Blockbuster: Keeping Hope (for Its Bullish Investors) Alive

Blockbuster previously canceled its call with analysts, which typically takes place after the earnings release, citing "the sensitive nature" of ongoing recapitalization efforts.

Blockbuster, in its defense, isn't going down without a fight. Over the past month the company has rolled out several new initiatives, in an effort to prove that it can keep up with its rivals.

This week the company added video games to its Blockbuster by Mail service, and also teamed up with Comcast(CMCSA) to launch DVDsByMail.com, a site that allows Comcast subscribers to sign up for its mail service at a discounted rate.

Blockbuster is also offering its Canada members a $9.99 per month plan that will allow them to rent unlimited movies (one at a time).

Meanwhile, Blockbuster's 28-day head start over rivals Netflix(NFLX) and Coinstar(CSTR) on access to movies from Fox, Universal and Warner Brothers should give it a slight edge. The liquidation of Movie Gallery, its predominant brick-and-mortar rival, is also expected to provide a boost going forward.

Still, as Blockbuster warned in the fine print of its Securities and Exchange filing, a Chapter 11 bankruptcy filing -- and even a Chapter 7 liquidation filing -- remain real possibilities if the company can't come to some sort of agreement with creditors.

-- Reported by Jeanine Poggi in New York.

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