Blockbuster Isn't Dead

The company is moving fast to deal with the challenge of online rentals.

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Don't count Blockbuster out just yet, says Fortune magazine. The company is taking some dramatic steps to remake itself in the face of fierce competition from Netflix's mail-order movie rentals, video on demand, and Apple's recent rollout of online film rentals. Blockbuster reported today that it more than quadrupled its fourth-quarter net income with the help of "aggressive cost reductions, the repositioning of our subscription programs, and a renewed focus on store merchandising" over the last half of the year, Blockbuster CEO Jim Keyes said in a statement.