Almost missed this story great find PS. Yes, they must make changes and FAST!
Shares of Blockbuster stock continued to rise for a second day as investors appeared to buy into CEO Jim Keyes' statements that the venerable brand is shifting from a store-based business to multiplatform distribution, including kiosks and digital.
The Dallas-based company's stock March 5 was up nearly 5% to 42 cents per share in mid-morning trading, the day after shares skyrocketed nearly 33% when Keyes told CNBC that Blockbuster was moving away from total reliance on DVDs and transitioning to a blend of physical and electronic media.
This optimistic scenario ignores the increased competitive risk as consumers begin consuming more and more video content online, likely reducing the value of Netflix's unique DVD distribution capabilities over the long term, Schindler wrote in a note to clients.
Netflix shares were down slightly at $68.31 in mid-morning trading.
Originally Posted by keenan /forum/post/18274597
Another view of Blockbuster's future,
Blockbuster Won't Survive: CEO Says "Conservative Approach" Required For Digital
When asked different questions about Blockbuster's digital strategy, CEO Jim Keyes responded by saying things like, "these times demand a conservative approach," and that the company "will proceed cautiously as to how aggressive the company should be." For a company that has almost no digital offering today, those are some pretty scary statements. The last thing Blockbuster can afford to do is stay at the same slow pace for a digital offering roll-out that they are at now.
Six months after making a big PR splash that Blockbuster's platform was now available on TiVo, Blockbuster only has a total of 26 HD movies available and just under 1,000 movies all together.