The free market and consumers have spoken. Blockbuster failed to keep pace with trends and technology and has suffered the consequences. And, to think it once was approached by Netflix, with the latter company offering itself for sale for a song ($50 million or so).
Maybe Obama and the Democrats will deem Blockbuster to be "too big to fail" and too valuable in terms of unionized employee votes, and arrange for a taxpayer bailout, or government acquisition, as with GM and Chrysler. Stranger things have happened.