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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 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.


“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

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