Stocks: (BBY)(CMCSA)
Comcast is testing a program that allows consumers to see a movie on cable VOD that same day it is available in DVD form at stores. The time period between the release of DVD and their cable release is now a month of more.
According to The New York Times, Blockbuster’s reaction was: “we believe that they will be very cautious in introducing any new less profitable service that could be cannibalistic to the rental and retail channel.” Well, that may be true today, but it may not be true for long.
No one believes that Blockbuster can make it through the mine field of telecom TV, cable VOD, and competition from firms like NetFlix. It shows in the stock which traded near $30 in 2002 is now trading at just above $5.
With cable getting more aggressive by the day, it could go much lower.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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