As further proof that the video rental business is undergoing a sea change, Blockbuster announced today that it will be shuttering 40% of its storefronts. The video rental firm has faced mounting pressure due to the success of Netflix and the now booming business of Red Box, the in-store video rental vending machines.
Blockbuster’s announcement means about 1,560 of its stores will be closed over the next two years. In making the announcement, Blockbuster’s management also mentioned the changing habits of consumers as more and more look to alternate forms of entertainment, thus causing a year-over-year decline of 8-10% in the video rental business.
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