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 Blockbuster (who edits movies without notifying customers and refuses to carry many controversial films) has been a thorn in my paw for many a year, finally able to be removed by Netflix. But it turns out that Netflix isn't the only reason Blockbuster's market value dropped from $8.4b to under $700m in 12 years. Blockbuster, by keeping their head in the sand and adopting an MPAA-like resistance to innovation, wrote their own sentence. Additionally, they have to keep writing monthly rent checks for their thousands of stores, which eats a huge hole in the bottom line. In 2004 the company lost $1.24 billion. I bet that number is even higher in 2005. [B]lockbuster, which then accounted for nearly half of the studios' rental income from new movies, would have had the opportunity to rent out DVD releases before they went on sale to the general public. In return, the studios would receive 40 percent of the rental revenues that Blockbuster earned from DVDs, which was exactly the same percentage they received for VHS rentals... |
 
  
July 2004
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