AFI BLOG: Media and Technology

Blockbuster Loss Widens; Online Subs Down After Changes - Digital Media Wire

Movie rental giant Blockbuster (NYSE: BBI) announced on Thursday that its third quarter revenues fell 5.7% to $1.24 billion, from $1.31 million in the same period a year ago, while the company’s net loss was $35 million, compared with a $24.7 million net loss a year ago.

The company cited the closure of 526 of its retail stores during the quarter for the revenue decrease, but said this was offset by a $79.2 million increase in revenues from its online rental service, Blockbuster Total Access.

The service now claims 3.1 million subscribers — down from 3.6 million in the previous quarter — compared with the over 7 million now counted by rival Netflix.