Blockbuster's Offensive Against Netflix Flops 302
bigtallmofo writes "With over four million subscribers, Netflix was an obvious target for rival Blockbuster. In 2005, target them they did. Introducing their own DVD-by-mail service and (for a while) undercutting Netflix's price point, Blockbuster went for the jugular. A year later Netflix shows a market value of $1.5 billion with no debt compared to Blockbuster's $684 million worth with $1.0 billion in debt. Is there still a DVD-by-mail war or has Netflix won?"
They each have thier own issues to deal with... (Score:5, Interesting)
Re:They each have thier own issues to deal with... (Score:5, Insightful)
It's called On Demand (Score:2)
Well, It's available now. It's called On Demand. I haven't been to blockbuster since discovering it.
Re:They each have thier own issues to deal with... (Score:5, Insightful)
Re:They each have thier own issues to deal with... (Score:5, Informative)
However, despite the nonreality of the 1-day service, I have no problem recommending them. When I used to have their service, I intended to cancel with them before going on a 7 month trip to Europe (mostly because of a lack of anime in their inventory at the time....). Apparently I didn't, when the person keeping my finances in order gave me the CC bills^_^;;;;; - one phone call later, without being put on hold, they gave me my money back in short order without hassle (because there was no account activity) and with still being friendly.
I think the only thing that might occur within the next ten years is that Netflix's current business model will become obsolete (like Blockbusters) due to bittorrent downloads (and if the studios start offering legal ones).
Re:They each have thier own issues to deal with... (Score:2, Informative)
I think it's their fault for advertising it when they know the postal service doesn't deliver it within a day (I don't believe the postal service guarantees or implies 1 day service.)
USPS's fastest shipping option is Express Mail, which is overnight to two-day service (depending on the origin and where you're sending it to) with a money-back guarantee. I haven't seen Netflix's advertising but if they note that proximity to a Netflix warehouse is the primary factor in delivery time, then there's no false
Re:They each have thier own issues to deal with... (Score:2)
Truth in advertising (Score:3, Insightful)
It's called fraud when you sell one thing and deliver another.
Had Netflix sent a letter out to their customers saying "We have to cap the number of DVDs you can rent on plan Y to X per month. If you want to see more than X DVDs then we have these upgrades available," the suit wouldn't have had any basis. However, Netflix advertised they offered "unlimited rentals" on their least expensive service whe
Holy Un-"Settlement" Batman! (Score:5, Interesting)
- Sue a company for something they didn't really do wrong in the first place
- Negotiate a "Settlement" that's really a marketing campaign for that company
- Pocket massive legal fees!
Did anyone read this settlement? If you sign up for it, you get a free month of a one-level upgrade of Netflix service. Then, and here's the cool part for netflix...
After that month, THEY CONTINUE TO BILL YOU AT THE HIGHER PACKAGE PRICE!
What kind of "penalty" is that? Trade a couple rentals to get your customers to upgrade packages? That's cheap advertising is what that is!
Re:Holy Un-"Settlement" Batman! (Score:2)
I spoke to a pro bono lawyer who handles stuff for another website I run, and she advised it was fluff, but recommended I take the name of the firm down, as apparently the BIG firm was using a SMALL firm as a front in the lawsuit, and thereby could claim misrepresentation, lost business, etc.
'Nuff said - the
Re:They each have thier own issues to deal with... (Score:2, Insightful)
I don't understand... (Score:2)
Re:They each have thier own issues to deal with... (Score:2)
Re:They each have thier own issues to deal with... (Score:2)
The two posts that have actually mentioned this phenomenon so far have both been penned by Chris Bradshaw. Apparently he is the sole target of this dastardly plot.
When I first subscribed to Netflix I was renting on average one movie per day (3 at a time, returned 2-3 days later). This lasted several months, until I burned through my initial queue, and now I'm down to a more reasonable 10 or
Re:They each have thier own issues to deal with... (Score:2)
Lawyers 0? Can't say I agree:
If the Court approves this settlement, Plaintiff's Counsel will ask the Court to award, and Defendant has agreed to pay, up to $2,528,000 in attorney's fees and costs.
Netflix... (Score:5, Insightful)
well-positioned for downloadable movies... (Score:5, Interesting)
Netflix has already partnered with Tivo, which already has tivo-to-go that works for the video iPod.... potentially they're ready to roll-out downloadable movies...
