Blockbuster on the verge of financial collapse
Loses $35 million over the summer
5 November 2007 6:43 GMT / By Amy-Mae Elliott
Blockbuster may be on the verge of financial collapse, Electronista reports.
The company's latest quarterly results show a net loss of $35 million during the summer.
Blockbuster now plans to go on a massive "defensive effort" to protect its "core rental business", CEO Jim Keyes said, which will include job and resource cuts.
Although Blockbuster did not give detailed reasons for the losses, it's thought that internet-based video services are proving too much competition for the chain.
Blockbuster offer hard copy rentals via an online service, it has been slow to adopt to video downloads.
The company bought Movielink earlier this year to offer its own equivalent in the States, but has "done little to tie the two companies together beyond the formal business link", states Electronista.
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