Facing increased competition from the likes of Netflix, video-on-demand, and kiosk operators, Blockbuster now plans to shut down nearly 1,000 stores by the end of next year, according to an SEC filing. The figure is more than twice the 410-450 unprofitable stores that it previously had said it planned to shutter. The new figure represents about 22 percent of Blockbuster's total of 4,356. The filing also disclosed that 35 percent of Blockbuster stores account for 80 percent of its profits. The company said that closing the unprofitable stores will save $30 million in annual losses and that $20-30 million in revenue from those stores will transfer to nearby locations.

16/09/2009