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Print 71 comment(s) - last by callmeroy.. on Apr 30 at 10:41 AM

Blockbuster may have been busted by Netflix

For many years Blockbuster video enjoyed great success in the movie rental business. Blockbuster is one of the largest movie rental chains in the country, but the company has found that its continued existence is far from guaranteed.

Blockbuster has announced that there is "substantial doubt" about its ability to continue as a going concern. A going concern is a qualification that refers to an auditor's assessment of a company's ability to continue operations reports MSNBC.

Blockbuster is struggling with profitability and viability in the face of the rising popularity of mail-order rental services like Netflix the company stated in a SEC disclosure. Blockbuster had previously disclosed that an auditor was likely to raise doubts about its long-term viability.

Blockbuster stated last week that its revolving and term loan agreement had been amended giving the company a $250 million revolving loan for financing maturing on September 30, 2010. The company thinks it will be able to close the financing around May 11, but states that the closing of the loan is not assured at this point.

Blockbuster says that even if the loan is funded it, "may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern."

Blockbuster shares fell 3 cents to 85 cents in trading after hours after closing at 88 cents reports MSNBC. In July of 2008 Blockbuster was considering the purchase of now defunct Circuit City.  



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RE: screw Lackluster Video
By Reclaimer77 on 4/7/2009 4:47:50 PM , Rating: 2
Walk I don't think you understand how things work.

Blockbuster is a large business. They are not operating to put forth some conspiritorial Christian viewpoint, they are there to make money.

Large businesses get complaints by individuals, and usually, they act on them. This isn't about Blockbuster wielding "too much power" man, are you daft ? BlockBuster didn't decide to take certain titles off their shelves for the hell of it, they did it because some beancounter somewhere decided the complaints, if left unresolved, could result in a loss of net profits.

Remember, the greasy wheel always gets the oil. As long as the silent majority stays silent, the vocal minority will always wield more power.

Want an example ? There is a BBQ chain where I live called Sonny's.. not the best BBQ, but I digress. Every Halloween they decorate their stores with scary spiders and spooky ghosts hanging from the lights and rafters. Except last Halloween. Asking the waitress about it in passing, she informed me that the previous Halloween one child got terrified of the decoration. That childs parents complained to headquarters. And voila, just like that, no more Halloween decorations. Chain wide ! Because of ONE customers complaints !


RE: screw Lackluster Video
By Boze on 4/7/2009 6:28:28 PM , Rating: 2
Sounds more like Sonny's should have recommended therapy for the child and kept the Halloween decorations.

The majority should never be deprived of something because it angers or offends the minority...

For some damn reason, more and more people in the United States are starting to believe they have the right not to be offended... pretty damn reprehensible for a nation whose Founding Fathers were masters of inflammatory speech.


RE: screw Lackluster Video
By Reclaimer77 on 4/7/2009 6:37:22 PM , Rating: 2
You won't get an argument from me. But there it is. /shrug


RE: screw Lackluster Video
By walk2k on 4/7/2009 6:50:26 PM , Rating: 1
Sorry but it's you who doesn't understand "chilling effect" Look it up some time. It's unfortunately all too real.


RE: screw Lackluster Video
By Boze on 4/7/2009 7:05:20 PM , Rating: 2
Well I looked up "chilling effect".

And you're using it incorrectly.

From Wikipedia: (of course, I'm too lazy to consult a proper source)

quote:
A chilling effect is a term in law and communication which describes a situation where speech or conduct is suppressed by fear of penalization at the interests of an individual or group. It may prompt self-censorship and therefore hamper free speech. Since many attacks rely on libel law, the term libel chill is also often used.


What you were talking about has nothing to do with "chilling effect". Not carrying a movie because they believe it goes against their "family-friendly" policy is hardly a chilling effect.


RE: screw Lackluster Video
By walk2k on 4/7/2009 7:30:57 PM , Rating: 1
Yes it is. If BB or Walmart won't carry it, it won't get made, not by any major hollywood studio that's for sure.

That's a chilling effect. It's pretty simple.


RE: screw Lackluster Video
By C'DaleRider on 4/7/2009 8:26:16 PM , Rating: 2
It's the SQUEAKY wheel gets the grease, not the greasy wheel gets the oil.

A greasy wheel would essentially be silent...so would not direct any attention to itself.


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