Death of a market sector

due to scratched DVD’s, overpriced candy, and having to go to the physical store that has poor selection.   DVD/BluRay is likely doomed as well; except for a niche market.

Blockbuster

“DVD rentals and sales are experiencing a secular decline and pricing continues to fall as consumers use their computers and TV’s to start watching movies by instant download,” Noland writes. “This shift in consumer viewing likely will make kiosks less attractive over the long term as well. We remain concerned that Blockbuster is so over-leveraged, it may not be able to turn around and will end up in a debt restructuring.”

In short, Noland warns that “it may not be possible turn Blockbuster’s business around … even though Blockbuster is not yet in liquidity crunch, it could be if the poor results of the fourth fiscal quarter are repeated in 2010.”

Hollywood Video

Movie Gallery could close two-thirds of its stores, the Wall Street Journal reports. That would mean the shutdown of 1,800 of the company’s 2,700 stores, and likely result in the loss of thousands of jobs.

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