Blockbusted?

I predict that Blockbuster will not exist in 5 years.  This prediction is based primarily on the idea that film, like music before it, will increasingly be distributed digitally and physical media will all but disappear.  There will always be the small contingent of people that insist on owning a piece of plastic but the majority of consumers will get their content through downloads. 

Evidence of this shift includes the increasing share of music, tv, and movie sales and rentals through services like iTunes and Netflix.  As it becomes easier for consumers to get content delivered directly to them no matter where they are, the need for physical media will diminish.  Of course this spells bad news for companies like Blockbuster that have not found a way to move beyond dealing with tangible products.

Blockbuster is already doomed and digital film downloads are only just now becoming common.  Blockbuster failed to break into the distribution of movies through the mail and Netflix jumped in to fill the void.  Now, Netflix is delivering the killing stroke to Blockbuster by helping develop set-top devices and software that can stream movies directly to the living room.  The Roku player and the recently announced partnership with Microsoft to stream movies via Xbox Live allows Netflix to capitalize on its sizable lead in the alternative distribution of movies.  This development will likely sweep away Blockbuster and other brick and mortar based rental shops in a matter of years.  The only thing left to do to complete this process is for new releases to be made available as streaming content.  Hollywood is still balking at this option, but I hope the execs are learning from the mistakes made by the music industry and that the streaming issue will be settled soon.

In the long run these developments are better for consumers, if not Blockbuster employees.  The day is coming when you can chose to watch any movie or television show ever released on demand.  I for one can't wait!