Pretty spot on.
I do find it amusing that I read an article a couple of years back that said Block Buster would be dead by now.
Blockbuster is a bit of a special case here. I don't think it's inaccurate to say that Blockbuster's original business model (thousands of physical stores across the country charging $5 to rent a movie for 2-5 nights) is almost completely dead in the US. According to an article I read a couple months ago in the journal, they are planning to close 25-30% of their physical stores in the next year.
Unlike most of the other companies on this list, they've had an opportunity to adapt their business model. They followed Netflix into the mail-order DVD rental business, they are following Redbox by setting up 1 night rental kiosks, and they could potentially follow Apple and Amazon by offering online digital content.
There are two key problems with Blockbuster- 1) Instead of being a business innovator (they were actually the first rental chain not to buy their movies outright, they instead set up a "royalty" system with the studios for each rental) they've become a follower. This isn't always an issue, particularly if a company is #1 in their industry and has deep pockets to catch up quickly (the Microsoft model). However this is related to problem #2) They are having some serious financial difficulties. They've been losing money for a number of years and they are relatively highly leveraged.
If the company is able to financially restructure, move almost completely out of the retail store business and rely totally rely on kiosks, mail-order, and digital content, then I think they could survive and thrive. It's a good thing to have a competitor to Netflix- it will help keep the company honest and keep prices down.
