Kate Langenburg/A&E Groove
Have you been to or driven by a Blockbuster video store lately? I don’t know about you, but I’ve been noticing the ‘SALE’ or ‘DVDS AS LOW AS $2.99’ signs in the windows. Perhaps online movie renting services are finally catching up with them?
As a matter of fact, the movie superstore is actually thinking about filing for bankruptcy. According to USA Today, Blockbuster ended 2009 with nearly $1 billion in debt. That’s quite a bit of debt, guys. On April 1 of this year, the company will have to make an interest payment, but who knows if that will happen.
With the rise of movie rental sites on the internet, like Netflix and Redbox, it’s no big surprise that Blockbuster is having some problems keeping up. A main issue they face is their pricing policies. To rent one video from a Blockbuster store costs the consumer nearly $5, while a one month subscription with an unlimited amount of DVD rentals from Netflix starts at $8.99.
Also, internet movie rental sites have become so popular that many post offices now have separate mail drop boxes to accommodate just the DVDs coming and going by mail. Even though Blockbuster also offers these services, it may be too late for them to catch up.
The digital age is upon us, and if you can’t find a way to make a successful business venture in it, you’re out of the ballgame. As far as renting movies goes, check out this smartmoney.com article about the best movie rental options.
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