Digital Home Thoughts: Bye Bye Blockbuster?

"Although Blockbuster tried everything it could to create a compelling reason for us to use the service, the company could not overcome its downfall. For years, it was hated by those people who saw it as a monolithic organization that enjoyed charging exorbitant late fees and had little or no care of what the customers wanted most. So when Netflix offered an entirely new service, the dynamics of the industry was inexorably changed, and Blockbuster was left playing catch up. According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close. But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership."

This was a hard news item to post on because Blockbuster has just been a staple in our lives for a very large number of years. But due to a, what overall appears to be, a lack of focus, Blockbuster is absolutely suffering. Store closures, lower earnings, losses all around just don't bode well for this media icon. It is not completely out yet, but it is more clear now than ever that they need to do something drastic, something completely innovative, in order to restore the glory days. Hmm, maybe team up with cable companies to help power their pay-per-view?