STOCK NETFLIX
STOCK NETFLIX
why is Blockbuster stock falling?
People should be buying this stock i think,Netflix and red box signed a deal for more movies and cheaper prices.BUT they only get movies 28 days after they come out.People want to see right away.Not wait 4 weeks.Block buster gets them that day,And if you join the 3 movies out at a time and return them to store for instant exchange you get 6 movies a week and it costs $1.50 a movie.After awhile people will notice no new titles and they will be going to Blockbuster...
Frugal,Why is it i cant get a copy of avatar and they had ove r100 copies,And my store is small i even called the big store and all there copies were out as well.this is a good sign
Blockbuster's business model is no longer a profitable business due to increased competition from the very firms you mentioned. The general consensus is that the new model, online rentals is much more profitable.
Consider this, how many times has Blockbuster instituted major changes into their model in recent years. They moved towards being a retail store that sold DVDs and games, then back to rental with the no fees and then increased their prescence in the rental sector again. What you need to consider is not only the customer standpoint, but the financial standpoint as well. The Blockbuster model has much higher operating costs and they've racked up huge operating loses.
Blockbuster is generally considered to be a dying company, they'll be run out of business either by online mail service or digital distribution. Consensus is they'll inevitably be bankrupt by year's end.
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