So, it would finally appear that the “lower prices” plan at Blockbuster (BBI) is only “lowering profits”?
This one is really bad. Despite a GAIN of $77 million on the sales of Gamestation Stores, the company still managed to lose $35 million. Lest one think this is “not that bad”, last year at the same time they had a $68 million profit. Blockbuster currently has a “get more subscribers that Netflix (NFLX)” at all cost mentality and it is coming at, unfortunately, too great a cost. Far too great…
I am just waiting for the next earnings call when they announce that “in an effort to gain more subscribers, we will now pay them $2.99 per rental. If we have to pay every person in America to rent from us in order to be the number one video rental chain we will do it.”
At least they will have more subscribers than Netflix…. fools..