Blockbuster movie rental service is what we are talking about. Order any movie and it will be delivered at your door. All you need is to subscribe to our blockbuster site and enjoy a whole new world of entertainment. We have a very wide range of movies. The new released movies, popular movies, old classics and also the evergreen hits of all times. And we also offer you games.
Blockbuster’s battle with Movie Gallery, however, could have had a much more direct effect on the profitability of its business. If Movie Gallery would have been forced into chapter 11, it would have put Blockbuster in a position to directly capitalize on aggressive store closings or by buying out Movie Gallery stores in a fire sale. Because Movie Gallery is a direct competitor to Blockbuster, any store closing would transfer high gross transaction customers straight back to Blockbuster. Now that Movie Gallery won’t be forced to liquidate the business though, Blockbuster will continue to have to compete not just for lower gross margin online renters with Netflix, but will also continue to face a very tough market for transactional customers as well.
It’s too early to say how Blockbuster or Netflix will react to this renewed competitive threat, but it is clear that Movie Gallery has gotten a new lease on life from its deal with Goldman Sachs. While the fundamentals of the video store market continue to be challenging, with this deal in place, it buys the company at least five more years, before we’ll know how this movie ends. So what are you waiting for subscribe and enter the new world of movies.
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