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Blockbuster's New Paradigm and Its Impact On Competitors

I was an investment banker. When you go to an analyst day and hear words like "hope," "potential," and "brand recognition," over and over again, you know the company has no tangible plans. Please reread the analyst day script. Many times Keyes notes that BBI is exploring potential ideas, but he did not come out with any hard numbers for a tangible plan.

I have been a Blockbuster member for years. They have always had retail. This is not new. Keyes is spinning it as new. More floor space for retail is not going to get the average person to start spending more money at BBI because they already have all the best complimentary products in the store SURROUNDING THE LINE AREA AND REGISTERS. That's the best you can do in retail next to forcing people to buy. Blockbuster runs a dying business model in an increasingly digital world. Kiosks are not the answer, digital downloads are. And until they get on that horse, this stock deserves to get treated like the long shot spec play it is.

P.S.: The return of late fees will simply send more people to NFLX. When I reread your article you are skeptical about all the ideas, but you think Keyes is great. I am very confused ...

Blockbuster: Poor Earnings, Poor Shareholders.

They actually lost more than 500,000 subscribers. They lost 500,000 NET, and they did not break out GROSS. I bet it was sad.