It came as no surprise to us that Blockbuster filed for chapter 11 bankruptcy today, which Jamie Pert discussed in an earlier post. One of the main reasons was due to continued competition from the likes of online services such as Netflix. Blockbuster does have some sort of rescue package in place, but they are in a race against time to pull the deal off.
Jamie discussed a little about the rescue plan, but can these investors really pull it off? Blockbuster along with the new investors certainly have their work cut out, and will take more than just a few ideas to bring it back from near-death.
Caroline Humer from the Post Chronicle has reported that Goldin Associates MD, David Pauker said that Blockbuster has to find a new format and fast before their business is too far-gone to save.
Not certain how Blockbuster will be able to keep trading now that TV and Movie streaming is the way to go, with devices such as Apple TV, PS3, Xbox 360 and the upcoming Google TV all having the streaming solution. Blockbuster needs to be able to tie themselves with a big brand in order to compete with those who I mentioned above.
Do you think that Blockbuster can be saved?