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Blockbuster said today that it may not be able to continue operations. With Netflix hogging market share and stealing some of Blockbuster’s share, Blockbuster had to disclose the warning in a SEC filing.

Blockbuster has a revolving loan refinancing that matures on 9-30-2010 worth $250 million. Blockbuster said today that it may be unable to pay back the loans and will have to liquidate.

I think that Blockbuster should go to an entirely online business. It could minimize its operating costs and be able to compete directly with Netflix. It does have some kind of deal when it comes to certain DVD releases to be only rented through Blockbuster. This could be a selling point for it to directly compete with Netflix.

Jeremy

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