Blockbuster Is On the Verge of Failing

Blockbuster was considered to be a company that really had a lot of swagger and tons of profit. It was a well known movie rental outfit in the entire world, but alas… Netflix came into existence and the number of customers at Blockbuster dropped significantly.

Over the past few years, Netflix has exponentially grown through a number of sneaky tactics – “By Mail” was the most notable among them. Blockbuster also tried to adapt Netflix’s “By-Mail” approach, but it didn’t work. The reason being: they got late in copying Netflix and by the time Blockbuster came around the “By-Mail” approach; Netflix already had built immense repo in the market. So no one wanted to go for Blockbuster anymore…

Regardless of the By Mail tactic, Netflix is way ahead of Blockbuster because we are offered the “Watch Instantly” option at Netflix.Com. Let’s skip a couple of 4th of Julys and take a look at the current condition of Blockbuster. The company is now hanging on to a straw and we can see a high degree of indebtedness there.

To make matters worse, the NY Stock Exchange delisted Blockbuster and the company is just a few steps away from bankruptcy. In these cases, most companies just declare bankruptcy and pack their bags but Blockbuster is playing the game for keeps.

For now, Blockbuster has opted for an employee layoff technique but financial experts believe that Blockbuster doesn’t stand a chance. We can’t say anything about the future of Blockbuster but just wait for 2 months and you will either hear good news or bad news…