Did the Internet kill Blockbuster?

Blockbuster has fought valiantly in recent years to defend itself against threats from online contenders such as Netflix, Hulu and YouTube. But now it seems as if the industry heavyweight is getting ready to throw in the proverbial towel.

Yes, after ruling the home video rental roost for over a decade, Blockbuster is reportedly preparing to file for bankruptcy – something which could happen as early as September.

Did the Internet kill Blockbuster?According to the LA Times, Blockbuster execs and senior debt holders recently held top-secret meetings about kicking off a “pre-planned” bankruptcy in mid-September.

“[The company] is hoping to use its time in Chapter 11 to restructure a crippling debt load of nearly $1 billion and escape leases on 500 or more of it 3,425 stores in the US,” the Times explained.

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STARR KESHET

Blockbuster has fought valiantly in recent years to defend itself against threats from online contenders such as Netflix, Hulu and YouTube. But now it seems as if the industry heavyweight is getting ready to throw in the proverbial towel.

Yes, after ruling the home video rental roost for over a decade, Blockbuster is reportedly preparing to file for bankruptcy – something which could happen as early as September.

Did the Internet kill Blockbuster?According to the LA Times, Blockbuster execs and senior debt holders recently held top-secret meetings about kicking off a “pre-planned” bankruptcy in mid-September.

“[The company] is hoping to use its time in Chapter 11 to restructure a crippling debt load of nearly $1 billion and escape leases on 500 or more of it 3,425 stores in the US,” the Times explained. Leer más “Did the Internet kill Blockbuster?”

Blockbuster: We Can Beat Bankruptcy and Netflix

Blockbuster is struggling. The Dallas-based rental chain owes close to $1 billion, and has repeatedly warned it might face liquidation if it can’t find new debt financing. Shares are now trading at 11 cents, and the company has been forced to delist from the New York Stock Exchange. It recently reported a higher than expected 20% drop in quarterly revenue, and it’s already missed deadlines for interest payments. Chapter 11 bankruptcy and Chapter 7 liquidation are on the table.

With so much headwind, what is the rental giant doing to survive in the digital age? We spoke with Kevin Lewis, head of Blockbuster’s digital strategy, to find out. In part one of our interview, Lewis spoke about competitors Netflix and Apple. Today, he talks candidly about Blockbuster’s financial future and the potential of its first foray into the app market.


BY Austin CarrThu Aug 19, 2010

Blockbuster's Kevin Lewis

Blockbuster is struggling. The Dallas-based rental chain owes close to $1 billion, and has repeatedly warned it might face liquidation if it can’t find new debt financing. Shares are now trading at 11 cents, and the company has been forced to delist from the New York Stock Exchange. It recently reported a higher than expected 20% drop in quarterly revenue, and it’s already missed deadlines for interest payments. Chapter 11 bankruptcy and Chapter 7 liquidation are on the table.

With so much headwind, what is the rental giant doing to survive in the digital age? We spoke with Kevin Lewis, head of Blockbuster’s digital strategy, to find out. In part one of our interview, Lewis spoke about competitors Netflix and Apple. Today, he talks candidly about Blockbuster’s financial future and the potential of its first foray into the app market. Leer más “Blockbuster: We Can Beat Bankruptcy and Netflix”