Blockbuster Slows Loss, Still Disappoints

The widely-touted war between traditional video rental outlet Blockbuster and newer alternatives like Netflix seems to be decidedly in the latter’s favor, as Blockbuster’s same-store sales continue to suffer. This has led Blockbuster to report results that missed analyst expectations, even though they marked an improvement of the company’s potential losses.
 
Blockbuster has also decided to lower its unadjusted earnings target by $35 million to a range from $270 million to $290 million. According to Blockbuster CEO James Keyes, Blockbuster will not undergo any dramatic changes to turn the company’s fortunes around, despite growing levels of competition from low-cost DVD rental outlets, such as Redbox kiosks, and slow consumer spending.
 
Instead, Blockbuster will focus on its video streaming services and on meeting its customers’ demand in the retail stores, two aspects that Blockbuster says gives it an advantage in the industry. Investors may not be so certain, though, with Blockbuster’s shares sliding 22 percent after the news, marking a 32 percent decrease throughout the year.

Image: Flickr