Blockbuster Video’s Liquidation: Boon for Netflix?


Bloomberg

As The Journal reports, the future of Blockbuster Inc. hangs in the balance Thursday, when a federal bankruptcy judge is expected to rule on whether the flagging video chain stays in business or is liquidated.

One analyst thinks that a Blockbuster liquidation — should it come to pass —  would be a potential longer-term boon for one of the hottest stocks around: Netflix. (Still, CoinStar’s Redbox rental kiosks might see a more immediate bump.) Eric Wold of Merriman Capital notes:

While consumers shopping at Blockbuster may be doing so because they prefer to rent movies on a one-off basis as opposed to being locked into any monthly subscription plan, they may not immediately gravitate over to Netflix when their local Blockbuster store closes. However, given that those consumers





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