes on there the day after it's aired.

[aemonkristen]

Problem is I can't get netflix here in Mexico and most of the mom and pop places are pirated dvds. I don't support piracy, so I usually end up buying a movie that looks interesting if I can't rent an original copy of it.

[NightfalconGTSR]

Hollywood Video is also going down. All of them around here in texas are closing. I am in love with netflix, using my laptop and a special remote for windows media center I can search and watch all the movies that netflix has and then watch them without leaving my couch. I've been catching up on all the classics Ive always wanted to watch and never had the chance. Its cheaper by a long shot and has a bigger selection of older movies. The closing of hollywood video is a great oppertunity to get some good deals on movies and video games as game crazy is also closing. But it does seem kind of sad, oh well progress will happen. BLockbuster was giving away their signs on craigslist, lol, If only I hade a crane the big one would be mine  ;D