Honestly is anyone surprised by this? First off, if you just look at their stock over the last 10 years it was pretty clear they were going to die hard. On top of that, why in gods name would I ever rent at blockbuster? Their selection was poor, at best, only moderately acceptable for new releases, the rest was godawful. The prices weren't even remotely competitive. For the price of renting a movie I could almost buy one. Then of course there is the convenience of red box for new releases or netflix on demand for 'I don't know what I want to watch exactly.)
Really the killer for me was the pricing. I can buy a movie at Valero for like 7$. And not some crap movie either, something good. I think I saw Inglorious Basterds there for 9, I got Charlie Wilsons War for 6 a couple months ago. I just grabbed Hellboy for 6 at the Randalls. Why would I ever pay 3-6$ to rent a movie when I can own it for 6-9?