Blockbuster Files for Chaper 11

Well I guess Netflix and Redbox have finally brought them low.

The prepackaged bankruptcy case, in the works since the spring, marks the end of an era that Blockbuster and its gold-and-blue torn ticket logo helped establish. Americans used to troop to video stores on Friday for the latest movies. Now, they're skipping Blockbuster and watching movies from DVD-by-mail services like Netflix Inc., cable video on demand and Redbox vending machines.

It might come out of bankruptcy by just concentrating on main and a digital component. Unfortunately, the only think they have left is their brand. I think Netflix and Redbox will be way ahead of them and they will forever be playing catch-up. I mean Netflix is already a titan with like 15 million subscribers.They might even be cutting in on cable companies according to this:

A new report from Credit Suisse says almost 30% of Netflix subscribers aged 18-24 are using Netflix in lieu of cable or satellite TV. (17% of all users are skipping cable for Netflix.)

I mean without live sports cable has little to offer that demographic. In fact with ESPN3 I can see many people eventually skipping cable all together and going totally online for their TV viewing.