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Blockbuster to cut costs, buy fewer DVDs from studios

Darren Murph

Maybe we're way off our rocker here, but it seems like every quarter Blockbuster is trying something new to get its business out of the dumpster. We've heard everything from potential mergers to boosted rental prices to yes / no on enhanced digital delivery, and now we're hearing that it'll be slashing costs by offering less of what you want more of. While the company saw same-store sales increase 4.4 percent in Q4 and 6.4 percent for the full-year 2008, it still managed to post a $435 million loss on an impairment charge for the most previous ending quarter. In order to shave costs, we're hearing that it'll be buying fewer DVDs from studios and lobbying for "better revenue-sharing participation from movie studios and video games publishers." In reality, though, we see all of this as just a band-aid for a stupendously large gash; it's going to take a serious overhaul for Blockbuster to survive the next decade, and buying a few less discs ain't it.

[Via TomsPayde]

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