In spite of its recent moves to remain competitive, video rental dinosaur Blockbuster continues to lose ground to newer services like Netflix and Redbox. And a new report from analyst Michael Pachter with Wedbush Morgan Securities makes the scenario look even more bleak.
“Blockbuster is losing customers to Netflix and Redbox at an unprecedented rate, driving continued upside to Netflix’s financial performance,” Pachter wrote in a note to clients over the weekend.
He added that Blockbuster’s recent exclusivity deals with studios like Warner Bros. and Fox won’t be enough to stem the tide toward ultimate doom. “It had similar arrangements in place throughout its decline,” he wrote.
Meanwhile, he predicts significant increases in subscribers this year for Netflix. According to his math, the video delivery service should add around 4 million new users by the end of 2010.
Blockbuster Losing Customers at ‘Unprecedented’ Rate, Analyst Says [Home Media Magazine]