Blockbuster CEO says redbox, Netflix pose formidable challenges in 2010

Blockbuster CEO Jim Keyes told investors yesterday that the fate of the company rests on its ability to position its brand throughout a variety of distribution platforms, according to Home Media Magazine.

"The next 12 to 18 months are going to be very challenging," Keyes said. "We are building a multichannel platform approach...at the same time we have brand-new competitors [Netflix streaming and redbox] certainly taking some of the demand out of the market."

Keyes pointed out that the continuing reduction in the number of physical Blockbuster stores domestically and overseas marks a shift in the company's business portfolio, but was actually overshadowed last year by the increased number of Blockbuster locations through branded rental kiosks. The shift also does not mean Blockbuster won't eventually look to offer digital distribution in external markets as well as kiosk vending.