I love Netflix as much as the next gal, but it seems these online video rental and streaming services are really knocking a dent in the brick and mortar rental industry. It’s so bad that Blockbuster is fairly positive they won’t be able to stay in business anymore.
So, how do we know this? Apparently, Blockbuster sent in a U.S. Securities and Exchange Commission filing yesterday that shows the company doesn’t feel they can stay in business. Their financial situation seems to be pretty dire, as they’re considering closing up shop.
Even though Blockbuster received a $250 million refinancing loan last week, they are still not sure if the transaction can be completed on May 11th as they may not qualify. A combination of online rentals, online streaming and the economy are believed to be the reason behind Blockbuster’s downturn.