Blockbuster is scrambling. So much for its “no late fees” marketing campaign. Not only is Blockbuster being sued for false advertising (because “no late fees” really means an “8-day grace period”), but there is now talk of retracting the “no late fees” policy altogether.

Couple this with the presence of “on demand” movie services offered through Direct TV and satellite/cable providers, plus competitor, Netflicks, growing more and more dominant as a more convenient Blockbuster alternative, how long can Blockbuster possibly survive?

To have any hopes of survival, Blockbuster is going to have to understand the critical impact that technological change is having on its business (and much more than VHS to DVD). As technology continues to influence consumer behavior, Blockbuster will need to follow its customers and adapt as consumer convenience and availability needs evolve.