Blockbuster posts massive losses

DVD and video rental chain Blockbuster posted huge losses for the third quarter of this year.

The chain, which requires cd and dvd duplication services to maintain its stock, reported a net loss of $35 million between July and the end of September - and it is now planning to cut jobs and sell off resources as it looks to protect its core rental business.

Analysts say that the retail firm could be on the verge of collapse - as it struggles to cope with aggressive competition from online DVD and video rental outfits. Blockbuster currently offers hard copies through its online distribution channels - but has been slow to adopt download services.

James Keyes, the company's chief executive, says that the company may "selectively licence" some of its overseas market - thus allowing it to sell some of its physical assets. It recently sold its Australian operations to the region's largest retailer Video Ezy - and rumours persist over the ownership of its New Zealand franchise business.

This time last year it had 9,042 stores worldwide. This figure has dropped to 8,320.

"Going forward, we are focused on protecting our core rental business, developing new retail opportunities, and becoming the preferred provider of digital entertainment," Mr Keyes commented. "To this end, we have launched a series of initiatives centred around product availability and increased emphasis on our retail business."