Blockbuster in deal with Twentieth Century Fox and other studios 0
Desperate measures have to be taken when the times are desperate. This is what Blockbuster has had to do as it wanted to keep its business going and also ensure that it can recapitalize itself. This will help Blockbuster to ensure that its franchise keeps running and it does not run aground into a kind of bankruptcy mode. This is why Blockbuster has cut a deal with 20th Century Fox Home Entertainment and also Sony Pictures Home Entertainment. Under the deal, Blockbuster will get the movies from these studios to Blockbuster in stores as well as by-mail channels. In return, these studios will get the first lien to Blockbuster assets in Canada.
The deal will help Blockbuster to reduce its debt as well as operating costs and it shows there is studio support for the company as it fights tough circumstances. The company would like to make good use of its assets in Canada as a means of leveraging its position with these large and leading companies in a bid to salvage its business and keep it from sinking under. The company has been looking at using its assets in Canada in order to strike a deal with the studios and staving off worries that it would buckle under the huge financial pressures it faced.
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