There’s a Blockbuster video every few blocks up and down El Camino Real, and I never considered that their business model may fail someday in the future. I’ve read various articles about the advent of broadband video on demand and so on, but the public still seems stuck in the DVD/VCR rental mode, even with pay-per-view and satellite availability. The checkout line on weekends seems to indicate no shortage of customers. But, according to this BusinessWeek article, Blockbuster’s stock price is down in the dumps, though their sales are doing OK. “Since 1997, Blockbuster’s revenue has grown about 15% each year, almost all of that coming from video rentals and sales.” But investors don’t expect them to last in the future, which to me seems ironically backwards as those astronomic valuations on ecommerce companies who are actually tanking in their sales. Blockbuster is making serious moves to get on the broadband pay-per-view wagon. I wonder how long it will be before those ubiquitous stores disappear?
