Could your friendly neighborhood Blockbuster be a relic of the past? Yes, according to Douglas A. McIntyre of 24/7 Wall St. In fact, Blockbuster is just one of 10 national brands that may disappear as soon as next year:
Blockbuster was the national leader in the video rental business for nearly two decades. Now it is contemplating Chapter 11 to eliminate debt. The company lost $65 million last quarter. Its revenue continues to fall rapidly as firms such as Redbox and NetFlix (Nasdaq: NFLX - News) siphon off its revenue. Blockbuster has more than 6,000 stores, so it is hard to imagine that the company could disappear. But, there is some precedent, even if it is on a smaller scale. Blockbuster rival Movie Gallery said in February that it would close all of its 2,400 U.S. stores. Blockbuster's model of renting movies through physical locations has been destroyed by cable and satellite video on demand, DVDs via mail and dispensing machines. Blockbuster may still be around as a company that has movie kiosks and a small mail and Internet-delivered content business. But its brick and-mortar business is dead.
Trivia for you: Back in 2000, when Netflix was young and losing money, Blockbuster had a chance to scoop the company for a mere $50 million. Instead, they decided to ink a 20-year deal with Enron on video-on-demand when the energy company was getting into telecom. Now, Netflix is a billion dollar company, and we all know how Enron ended!