Empty shelves at Blockbuster (BBI)

Includes: BBI, MVGRQ
by: David Strahlberg

Home Media Retailing published an interesting piece on the impact of Blockbuster's (ticker: BBI) 'No Late Fees' campaign on store inventories.

Apparently, Blockbuster stores are often lacking popular films as renters keep them for longer periods of time.  Blockbuster used to guarantee that certain movies would be in stock, but that promotion ended before the 'No Late Fees' campaign began.  A coincidence?  Probably not.

Quick comment:  Beneficiaries of this shift include smaller video chains such as Movie Gallery (ticker: MOVI) and Hollywood Entertainment (ticker: HLYW), as well as mom-and-pop stores, which may offer a better selection of recent hits.