Blockbuster Gets De-Listed From NYSE, Narrowly Avoids Bankruptcy

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Compared to just 5 years ago the various ways to receive and consume content has grown dramatically. Back then you had to get up off your couch (frightening, I know), get in your car and head to your local video rental store to rent any type of movie or video game. Now, with services like Netflix, Gamefly, Xbox Live and the Playstation Network running rampant, the ways to rent content without leaving your home are a plenty.

Now only can you send away for mail-in movies and video games from Netflix and Gamefly but in addition to Xbox Live and the Playstation Network you can not only stream and digitally rent movies, but video games as well. Considering these forms of content rental are much easier, more efficient and gaining popularity at an alarming rate over traditional brick-and-mortar rental stores, what is to happen to these retail locations?

Well, if you’ve been renting movies for a while you’ve undoubtedly heard of Blockbuster as throughout the 90s and the early 00s, Blockbuster was by far the most popular video/game rental store worldwide. Unfortunately for them, their time in the limelight has passed and some discerning news regarding the company has surfaced today.

Apparently, after running into some problems with profitability, Blockbuster has been de-listed from the New York Stock exchange with their shares dropping as low as 18-cents per share. The company ran into this dilemma after failing to win the majority of stockholder’s vote for a reverse stock split that could have seen stocks priced right around $1, securing a spot on the NYSE.

To make matters even worse, talks of the company growing dangerously close to bankruptcy have been making their rounds. Not only do they have well over $900 million worth of debt but industy analyst Michael Pachter has gone on record as saying “there’s nothing on the horizon that makes it look like Blockbuster is going to be more profitable”.

What is your favorite way to rent content? Do you just rent it digitally or head to a video rental store like Blockbuster?