Tuesday, December 4, 2007

Blockbuster Almost Finished

Blockbuster (BBI) is in the midst of a standing eight count in its fight against NetFlix (NFLX)

The site Compete.com has a chart that shows what I am talking about.

Now, Blockbuster earlier in the year was gunning for NetFlix in the online game. Less than a month ago, I noted new CEO Jim Keyes was "still considering ways to build up a digital distribution channel for films. Proposals include merging its Blockbuster.com Internet site for ordering films by mail with its Movielink download service, and partnering with telecom and cable companies."

Still considering? What is he waiting for? As far back as August they finally got the ball rolling here and yet despite the chart above, they are still dragging their heals and actually talking about "remodeling the stores" in some bizarre Apple (APPL) induced concept. Note to Keyes: It works for Apple because they are, well, Apple, people cannot get enough of their products. Your Blockbuster, when folks think of you they think, "are they still around?".

The oddest thing? Back in July when former CEO John Antioco was fired Keyes said "as the technology continues to evolve it will be my job to have Blockbuster front and center as a player in those areas of technology".

Okay... any day now. In case you did not realize, you are rapidly becoming irrelevant.

Back in July I said "If nothing else, he cannot screw things up there any more than they are now. For under $5 a share, it just might be worth taking a gander. I want to see what Keyes will do, I want to see more that 290 stores closed this year. Double it and I become a buyer."

I would like to correct that now. Apparently Keyes can and has outdone his predecessor. Not with a 10 foot pole would I touch this one now. With shares down 40% since then, I guess most folks feel the same way.

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