Blockbuster may have drawn business away from rival Netflix with its Total Access plan that allows subscribers to rent or return movies at either its stores or via its website, but the plan, according to Barron's magazine, is "killing its bottom line," resulting in a loss of before-taxes loss of $113 million in the last quarter. Barrons quoted Blockbuster CEO Jim Keyes as saying, While we remain committed to capturing market share in the overall video-rental market, we are absolutely focused on striking an appropriate balance between growth and enhanced profitability going forward." The magazine is forecasting that Blockbuster will be forced to raise prices, thereby causing Netflix shares to rally. They're down 34 percent since the beginning of the year. Blockbuster's are down 17 percent.




07/08/2007