In the two days since Blockbuster Inc. filed for bankruptcy rival Netflix has seen its shares reach an all time high.

On Thursday 23rd September 2010, video-rental giant Blockbuster filed for Chapter 11 bankruptcy reorganization, announcing a number of major studios as its top unsecured creditors.

With debts of $315 million owed to The Bank of New York Mellon, and listing 20th Century Fox Home Entertainment ($21.6 million owed) and Warner Home Video ($19 million owed) among its biggest creditors, growing competition from rivals, and a recent de-listing from the New York Stock Exchange due to shares trading for under 1$, you might expect a repeat of last year’s Woolworths fiasco.

Surprisingly, however, customers are unlikely to experience much change in the services Blockbuster supply. Chairman-CEO Jim Keyes revealed in a statement that gift cards would still be honoured and branches would remain open.

“For more than 25 years, Blockbuster has been the go-to source for the best selection of at-home movies and game entertainment. We are continuing to provide our customers with the same outstanding convenience, service and value that have defined Blockbuster from the start, while we take action to become financially stronger. We look forward to continuing to provide our customers with the best, most convenient access to brand new releases and to continuing to enhance the Blockbuster experience.”

Unfortunately for Blockbuster, analysts report that the debt may in fact be the least of the flailing company’s concerns. With customers renting movies from other sources – Netflix being the fastest growing – Blockbuster has always clung to its brand recognition to see it through hard financial times. Home entertainment experts, however, argue that such brand familiarity can only harm the ailing company.

Blockbuster is still associated with home video, with physical tapes and discs and game cartridges, making the brand as it stands ill-equiped for the fledgling digital age.

Following the news, Netflix has announced a deal with NBC Universal. The multi-year deal will include episodes of Saturday Night Lights being available to stream the day after broadcast and make previous seasons of 30 Rock, The Office, Law and Order: SVU,Battlestar Galactica, Monk and Friday Night Lights available also.

With Netflix shares tripling in the last three years, you might want to redeem those Blockbuster vouchers sooner rather than later.