Blockbuster Bankruptcy Fears: Netflix and Coinstar blamed

By Peter Chubb - Mar 17, 2010

Blockbuster shares took a pounding today – dropping by as much as 30 percent, The company has said that they may have to file for Chapter 11 bankruptcy protection, which they blame Netflix and Coinstar for – saying that they have had a huge impact on its sales.

Netflix Inc. the DVD-by-mail company and Coinstar Inc., the DVD vending machines operator has been offering consumers another alternative to just Blockbuster, and it seems that they like the service offered by these two other companies.

According to Associated Press, Blockbuster may have to file for bankruptcy if they are unable to convince creditors to help reduce their debt. The DVD rental company has now closed about 1,300 stores and looks to shut down more.

Blockbuster has been trying hard to update its business; they have tried to compete with Coinstar – offering a video rental kiosk, and have also tried to copy Netflix with its DVD-mailing service. Blockbuster has even entered into the on-demand service with Tivo, which you can read more about here. However, none of this has helped and the company now owes $975 million.

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Also See: Blockbuster UK PS4, Xbox One orders online require lettter

  • What does blockbuster expect? They are like the Circuit City of video stores….too little too late/unwilling to see the obvious changes in technology. I got my xbox 360 in December 2008 and it had a Netflix ad on the box! I still have yet to hear anything about Blockbuster on the xbox 360 or the PS3. Plus I have been told several times by Blockbuster Employees at several local Blockbusters that you have to have a Credit Card to rent blu ray,x box 360,ps3 or wii games. Not a debit card,they said it must be a Credit Card. Why should I even bother going to Blockbuster anymore? I have no Credit Card and I will not get one just for a silly video store. I do have a Debit Card,but like they said… must be a credit card. So,to hell with you Blockbuster! Netflix will let me rent blurays if I chose too with my debit card! Anyways it would be nice to be able to rent games from a local store,but alas no Credit Card…..only a debit.