Blockbuster's noose?

After reading the article "Netflix has Blockbuster on the ropes" I'm curious if it is more like Netflix has Blockbuster in a noose...

Can Blockbuster still compete with Netflix? What do we think of Blockbuster's ability to also compete against Red Box? Seems to me like a typical example of "Creative destruction"...

A check of BBI's financial statements and market price yields some interesting questions, what kind of growth rates would be required for BBI to pay "healthy" dividends?