SEPT. 11, 2009 • Blockbuster Video announced that it would close up to 960 of it 4,356 U.S. locations by the end of 2010. The retailer hopes to save $30 million as a result of the closures to ease cost pressures that could lead the company into bankruptcy. During the same time Blockbuster will place as many as 10,000 of its Blockbuster Express automated kiosks around the country to compete with its up-and-coming rival Redbox.

Impact: Blockbuster Video built the home video rental market, but they have failed miserably when it comes to expansion.  First Netflix grabbed the online rental market.  Now Redbox has come along and pioneered a new form of physical rental with kiosks in grocery stores and other convenient locations.  Blockbuster Video was a major force in video game rental, but going forward we look at Netflix and Redbox as the most exciting companies to watch.