Printed from http://www.electronista.com

Blockbuster slips plans to close up to 960 stores by 2011

updated 01:10 pm EDT, Wed September 16, 2009

Hit by withering effect of mail, digital

Rental chain Blockbuster Video will close between 810 and 960 stores by the end of 2010, an SEC filing reveals. While putting a significant number of people out of work, and closing off some markets, the move is expected to add another $50 to $60 million to annual earnings before expenses like taxes and interest. The company has over 7,000 stores worldwide at present, scattered across Asia, Europe, the US and Australia.

Substituting somewhat for the lost stores will be a kiosk expansion. The company has plans to move from 497 kiosks now to 2,500 by the end of 2009, and some 10,000 by the middle of 2010. Blockbuster's main competition in this area is Redbox, a division of Coinstar that likewise rents DVDs through unattended machines.

One Barclays analyst, Douglas Anmuth, suggests that the store closures will likely benefit Netflix, the dominant American renter of video via mail and Internet streaming. Blockbuster has suffered in recent years as Netflix has grown, though the former has also been impacted by purely digital services. These include Hulu, YouTube and the iTunes Store, the last of which also sells movies and TV shows in addition to renting them. Digital remains a relatively minor contribution in terms of industry rental profits.



By Electronista Staff
toggle

Comments

  1. macuserssmelllikebum

    Fresh-Faced Recruit

    Joined: Dec 2006

    0

    Canada also

    Last time I checked, Canada wasn't a part of the US.

    Thanks for the shout out, MACNN!!

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Sponsor

toggle

Most Commented

 
toggle

Popular News