Blockbuster On Brink of Collapse?

The short answer is no.

The long answer, however, involves a discussion of the various ARMS of Blockbuster, but one thing’s clear enough–Blockbuster’s days IN ITS CURRENT FORM are numbered.

Video store guys (and ladies), pay attention–your jobs are likely doomed.  Blockbuster, not too long after announcing that several hundred of its stores would be shuttered permanently to kick off 2010, also came out with the announcement that they just saw huge losses in third quarter 2009.

And there’s likely a good reason.  There are simply so many replacements available for Blockbuster chain stores that it boggles the mind.  On demand, iTunes, and let’s not forget that dynamic duo of Netflix and Redbox–even the neighborhood video store still has a place in most people’s lives (especially as they so effectively combine movie and video game rentals, and let’s face it, Gamefly is still woefully deficient on that score).

But I don’t think Blockbuster will collapse.  I think it’ll finally shutter its brick and mortar stores and go strictly online.  It might even keep the local stores as warehouses for their stock, and gain a serious size advantage on Netflix while also reducing costs.

Whatever happens, they’d better do something soon, or else the whole operation’s going down.