Blockbuster's Future Looks Dicey

Blockbuster (BBI Quote) won its freedom Tuesday, but the only people cheering were the Viacom (VIA.B Quote) investors bidding the troubled movie-rental chain adieu.

Viacom ended weeks of speculation by saying it would spin Blockbuster off to shareholders. The New York media conglomerate, which owns 81% of the Dallas movie company, made the move after it wasn't able to sell the chain to private investors.

Now the spotlight turns to Blockbuster, which faces rising pressure to remake itself in a shifting movie-industry landscape. The company, under competitive fire from DVD sellers and rival rental services alike, rolled out a plan to spend $70 million to $90 million preparing to offer new services. ...