There's nothing Blockbuster
Blockbuster engages in the operation and franchising of entertainment-related stores in the United States and abroad. The company offers prerecorded videos and video games for in-store rental, in addition to other entertainment-related merchandise. It has 8,500 stores overall, as well as an online movie rental service.
Consumer spending for in-home viewing is projected to increase in the coming years. The video game industry is also prospering -- the launching of hardware consoles like Microsoft's
To add to these considerable woes, the year-to-date financial performance of the company has been shattered by sales decreases in both the rental and merchandise businesses. Also, revenue growth rates and same-store sales have been negative for quite some time now. With the recent upswing in the stock price, Blockbuster's news of reaching the goal of 2 million online subscribers appears to be discounted. Management is upbeat on "Total Access," a program designed to grow its online subscriber base at a faster rate. However, the benefit is likely to materialize only in the long term. In view of all the above factors, the stock price is expected to slide in the near future.
And now for something completely different. If you can't fast pitch, then you might try your hand at 27-Second Video Pitches. For a fun and insightful take on Blockbuster, have a look at the video below:
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