Blockbuster Inc., the video rental warehouse giant from the 90's who employs about 60,000 employees. Blockbuster has been fighting a loosing battle with Netflix for a few years now. Blockbuster has attempted to change there model and adapt to Netflix way of doing business but has made little headway in doing so. Netflix is the world's largest online DVD movie rental service, offering more than 8 million members access to more than 100,000 titles. Netflix has plans that start at $4.99 and have no due dates or late fee's. They even include free shipping to customers and return shipping to the distribution points when you are done with the DVD.
Blockbuster simply can not compete and Blockbusters stock has shown this by going down 57% from it's previous high point. They have pressed on while attempting to structure a profitable fee based system without alienating the few remaining customers that they have. With the current economy having Americans trimming entertainment budgets, even movie rentals are suffering. To add fuel to the fire, two of Blockbuster's credit lines expire in August. The added volatility and possible lack of available credit may force Blockbuster to put in place major cutbacks on staff and stores in the chain.
Sprint Nextel Corp.
A true dinosaur in the cell phone world, Sprint Nextel is struggling. The current incarnation came into being in 2005 when Sprint purchased then floundering Nextel and acquired the Nextel customers and debts for a price of $35 Billion. The combined company has been forced to divest some of its Nextel network and is still struggling to get its finances back on track. One of the only sectors of Sprint Nextel that is making any head way currently is the Boost Mobile pay as you go sector. But even they are having a difficult run for profitability as companies like AT&T seems poised to slam the door on them. AT&T has started putting more emphasis on there GoPhone Packages which is the pay as you go alternative from AT&T. They have even gone a bit further and started offering deals like a FREE V3xx RAZR Package and the popular minute sharing program Add a Line for just $9.99 per month with Wireless from AT&T. I had Nextel and had problems with coverage and service. The phones only seemed to work right about half of the time. Our entire office made the Switch to AT&T! We have not had a problem with service yet and the plans cost less! Thats a win win for us, but is not good for Sprint Nextel.
Trump Entertainment Resorts Holdings
The Donald's Casino company. Trump Entertainment employs about 9,500 employees. But The Donald has received several extensions on interest payments, while they try to sell at least one Atlantic City property and pay off some of the debt they have racked up. Casino buyers are scarce and gamblers are short on cash thanks to the recession. And lets be honest, when you can sit home and save gas and hotel fees and play online games for cash what does the casino really have to offer that you can't have at home? Ok maybe you order some Godiva Chocolates or some Top Rated Wines and have them delivered to your house and put a couple of laptop PC's in the living room and invite a few friends over for Casino Night. Hell you could even get a Gift Basket or two to give out to the nights top winner. But to some you just have to go and experience the Casino. If that is your thing, at least save some money doing it by Searching and Comparing the top travel sites for the best deal. At least you might be able to have a little extra cash at the tables!
Sirius Satellite Radio
Sirius proclaims that they provide the Music that Rocks. For the most part, they are right. I have Sirius and I spend allot of time in my car. I don't want to drive with out it. With the available content specific channels it is a wealth of knowledge and entertainment available 24/7. The major downside is that they have had to shell out most of the cash they had available to them so they could secure talent (I use that term very loosely) like Howard Stern and many other huge contracted stars. Sirius employs about 1,000 people and there stocks have nosedived down about 96% since they hit there high.
SIRIUS Satellite Radio is one of two satellite-radio services owned by the parent company Sirius XM. Sirius XM was formed after the merger of SIRIUS and XM Radio last year. So far, has not been able to become profitable nor has it been able to find savings by joining the two into one company as they had hoped to do. According to some there is a "high likelihood" that Sirius will fail to repay or attain refinancing for its debt in 2009. That would mean I would no longer be listening Sirius on my way to work or on the long road trips that I am forced to take from time to time. It also means that the self proclaimed "King of All Media" would be forced to return to regular old airwaves. I wonder if he could handle it?
I hope I am wrong, but I just can't see them hanging on much longer.