Blockbuster

Linda · **Posted:** Thu Apr 16, 2009 12:42 pm

Quote:

Blockbuster says it may not be able to continue

Movie rental company Blockbuster Inc. said Monday the risk that it may not complete financing deals raises “substantial doubt” about its ability to continue as a going concern.

Dallas-based Blockbuster, which has struggled amid the rising popularity of DVD-by-mail services like Netflix, disclosed the warning in a filing with the Securities and Exchange Commission. The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.

A going-concern qualification refers to an auditor’s assessment of a company’s ability to continue to operate for the foreseeable future.

Last week, Blockbuster said its revolving and term loan agreement was amended, giving it a $250 million revolving loan refinancing that matures on Sept. 30, 2010. Lenders including JPMorgan also agreed to waive any default that could result if auditors attached a “going concern” classification.

But on Monday, the company said its lenders’ obligation to fund the $250 million credit facility is subject to meeting certain conditions, and there can be no assurances that these conditions will be met.

Even if the loan is funded, the company said it “may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern.”

Blockbuster said it believes that it will be in a position to close the amended credit facility by around May 11, though “there can be no assurance regarding these matters.”

Shares fell 3 cents to 85 cents in after-hours trading, having closed earlier at 88 cents.

http://www.msnbc.msn.com/id/30076153

Brotoro · 12 Apr 2008

"Oh...and we are a dinosaur concept in the modern age," Blockbuster officials failed to note.

Mr Smith · 19 Apr 2007

You've got to wonder why Blockbuster haven't already moved into the DVD-by-mail market...

JohnG · 03 Aug 2006

They've tried it but you can't beat Netflix.

At this time we have only 1 Blockbuster in our area ( a large area). We once had 3. The one closest to me closed a long time ago.

Glenn S. · 30 Oct 2006

Mr Smith wrote:

You've got to wonder why Blockbuster haven't already moved into the DVD-by-mail market...

I think they did, though it might have been too little too late.

Ironically, I went into a Blockbuster store a couple of weekends ago for the first time in months and was actually quite pleased with the experience. They now have lower prices for rentals that are returned the next day, which works fine for me as we usually only watch movies on the weekends anyway.

TS Garp · **Joined:** 29 Dec 2006 **Posts:** 32252 **Location:** MN

My wife and I use on demand for movies. I use Netflix for tv shows. My son uses Gamefly for video games.
It would be nice to have them around, but realistically I never use them.

JohnG · 03 Aug 2006

On Demand has gotten better around here. Because I have Verizon Fios with HD, I can watch a new movie in HD with 5.1 sound. So the need for a Blockbuster isn't the same.

Mr Smith · 19 Apr 2007

We've been in our current house nearly five years and haven't rented a single DVD in all that time. The last DVD I actually remember renting was Panic Room.

AMW · **Joined:** 26 Sep 2006 **Posts:** 4543

I haven't bothered with Blockbuster ever since Wayne Huizenga sold off the Florida Marlins (the players, not the team) after winning the World Series and not getting a free stadium from the city of Miami.

DanO · 30 Jul 2006

Blockbuster has been in the rent-by-mail business for some time now. However they recently cut back on the benefits of that service. For instance, my plan allowed me to return the mailers to a Blockbuster store and grab a free DVD for each return - I would then ALSO get the next title in my queue mailed to me, so it would basically be exhange 1 - get 2. That was really nice, but now they've eliminated that benefit so you get EITHER the in-store exchange OR the mailed-from-queue exchange. Personally, I think that's gonna kill 'em and send many to Netflix.

I personally have no interest in downloading films and watching them on a comuter screen either.

David Baker · 31 Oct 2006

The last movie I remember renting was a kiddie movie called "The Pebble & the Penguin," just so I could record the Sheena Easton song from it. Probably 8-10 years ago.

DanO · 30 Jul 2006

A question for those of you who haven't rented a movie in years:

What do you do - download, buy everything you want to see, watch pay-per-view and/or cable or something else?

TS Garp · **Joined:** 29 Dec 2006 **Posts:** 32252 **Location:** MN

DanO wrote:

A question for those of you who haven't rented a movie in years:

What do you do - download, buy everything you want to see, watch pay-per-view and/or cable or something else?

Really cool action movie stuff - in the theater
good dramas - pay per view or netflix
everything else - wait 18 months to see it on Encore as a part of my monthly cable subscription. Encore is owned by Starz, all you have to do is wait an extra 6 months to see it.

AMW · **Joined:** 26 Sep 2006 **Posts:** 4543

DanO wrote:

A question for those of you who haven't rented a movie in years:

What do you do - download, buy everything you want to see, watch pay-per-view and/or cable or something else?

