You will be redirected back to your article in seconds

VOD dings B’buster shares

Barron's article reexamines co.'s vulnerability in marketplace

NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise.

The stock fell $1.60 to $20.35 after a story in financial weekly Barron’s revisited Blockbuster’s ultimate vulnerability to a gradually changing marketplace. Some on Wall Street noted that Blockbuster, whose shares have soared from under $7 a year ago to more than $20, were overdue for a correction.

That’s partly due to Blockbuster’s own hints that it may abandon or restructure video revenue sharing deals as higher-margin DVD rentals become an increasingly big chunk of its business.

The Barron’s story was prompted in part by an agreement among five film studios earlier this month to collaborate on a system to deliver video-on-demand over the Internet. The move implies that Hollywood studios, which have made a bundle in revenue sharing deals with Blockbuster, may be getting serious about VOD. However, true VOD, according to many Wall Streeters and industry players, still remains years away.

More Digital

  • League of Legends Championship Series North

    Ten Franchise Teams for 'League of Legends' North American eSports League Unveiled

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

  • mozilla social vr

    Mozilla Lays Out Plans for Web-Based Social Virtual Reality

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

  • IMAX-VR-Centre---Reception_800x500

    ‘Justice League’ VR: Imax VR Centers Get First Exclusive Title From Warner Bros.

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

  • Comcast X1 the voice voting grid

    Comcast Viewers Can Vote for 'The Voice' Contestants Using Their X1 Remote Control

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

  • lebron james - youtube

    LeBron James to Produce Uplifting High-School Basketball Docu-Series for YouTube

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

  • Marvel Strike Force

    'Marvel Strike Force' Mobile Fighting Game Release Date Set for 2018 (Video)

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

  • Iflix Makes Middle East Splash With

    Iflix Makes Splash in Middle East With First Arabic Original 'Tough Luck'

    NEW YORK — Shares of Blockbuster tumbled more than 7% Monday on a new round of investor jitters that the growth of video-on-demand heralds an uncertain future for the video rental chain. It’s a worry that periodically plagues the stock even as VOD struggles at the starting gate and Blockbuster revenue continues to rise. The […]

More From Our Brands

Access exclusive content