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Blockbuster delisting from NYSE under digital crush

updated 01:45 pm EDT, Mon July 5, 2010

Blockbuster can't hold share price under threat

Blockbuster has been dealt a major blow as it has been told it will likely be delisted from the New York Stock Exchange. The company had tried to keep its share price over the minimum $1 by combining its Class A and B shares through a reverse stock split but wasn't able to get enough votes. It had been warned of the problem in November but lost a vote at the meeting that was blamed on "low vote turnout."

The forced exit from the NYSE parallels the rapid fall from prominence for Blockbuster in the past several months. It plans to close up to 960 stores this year as Internet-based opponents have robbed it of much of its core business.

Some of the plunge can be attributed to services like Netflix, which still handle physical rentals but use Internet ordering to avoid the stock limitations of retail stores. However, Blockbuster has also been hindered by direct Internet download services like iTunes; Apple is often considered the largest US provider of pay-per-movie Internet rentals and purchases, and as a consequence has blunted attempts by Blockbuster to move into digital. Netflix also offers Internet streaming and currently has a larger reach than Blockbuster, both on devices like the iPad as well as TVs and set-top boxes.




by MacNN Staff

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Comments

  1. fahlman

    Joined: Dec 1969

    +3

    How about...

    Redbox. $1.00 = 1 night. Order online and it'll be reserved for you so you know it'll be there when you are. Too easy and affordable.

  1. bjojade

    Joined: Dec 1969

    +1

    Redbox makes sense

    You can cram a heck of a lot of DVDs into a redbox. No staff to deal with, no building overhead, etc. The days of the video rental store are fading fast.

  1. webraider

    Joined: Dec 1969

    0

    iTunes

    Sorry, but I prefer iTunes now. No late fees, by the time I drive to pick up the movie, iTunes has it downloaded. I think once they add streaming, it will be over. The last time I rented a movie at blockbuster it was $5 for the DVD. I returned it but the still tried to to charge me 10 days later because they forgot to check it in. I'm sorry to see the "era" of blockbuster gone, but now I feel like I'm looking at the limping Old Timer Dog that no one wants to put to sleep, but deep down you know it would just be better.

  1. starwarrior

    Joined: Dec 1969

    +4

    Dragonian Payday

    Their multiple "GotYa" draconian treatment of customers created its own payday.

    Cannot wait until Verizon and AT&T get theirs. Someone will eventually find a better way.

    It is just around the corner. Good riddance to all of them.

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