Bye to Blockbuster?
Did anyone read the paper this morning? There was a brief article in the business section of the LA Times that said the Board was unhappy with the current CEO’s decisions and pouring millions into the online foray. But instead of being ousted, the chairman decided to give him a stay in hopes that it can be turned around. Plus, if they actually fired him, they’d owe him $54 million in severance. What a severance!
I am sure the shareholders aren’t happy that the online counterpart is eating into the offline business, especially since their all you can eat video instore rentals cost way more than the online part. What’s interesting is that you would think it would be the other way around, because of the cost of stamps and all of the fullfillment costs.
Anyhow, if they do decide to get out of hte online biz, this bodes well for NetFlix, and could signal the end of Blockbuster since they are losing money because of the online units costs.
Let’s wait and see.
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