Internet Closes Companies: The internet is devouring the profits of once giant companies

12 hrs ago, Who Knew? Videos

The Internet age has improved our lives in many ways, but it has also spelled doom for several companies and industries.

Blockbuster is the Internet's latest casualty - its parent company, Dish Network, recently announced that all remaining stores will close in early 2014.

Dish will also shut down Blockbuster's by-mail movie distribution business. Companies like iTunes and Netflix have eaten away at Blockbuster’s income.

In 2004, Blockbuster had annual revenues of around $6 billion. In the second quarter of 2013, it was down to $120 million.

Other industries are feeling the pressure, too.

Ad revenue for print media, such as newspapers and magazines, has dipped as more consumers go online for their news.

Print newspaper ad revenue in the U.S. was around $45 billion in 2003, but down to $19 billion in 2012.

And in the transportation industry, companies like Uber and Lyft are challenging local taxi services by offering quick digital dispatch through cell phone apps.

Even the diet industry is not immune.

Earlier this year, the CEO of Weight Watchers stepped down amid declining profits at the company.

Some analysts attribute Weight Watchers’ downturn to competition from online sites like myfitnesspal.com, which offer similar services – calorie counting combined with community support – at a cheaper price or even for free.

And the rise of e-mail has been problematic for the U.S. postal service, which ended the 2012 fiscal year with a $15.9 billion loss.

But there is some good news for postal fans: Amazon.com recently announced a partnership with the post office to deliver packages on Sunday.

Because in the Internet age, if you can’t beat ‘em, join ‘em.

http://news.yahoo.com/video/whoknew-...060000893.html