Tough Times for Blockbuster and Hollywood Video. This Motley Fool article reports that both Blockbuster and Hollywood Video are struggling as the video rental industry appears to have flattened out. Netflix - the video home delivery system -- is continuing to thrive although the success may not be based on industry growth so much as a consumer shift to the Netflix model. The article also reports that rumors have surfaced that Blockbuster's parent, Viacom, is looking to sell the chain. The question that these industry conditions raise is this: Is this a temporary consumer lull or are video rentals becoming obsolete in view of the other technology available? For a look at this issue and competition facing Blockbuster and Hollywood Video, see blog entry from September 3, 2003.
Posted by franchiselawblog at October 14, 2003 02:24 PM