Everything I watch is on a DVD that I bought. I barely have enough time (or inclination) to watch much more than a disc (or so) a week.

Another reason I got out of the habit of renting movies in the past few years is because movies basically suck these days.

Jimbo · 19 Jul 2006

I do go to the movies a lot. See two or three movies in an average week.

I buy a fair number of movies on DVDs, mostly animation, comedies, sci-fi, old classics--movies that I could watch many times over, if I ever have the time.

I also get a whole slew of movie channels on cable, although I've never once ordered a movie on demand.

alantig · 20 Sep 2006

Blockbuster lost me a long time ago for a lot of reasons. The inability to get something on release date (show up at opening, 20 copies of a new release gone). People renting games and keeping them for weeks.

But the straw that broke the camel's back was their pinheaded holier-than-thou stance when the NC-17 rating came out. They made a big fuss about being family-friendly, and touted how they weren't going to carry NC-17 films because they didn't want to expose children to that stuff, blah blah blah (we'll ignore the fact they kept R-rated slasher flicks). "Showgirls" - which was released unrated - was out on video at that time, and the producers or directors decided they wanted to be the first to have the NC-17 rating. So they resubmitted the UNCHANGED movie to the MPAA, got the expected NC-17 and re-released the video with the new rating. And Blockbuster, true to their moral word, refused to carry it because of the NC-17.

They kept the unrated version on the shelves, though.

They got my chopped-up membership card about a week later.

Mr Smith · 19 Apr 2007

DanO wrote:

A question for those of you who haven't rented a movie in years:

What do you do - download, buy everything you want to see, watch pay-per-view and/or cable or something else?

I barely have time to watch the TV I want to see, so I almost never watch movies anymore- unless it's something that I really want to see that I've either bought, or borrowed from a friend. I even try to catch as much TV as I can online, while I'm working, so I have more free time.

JohnG · 03 Aug 2006

I'm a big fan of Netflix because they rent Blu-rays. I love to watch movies on my Home Theater. You can't beat a big screen and big speakers.

Also watch alot of TV on the Verizon FIOS network in HD. Don't do much VOD at this point but it is available.

Don't see movies at the theater much anymore. Too much of a hassle and the cost (if you take the family) is getting expensive. Much cheaper to have movie night at home.

Rick A · 23 Jul 2006

Like JohnG I have the FIOS HD but I go to the library for checkouts and visit my indie used DVD bin ($4.99) for most movies which I have built a great library over the years.

If I can't wait, I snag a movie at the local Target on release week. As for Blockbuster, I did the same as AMW in protest, when Tampa lost out in getting the San Fran Giants to relocate because of Wayne H. I went to local Blockbuster and cut my card right up in front of store manager many years ago.

But, I will raid BB for their used bin for 4 flicks for $20. Actually just last week they had many foregin and indie films that went for 5 for $20.00. Other than that I don't rent, just borrow at the library.

Rick A.

NoURider · **Joined:** 21 Jul 2006 **Posts:** 3310

Typically I get the dvds from the library - they're free, get them for a week, and they get new releases in a timely manner. Never do pay-per-view. Have movie channels. I do have a Family Video around the corner, which is much cheaper than BB, but since I re-dicsovered the library I have not had to rent (nor want) for a film. Very rarely do I buy dvds.

Jon Tyler · 24 Sep 2006

My local Blockbuster closed down about a year ago. An indy video store, which has been in business for 25+ years closed down right around the same time. I hadn't been in either of them in at least five or six years. I've had Starz and Encore movie packages for a couple years and plan to get rid of those very soon. With ten channels, I'm lucky if I can find two movies that I want to see in a month any more. In fact, none of the movie networks appeal to me any more. I've rented a couple pay-per-view movies in the past year or so. I frequently dig through the Walmart $5 DVD bins and can usually find a movie or two each month that look appealing enough to risk $5 on.

A couple days ago, I rented one of the RedBox DVDs (the $1 rentals that are dispensed from a vending machine, found in grocery stores and some McDonalds locations, from what I understand.) They don't have a lot of movies to choose from, but the selection is adequate for me and the price is right. My biggest concern is that you don't receive any type of receipt when you return the movie. I don't know how many (if any) people have been charged for movies that they actually returned. It's all done by machine, so I foresee that sort of issue cropping up from time to time. Other pluses... you can rent the movie from one machine and return it to ANY other RedBox machine. Also, you can view their site online and see which locations have which movies. You can even reserve a movie via the web site, but I haven't tried doing that.

Jeff · 05 Oct 2006

I would not miss Blockbuster for the time it took me to type this sentence. Netflix blows them away in every way with their online service, and a regional franchise video store crushes them on the brick and mortar front. Lower prices, longer rental periods, better selection. BB prices are crazy high.

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