www.thesun.co.uk/article/0,,2-2005360766,00.htmlRental giant Blockbusted
By IAN KING
Business Editor
BLOCKBUSTER has crashed into the red — and the film rental chain blames Hollywood for a £98million loss.
Bosses said home viewers snubbed a lousy line-up of new American releases in the first six months of this year.
Many recent big budget flicks like Sky Captain And The World Of Tomorrow starring Jude Law, Russell Crowe’s Cinderella Man and Batman Begins failed to pack box offices.
The slump has led to fewer people watching the films when they are released for home rental.
Blockbuster also said piracy, the growth of online rivals and cut-price supermarket DVDs left many punters preferring to buy movies.
The US-owned chain — which employs more than 7,000 staff in over 700 British stores — saw a £98million half-year pre-tax loss.
Last year the firm made £112million PROFIT in the same period.
Chairman John Antioco admitted results for July, August and September would also be disappointing.
He said the downturn had been “faster than anyone expected”, adding: “Our results reflect the impact of the declining store-based video rental industry.”
Blockbuster said its decision to scrap late fees for customers returning DVDs and videos had also dented profits.
And the firm faced the extra cost of setting up an online rental site to claw back business from websites like Screen Select and Love Film.
A monthly subscription lets movie fans have an unlimited number of DVDs posted to their homes. Viewed films are posted back to the firm.
Blockbuster says it will be profitable by the end of the year.