Despite the fact that Netflix swears they have DRM and security problems with Android, Dallas based Blockbuster Inc has been trying to get their similar app onto almost every new Android handset to hit the shelves. The problem is that Blockbuster, as it was before, is near extinction.
People are having trouble grasping the idea of paying for the Blockbuster apps service, not because they don’t trust the experience they’ve had with Blockbuster but its hard to set up a recurring payment to a company who is uprooting their brick and mortar stores everywhere you look.
Today however Blockbuster has announced it has signed an intent to sell to a group of investor’s calling themselves Cobalt Video Holdco LLC.
Blockbuster’s current CEO Jim Keyes has made no fuss about knowing the video rental business is evolving into online, streaming and mobile. That’s why they’ve taken such an aggressive position with their Android app. In fact most people don’t realize but you get access to just released to dvd movies quicker on the Blockbuster app then on Netflix accounts. That was one of the key selling points when the app was unveiled last June at the Motorola Droid X release event.
With the way things are changing in the video rental business Keyes said he wants to make sure that Blockbuster is sold to those who”will allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster’s future.”
Blockbuster is still in a position to be purchased by someone who will bid more they plan on finalizing any sale by April 20th. Blockbuster’s current suitor will pay just $290 million to buy the once king of the video rental business out of bankruptcy.