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Old 01-15-2008, 07:23 PM  
kane
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Join Date: Aug 2001
Location: portland, OR
Posts: 20,684
I think Blockbuster and Hollywood video are hurting. In the last five years Blockbuster has seen its stock drop from around $15 a share down to around $3 a share. With more and more things out there to take up people's time stores like Blockbuster have more and more competition and it will only get worse. Now there are so many places to get movies via pay per view that renting them is less attractive to many people. With high speed Internet continuing to roll out, ipods, cell phones that do every thing, video games and cable TV with 200 channels fewer people see a reason to drive to the video store. That said I think DVD sales will stay strong for a long time to come. Some people just like owning the DVD. I don't know why, for 95% of people buying a DVD is a waste of money because they are going to watch it 1-2 times and then it collects dust for years, but people will still buy them. However they may not rent them because it is a hassle driving there and back and maybe getting late fees.

I won't be surprised to see either blockbuster or Hollywood video buy the other chain out in the next 5 years and then downsize the whole operation.
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