Their business model is antiquated. They only cling onto the customer base that doesn't know how to move forward. But the redbox revolution is pretty much kicking blockbuster square in the face and taking all the 'I just want an impulse rental' market.
Blockbuster has a 'plan', they are just too slow to have started it.
Check out this from their financial postings... they have ideas, they just have failed in execution and have relied on the B&M stores way too long.