It's no longer

Blockbuster's

(BBI) - Get Report

night.

Profits at the company plunged 42% in the first-quarter, as consumers turned to mail-delivery and the Internet for movie rentals.

Investors who have been worried the company may be forced to file for bankruptcy protection received little hope from the report, and sent the company's shares plunging 17% to 94 cents in after-market trading.

The company has tried to stay relevant to its competition by developing its own version of the

Netflix

(NFLX) - Get Report

DVD-by-mail system and acquiring technology that allows consumers to download video over the Internet. It is also working on installing DVD vending machines in its stores to appeal to consumers who prefer to rent movies via kiosks in supermarkets and other retailers.

Blockbuster missed expectations by 3 cents, earning $24.9 million, or 12 cents a share during the quarter. This compares with profit of $42.6 million, or 20 cents, last year.

Revenue slipped 20% to $1.12 billion.

Meanwhile Netflix has been thriving, adding 1.6 million subscribers since September, giving it more than 10 million customers. Last month the company said first-quarter earnings soared 68% to $22.4 million, or 37 cents per share.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.