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Blockbuster financial snap shot is looking better despite its looming financial woes. They have made various partnerships with other companies to enrich their offerings like Warner Bros. They are desperately trying to stabilize their financials. This deal will soften their up front costs to catch up on falling behind on paying their bills. “There’s still demand for physical video stores, but that will go away if Blockbuster were to fail,” said Charles Wolf, Blockbuster analyst at Needham & Co. “The movie studios realize that, and they realize that there is an important role to be played by Blockbuster’s stores.”

Playing catch up is a tough position to be in. Being first in a category give their competitors such a big advantage. Strategy is key in finding their voice, messaging and strategy to improve their market position.
“Asking if Blockbuster can compete with Netflix online is like asking if Best Buy can compete with Amazon online,” said Pachter. “The answer is no. It doesn’t matter how well capitalized you are, if the branding isn’t there, you’re not going to be able to compete.”

Reference: CNN Money