Blockbuster May Disappear By Next Year (Along With 9 Other Brands)
A popular video rental chain is one business predicted to be closing in 2011.
24/7 Wall St has released a list of 10 brands that it predicts may disappear in 2011 and among them is Blockbuster, once the leading player in the video rental business in the US. It says that Blockbuster’s business model of renting movies through physical locations has failed against rivals like NetFlix and the onslaught of cable and satellite video on demand. It has lost $65 million in the last quarter and is considering filing Chapter 11. Even though Blockbuster still has more than 6,000 stores, 24/7 Wall St believes that “its brick and-mortar business is dead” while its movie kiosks and Internet-delivered content business may survive.