Bbi As of Nov 13, Term Paper

Total Length: 2012 words ( 7 double-spaced pages)

Total Sources: 5

Page 1 of 7

..2006). In addition to the aforementioned conveniences, blockbuster also offers Total Access customers who exchange online rentals at the traditional store, a free movie rental coupon every month (Block Buster Launches...2006).

According to the press release blockbuster hopes that this new program will attract more customer to the company. It appears that it is aimed at attracting more customers not only to online subscription but also to the traditional stores.

Significant Price moves and major news events

The announcement of Total access spurred a price move on November 7th. According to an article found on Reuters the stock price rose 9% on this day (Blockbuster shares rise after Cramer comments). Analyst declared that "Total Access plan, which allows subscribers to its online rental service to swap DVDs at its stores, "should drive Blockbuster higher and put it ahead" of rival Netflix Inc. (Blockbuster shares rise after Cramer comments).
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Splits and Dividends Declared

No splits have occurred as it relates to this stock.

Projection of Blockbusters Growth Rate

Based on the past five years Blockbuster's growth rate is rather uncertain. It is very likely that growth rates will decrease in the next five years, depending on how volatile the market becomes. In addition, a great deal depends on the company's ability to overcome issues with debt and the poor credit rating that the company has. In addition, even with the introduction of Total Pass, there are other business and financial obstacles that the company faces including an extremely low stock price and competition not only from similar businesses but from piracy and new technologies that allow for video on demand and other incentives......

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