Seth
they aren't stupid (Score:2)
iTunes may have a lead in this area, but Apple also has big hurdles to overcome to make a good business out of this; a lot of 320x240 downloads isn't going to cut it.
Re:they aren't stupid (Score:2)
Re:Netflix... (Score:2)
I really wonder to what degree it really is possible for any one company to dominate the world market in most culture- or society-related products anymore.
Its not called "Net"-flix for nothing... (Score:2)
Re:Deal for nothing. Investigation's free. (Score:2)
Re:Netflix... (Score:3)
(yes, I'm a Linux kernel developer)
Re:Netflix... (Score:2)
Right, because no one uses mac.
Re:Netflix... (Score:2)
Re:Netflix...DVD's on wheels. (Score:3, Interesting)
It's not a bandwidth issue, it's a flexibility issue.
Re:Netflix...DVD's on wheels. (Score:2)
Re:Netflix...DVD's on wheels-VOD (Score:2)
Re:Netflix...DVD's on wheels-VOD (Score:5, Insightful)
For the vast majority of consumers, no video rental mechanism is bandwidth-throttled. Consumers don't want an entire station wagon full of movies delivered every night, so the higher bandwidth potential of USPS-delivered movies versus downloaded movies is not relevant to them.
The pacific ocean has a lot more water than lake michigan, but you can't fill up a bucket faster in the ocean than in the lake.
I also think that you'd have a tough time demonstrating that b&m video stores are still in business because they offer the ability to rent more movies at once. b&m video stores thrive because they provide lower latency than the alternatives -- you can walk in without having already decided what movie you want to watch that night. With netflix or other USPS-delivered rental options you have to decide days in advance what you plan to watch.
A download model will combine the best of both worlds -- allowing low latency flexibility of choice along with the convenience of not having to leave the house.
Good show on the attitude, though. I'm sure in some circles that can be an effective alternative to having a well-reasoned position.
Re:Netflix... (Score:2)
Unless you run Linux.
The Red Envelope (Score:5, Insightful)
Yeah a number of people might subscribe to Blockbuster's deal. It might suit them fine. But in this case, Netflix has won the mindshare. Blockbuster is the video store on the corner, and well-established at that; but on the internet, Netflix is the common word. The red envelopes are signature. They've won the highly-important mindshare game, and they appear to be winning the business game, too.
Sure, there are always advantages of one over the other. Blockbuster has instant gratification---I can get the movie I want within minutes. Netflix has wider selection---I can't walk into a BB and find much anime. They also have convenience---I decide on a movie, I can click it and it'll be there tomorrow. And I can procrastinate and watch it when I feel like, returning it when I want. And it's cheaper than the corner store if I watch a lot of movies.
I can't really speak to BB's online service; they might have similar selection and pricing, but they also have the same disadvantages. And after dealing with Netflix ("oh, the movie never came? here, we'll ship you another free of charge") vs Blockbuster ("oh, you returned the movies in the morning, but we didn't notice til after noon... that's $6 please"), I would definitely rather do business with the former.
Re:The Red Envelope (Score:2)
I tried blockbuster for a short time. Their website was ugly and busy compared to Netflix'. But what got me to cancel was the fact a search for Star Trek Voyager showed all seasons except for season 3 or 4 -- can't recall exactly but there was absolutely no way I could find any discs for that season no matter how I tried searching. Either their search engine really suc
Re:The Red Envelope (Score:2)
Blockbuster Online vs. Blockbuster (Score:2)
Re:The Red Envelope (Score:2)
Don't forget, that in the very begining, the envelopes were actually yellow.
Also, when Shrek brand movies come out, they seem to turn green!
Re:The Red Envelope (Score:2)
They can also be a nice big red, or yellow&blue, target for anyone who might want to "borrow" some of your movies. I say borrow because it once took two weeks for BBOnline to update the status of two of my rentals, I sent all three back on a Mon morning, Tues one was received and the other two weren't. I contacted support before reporting them returned but not received. Their status remained sent by BB for a few weeks.
"I can't really speak to BB's online service; they m
Re:The Red Envelope (Score:2)
Re:The Red Envelope (Score:2)
Re:The Red Envelope (Score:2)
Re:The Red Envelope (Score:3, Insightful)
Of course you boil water to make many things, but you don't serve them at that same temperature. Is this concept really that difficult?
