Re: Blockbuster Spends Last Few Dollars on Weak Ad
[quote=”Naylia”]
Blockbuster doesn’t have “influence” – they are paying for the privilege. The signed away first lien rights to their Canadian assets if/when they go bankrupt to secure the 28 day window with a couple of the studios. It’s pretty much a last ditch effort to keep the company viable and they are coughing up whatever they can to buy the rights from the studios. If Netflix went to the studios and said “Hey, here’s a bunch of cash and stock in our company can we get the movies at the same time as Blockbuster?” The answer from the studios would be “Of course you can”.
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The answer from the studios would be “no…unless you we can make a contract were you pay all the dvd and movie ticket sales you would take away from us”. Wal-mart is going to say…”if you dont bring back the 28rule then we will stop carrying your dvds in stores or online” to which the studios will say “of course we can bring it back”…and Netflix stock dives 20%