Blockbuster may shutter 960 stores
SAN FRANCISCO - Blockbuster Inc. may close as many as 960 stores by the end of next year, shedding more dead weight as the struggling video-rental chain tries to reverse its losses and fend off rapidly growing rivals Netflix Inc. and Redbox.
The cuts outlined in documents filed yesterday would leave Blockbuster with about 20 percent fewer U.S. stores.
The cuts are something Blockbuster is considering as it sets up more DVD-rental kiosks in the stores of other merchants. It's a concept that has been popularized by Coinstar Inc.'s Redbox.
By the middle of next year, Blockbuster hopes to have 10,000 kiosks scattered around the country. It had just 500 kiosks at the end of August.
"We could have fewer physical stores and still have more rental points for our customers," Chief Executive James Keyes said.
Netflix's DVD-by-mail service, launched a decade ago, has hit Blockbuster particularly hard.
Redbox also has been hurting Blockbuster with its red kiosks that rent DVDs for just a $1 per night.
Netflix shares surged $1.58, percent, to $44.86. Blockbuster's gained 9 cents, to $1.42.
