First it is going to raise the price of its Total Access program and now Blockbuster is taking another hit.
In a story from The Hollywood Reporter, the world's largest rental chain announced that was closing 282 stores this year. They closed 290 last year.
This company decision "comes in the same week that Blockbuster ended its legal dispute with Netflix, settling their lawsuit without going to trial and without disclosing any details."
Blockbuster had been "recently growing its online service faster than Netflix" and "has been able to grow, though the latter still is the larger with 6.8 million subscribers, more than twice Blockbuster's count."
All of the recent activities at both "the companies this week has so far been interpreted as a small plus for Netflix and a negative for Blockbuster. Netflix shares are up fractionally on the week, while Blockbuster has fallen 6.1%."
Currently, "Blockbuster has about 5,000 stores in the U.S. and 3,000 outside of the country. Spokesman Randy Hargrove said that when 290 stores closed last year, 25% of the revenue from those was transferred to nearby Blockbuster stores, and he expects similar numbers this time.
"We've always closed and opened stores, we're just closing more and not opening new ones," Hargrove said. "We have always predicted consolidation in the industry."
The best news for Blockbuster seems to be that "the company expects not to lose many of its 47,000 U.S. employees because of the closures."
The ultimate goal for Blockbuster is "profitability with its online service sometime next year, and soon-to-come moderations to Total Access 'won't just focus on price.'"