Blockbuster Stores Closing- Where Are People Renting Movies?

Americans are spending less time meandering around video stores, in favor of renting movies from Internet streaming giants such as Netflix, Vudu and Amazon VOD. Compact DVD and Blu-ray rental machines like Redbox may have contributed to Blockbuster's declining market share, as well.

In September of 2010, Blockbuster filed for Chapter 11 bankruptcy protection for the company's 3300+ stores, operating within the United States. The once popular movie rental palace has made an effort to stay afloat with video on-demand services and rent-by-mail; however, the effort to keep up with how people rent or buy new movie releases seems to be in vein, with the up rise of competition throughout the last few years.

Many traditional consumers who prefer to rent movies from places such as Blockbuster are pretty disappointed with the store closing announcement, especially those who live in smaller communities. Reports indicate that Blockbuster intends to close up to 609 stores, possibly 180 before April of 2011.

Although, Blockbuster offers VOD services that will allow consumers to purchase or rent movie selections online, the number of supported devices are rather disappointing. By comparison, Netflix and a handful of other online streaming services are available on the Xbox 360, Sony PlayStation 3, Nintendo Wii and several other media streaming devices. Blockbuster's On Demand services will work with the Xbox 360, under Microsoft's Media Extender software. Aside from a select number of standalone devices and Blu-ray players, you can also watch Blockbuster VOD services using a TiVo DVR.

The pricing for new releases appear to rival that of Amazons VOD service. Unlike Netflix, Blockbuster charges per selection when streaming movies over the Internet, but offers new releases the same day selections are available on DVD or Blu-ray.

Time will tell if Blockbuster will make it back to the top. With reorganization, smart marketing and a better product offering, Blockbuster may be able to reign supreme once again. With more companies joining the online movie streaming bandwagon, they will definitely have their work cut out for them.