This week came another sign of how technology can put you IN THE BLACK or in the red. Video rental company BlockBuster is leaking blood and is filing for Chapter 11 bankruptcy. This means they will be relieved of about $90million worth of debt while still operating business as usual;well not quite. They have to figure out a plan to not become another statistic, so expect somemore stores to close in your neighborhood. I know I cant wait until another one closes around here, they have everything on sale. You cant get deals like this during holiday shopping. I once saw the television and video rack with price tags on them. Im just laying low in the bushes waiting to poucne. You can thank those great sales on Netflix and Redbox. Netflix started in ’99 and has grown with a business model of low overhead expenses (buildings,employees) and distributing thru mail and the internet. With their deal with Apple for apps and video content for the AppleTV; Netflix isnt trying to take its foot off they neck. Not all of the credit can go to Netflix. RedBook has been on BlockBusters heels for some time. The company was started by McDonalds in 2005 and Coinstar purchased a 47% share. In 2009 Coinstar bought McDonalds remaing stake in Redbox and became full owner. There are now over 25,000 RedBox kiosk set up around 7-11’s and grocery stores. Blockbuster first entered the video renting business in 1985 but couldnt change with the times. Even though they added digital content and kiosks to their arsenal; it may be a little too late for them. They have one knee on the ground and dont know how many fingers the ref is holding up. 7..8..9..
