Blockbuster is the only publicly traded movie rental chain still in existence after the recent demise of Hollywood Video/Movie Gallery, and their stock price (currently $0.28) isn't much to talk about. More tellingly, Blockbuster's bonds are currently trading at $0.08 on the $1, so the marketplace is telling potential investors that the firm isn't likely going to make its interest payments (and will likely default) in the near term.
A few select debtholders are talking up a potential debt for equity swap to alleviate some of the company's crushing debt load, but that is merely a stalling tactic since most of the bondholders (my opinion) will not take what is very likely to soon be worthless equity in exchange for their bond claims. With $900+ million in debt outstanding, only $100 million in cash and ~$370 million in shareholders' deficit, the company's capital structure is completely shot at this point. From a cash flow standpoint, the company burned ~$51 million during the first quarter of the year and doesn't normally start to generate real cash flows until the end of the fourth quarter around Christmas.
My guess is that Blockbuster files Chapter 7 (liquidation) sometime within the next 12-18 months and the name/trademark is eventually sold to someone else for future usage. The US segment of that company doesn't own any of its real estate and has already mortgaged its Canadian operations' real estate as collateral for the exclusive 28-day home video rental window that with the various studios.
Funny thing is that Blockbuster could have probably easily captured the home video kiosk market by itself if it hadn't chosen the poor strategy of defending its stores channel. When Coinstar first put Redbox into test markets back in 2004, my guess is that if Blockbuster had moved aggressively into that kind of market with its well-known brand slapped its name on some similar type kiosks, they could have nipped this competitor in the bud. With only 170 units in 2004 run solely out of McDonald's eateries, my guess is that Mickey D's would've shut that little experiment down in the face of 5,000 Blockbuster branded machines rolled out nationwide. Hell, Redbox only had 750 deployed nationwide as recently as May 2006 -- today, that number is approaching 30,000 kiosks in the US alone. Since the machines only cost ~$7,500 or so, that would have been $37.5 million in capex to basically kill off a competitor. By investing only a fraction of the book value of Redbox wisely (estimated at ~$340 million when Coinstar acquired the remaining 50% or so back in 2007 from McDonald's), Blockbuster could have most likely avoided its fate. Luckily, capitalism is here to sort out and re-use the assets of the market losers.