We’re a long ways away from digital distribution being the commonly accepted method of media consumption but it seems that an icon of the movie-watching ways of the past may soon be nothing more than dusty history. Investors in movie and game rental chain Blockbuster have been warned that the business might be doomed. Currently they’re trying to stay afloat despite a considerable load of debt, $781 million of it to be precise.

The launch of rental service Netflix was a huge blow to Blockbuster and they responded by abolishing late fees, but it seems that all their efforts might have been in vain. The ability to stream films directly to your computer, dedicated device or Xbox 360 put another nail in the rental company’s coffin. The ease of downloading films via digital cable or a console or other device at equivalent prices erased the appeal of having a local Blockbuster store.

If the rumors are true and Netflix will soon be streamable for the PS3 and Wii as well as the Xbox 360 it seems unlikely there’ll be anything that can save the company.