Blockbuster threatened by video on demand-Barron's
NEW YORK, Aug 26 (Reuters) - The growth of video on demand over the Internet may slow the growth of video rental chain Blockbuster Inc. (NYSE:BBI) and long-term gains in the stock price are likely in the past, according to financial newspaper Barron's.
As movie studios look to boost profits by providing videos over the Web and people begin to access VOD, Blockbuster's share of the in-home entertainment market will likely fall, said Barron's, citing Jordan Rohan, an analyst with SoundView Technology Group.
The VOD market is likely to grow to $1 billion in 2003 from $30 million last year, while the total market for traditional home videos is likely to grow by single digits, said Tom Adams, president of consulting firm Adams Media Research, in the Barron's article.
``For long term investors, much of the gains are likely in the past,'' the article said.
VOD is not a threat and it will have a minimal effect on Blockbuster, said Blockbuster Chief Executive John Antico in an interview with the weekly paper. |
