Another day and another video entertainment store, this time Blockbuster UK, in problems.
Like HMV a couple of days ago it has appointed Deloitte, the accountancy firm, to take over running the firm. Blockbuster UK will keep trading while it tries to find a buyer, at least that is the hope.
It was in 1989 that US Blockbuster set up a UK company in the United Kingdom. The company grew but like here in the US many of the locations have already been closing.
The online rental market became increasingly crowded with rival services. Now we have streaming films over the internet which is gaining popularity.
As with HMV this puts a similar number of jobs at risk of around 4000 people.
Also like HMV the British Video Association has commented…
British Video Association – Press release
16th January 2013:
Commenting on Blockbuster entering administration, Lavinia Carey, Director General at the British Video Association said:
“The BVA is saddened by the news that Blockbuster has followed HMV into administration today. This is a bad start to the year for video entertainment. Like HMV in sales, Blockbuster was the last significant specialist rental retailer, whose stores had 32% share of the rental volume in 2011, down from 35.6% in 2010, in a market that is being challenged by digital video models that are starting to fulfil consumer demand amongst younger viewers with connected devices and those with smart TVs via internet services.
“Although video rental stores have declined in number in the last 10 years, when there were several rental chains in the UK apart from market leader Blockbuster, generating over £500 million in consumer spend and 86% of that on physical formats, in 2011 consumers were still spending £464 million on renting video, but by then it had declined to 59% physical and 41% on digital video rentals. Nevertheless, Blockbuster still has significant market to fulfil, with 8.8 million people saying they rented a disc in 2011, according to Kantar Worldpanel.
“The BVA truly hopes that administrators, Deloittes, will be able to oversee a successful restructuring of the Blockbuster business so that access to disc rentals can maintained where there is a market and consumer choice can be satisfied.”