Blockbuster Video's recent Chapter 11 filing has triggered disbelief among many that such an infamous video rental corporation would go under. The rental giant was removed from the New York Stock Exchange due to declining sales and uncertain trade aspects, in the face of online rental competition such as Netflix and iTunes.
Blockbuster Video had closed several hundred stores in the United States, but will keep many stores open until the bankruptcy protection program goes into effect. The corporation is hoping to reduce debt from $1 billion to $100 million with its new action plan.
What Makes This Trend Stand Out
- Online Rental Dominance
- Blockbuster's bankruptcy highlights the increasing domination of online rental services like Netflix and iTunes, presenting opportunities for disruptive innovation in the online video rental industry.
- Decline of Physical Retail
- The decline of Blockbuster and physical video rental stores in general showcases a need for disruptive innovation in the physical retail industry as consumers continue to shift towards online shopping.
- Bankruptcy Protection Plan
- Blockbuster's new bankruptcy protection plan presents opportunities for disruptive innovation in bankruptcy law and financial consulting industries.
Sectors Adopting This
- Online Video Rental
- The dominance of online rental services highlighted by Blockbuster's bankruptcy presents potential for disruptive innovation in online video rental businesses.
- Physical Retail
- The decline of Blockbuster and physical video rental stores in general presents opportunities for disruptive innovation in physical retail and entertainment industries.
- Bankruptcy Law and Financial Consulting
- Blockbuster's new bankruptcy protection plan presents opportunities for disruptive innovation in industries related to bankruptcy law and financial consulting.
