Reports say Netflix shares skyrocketed to an all-time high on Thursday, as official news of Blockbuster’s bankruptcy circulated. With speculation that Netflix would nab more than just a handful of Blockbuster’s customers, shares hit a record high of $163.72, and closed out the day at $3.54 and $160.47.

Blockbuster, who plans to be back in business after completing the Chapter 11 process, hopes to cut their $1 billion debt down to around $100 million. Mashable reports that the majority of Blockbuster’s accumulated debt is owed to major motion picture studios like Fox, Warner Brothers and Sony Pictures.

As Blockbuster reorganizes their platform, they plan to return to do business, focusing on online rentals, but it’s hard to imagine them being able to profit while competing with cheap alternatives like direct-streaming from Netflix and $1 rentals from thousands of RedBox locations across the United States.

At present, Netflix dominates the entertainment distribution platform, providing their subscribers with convenient options that don’t even require them to leave the house. Online streaming direct to your computer or television, or returning DVDs through the mail is a huge perk for those too busy to hit video stores or even the local RedBox. While RedBox allows you to shop online and have the movies you want delivered to the RedBox location of your choice, you’re still required to leave the house to pick up and return the videos. One major perk for the RedBox is the low cost of rentals, being just $1 plus tax, but not returning the video after 24 hours racks up extra charges you don’t get with the mail-back rentals from Netflix.

With Hollywood studios relying heavily on earnings from those who distribute their movies, having multiple sources to draw income from is their best option, according to Wedbush Morgan Securities analyst, Michael Pachter, so Blockbuster’s recovery is imperative to increasing Hollywood studios earnings overall.

Personally, I have not set foot in a video store since our local Movie Gallery went out of business over the summer, and we stopped by to pick up as many cheap used movies as we could carry. I haven’t been to a Blockbuster video location in over five years, and have relied on Netflix, RedBox and Hulu for my personal entertainment needs.

I have a hard time believing Blockbuster can recover from bankruptcy and wedge themselves back into the competition in time to come out on top.