It is easy to say that Blockbuster revolutionized the way we consume movie entertainment. We no longer had to wait for the biggest release to finally make its way to our television set by way of a network purchase or cable television license. Even when cable prices kept the service out of some homes, Blockbuster rentals were still within reach, especially when the VCR became affordable for the standard home. 

Fast forward some 30 years and the industry is very different than it was when Blockbuster was in its prime. One Yahoo News report suggests bankruptcy rumors have danced around the company for years. One Los Angeles Times report suggests Chapter 11 protection will be filed as early as next month. 

Anonymous sources claim that Blockbuster executes are on the verge of declaring “pre-planned” bankruptcy in September. While the company plans to have the cooperation of most of its creditors, not all are on board.

The rumored plan includes Blockbuster restructuring the nearly $1 billion in debt and eliminate the leases of roughly 500 remaining – and increasingly irrelevant – brick-and-mortar video rental locations. The company still maintains 3,400 locations.

The company plans to also double down on its growing NCR-operated Blockbuster Express kiosk business and its digital download service. The company is recognizing that it cannot survive against competitors like Netflix or Redbox with its current business model.

While all of this sounds quite plausible, so far no one at Blockbuster has actually confirmed the rumors or detailed its plans. And, while there are many who love the options with Netflix and Redbox – especially the lower cost – don’t count Blockbuster down AND out. Consider that competition is always good for the consumer and while it may take Blockbuster a while to emerge from this place, it already has the brand and the foothold in the market.

Blockbuster is making positive steps forward as it announced earlier this month that it is adding video games to its DVD-by-mail and Total Access mail subscription programs in an attempt to be more competitive in the nearly $20 billion a year gaming market.

The Dallas-based company also said it formed a marketing partnership with the nation's largest cable TV company, Comcast (News - Alert) Corp., to offer its by-mail DVD subscriptions at a $3 monthly discount to cable customers.