The rental shops and film industry want to kick some azz in the money market do this. When that movie is released make it streamed/downloadable to families at home. This will get more money from people who dont pay 10-20 bucks (ticket,food,drinks) to see the good rated but actually crappy flick. I am a delayed watcher until it hits ppv, dvd's rental etc. I (others also) lose interest after the first few weeks of the flick at the cinema. Give the movies to us now in all possible ways if you want our cash.

Agreed but the video file must be DRM free and in an open source format.

This was expected. I wouldn't be surprise if Chapter 11 is filed next.

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netflix download "service" is a money burner too.

Looks to me that NetFlix had all the nails already set in the coffin they just had to hammer down for this poor Blockbuster to go underground. :)