Biz Briefs: A Bid for a Bigger Blockbuster

Blockbuster caused a flutter when it announced a billion-dollar bid last month to buy rival Hollywood Entertainment, and rental chain Movie Gallery Inc. followed up with a bid of its own. What was puzzling, however, was the rationale that inspired Blockbuster's proposal. Online subscription services like Netflix, along with DVD sales and video-on-demand services, have eaten into the company's income. Its rental revenues have declined each quarter this year compared with last. Blockbuster has responded by investing in video-game rentals and launching its own online subscription service. It's "surprising that Blockbuster would choose to spend so much reinforcing its presence in...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!