Re:The Red Envelope (Score:3, Insightful)
But how much damage did they do to their reputation when they did charge late fees? I will never deal with Blockbuster again because of their policies. I can't trust them to do the right thing. Let's face it - they drove the mom & pop stores out of business but never established themselves as a member of my community. They were stupid not to build loyalty, and eventually they'll go out of business or get snapped up. The only thing is
Blockbuster's many mistakes (Score:2)
Oh, it was worse than that. Long after there were DVD players in all the stores and every movie company had released movies on DVD, Blockbuster still didn't offer DVD rentals at all. I kept going in and checking every month or two. They were literally the last video store in my city to offer DVD rentals.
I tried Netflix because Blockbuster were simply uninterested in renting DVDs to me. I stayed with Netfli
Re:The Red Envelope (Score:3, Informative)
Re:The Red Envelope (Score:2)
I can live with late fees. What I can't live with is late fees that are charged when the movie isn't late. My local library seems to be able to check in a book the same day I drop it off. The same could not be said of Blockbuster. And then, when you inquired about the timing, you were always referred to a manager who seemed to be out for the day. At least with the mom & pop store, you could talk to mom or pop who wer
Th problem is... (Score:5, Insightful)
Re:Th problem is... (Score:3, Informative)
They don't [custhelp.com], nor have they ever, edited movies.
Re:The Red Envelope (Score:2, Informative)
Re:The Red Envelope (Score:3, Interesting)
The Jugular? *snork* (Score:4, Informative)
I've stress tested both. Netflix was able to push out 9 movies a week for 6 weeks, and then throttled down. Blockbuster managed 4 movies a week, for the less that a month I kept them.
Now I just borrow what I want from the library system. Reserve online, get it all pulled and sent to a library near where I am during the day. No limit on the number of DVDs I take out.
Based on my Blockbuster experience, I would not even consider them again.
Re:The Jugular? *snork* (Score:4, Interesting)
Well... There is geexbox... but I really want my remote control...
There's more to it than that (Score:5, Insightful)
-h-
Re:There's more to it than that (Score:5, Interesting)
How about some good old-fashioned "profit"? (And we'll have none of the EBITDA crap either!). A quick look at the charts on Yahoo reveals a $603.30M loss.
Inexplicably their market cap is also about $600M, with a $1200M debt. Now, I have a debt that's more than my income or savings, sure, but it's a mortgage, so my creditors can sell my house and reclaim the money. If they sold the company in parts, assuming that strip-raiding it adds 25% in value over market cap, that still leaves $450M in bad debt.
Of course, it might be that all debt is really from one division (say, the DVD posting division) that they're looking to get rid of. But still, things look pretty bleak, seeing as that debt isn't doing anything right now, and their last investment pretty much failed. This kind of company is usually propped up by their creditors to salvage what potential is left.
Re:Debt is not necessarily bad (Score:2)
Wikipedia - Modigliani-Miller Theorem (Score:2)
But since everything is not perfect, this only sort of applies.
http://en.wikipedia.org/wiki/Modigliani-Miller_Th
Why? (Score:2)
The classic online vs B&M model (Score:5, Interesting)
Recently, I was given a Netflix subscription again and noticed that they've gone through substantial upgrades, added new features and have none of the same queue problems that I exeprienced before. To me, this shows the maturation of the company, because they have the resources now to meet their customer base, given that they are now a very profitable company with the means.
I don't think Blockbuster is going to go kaput over the issue, because there will always be people who prefer a brick and mortar video store or you'll have an occasion where you can't wait a few days in the mail for a video. For this, Blockbuster is king. However, the cost of running a B&M operation like Blockbuster far surpasses an online only entity like Netflix, where store space, rent, maintenance, employees and the like are no longer issues. This means that Netflixs' margins are simply leaps ahead of what Blockbuster could even hope to achieve in their wildest dreams.
So can Blockbuster compete with Netflix? I think the answer is on the walls to everyone. I think this is exactly why Blockbuster tossed everything (and the kitchen sink) against Netflix, because they saw the picture and it didn't look pretty.
Do I think Blockbuster is going to bite the bullet? Not at all. Do I think Netflix will take a giant cut of of their market and force Blockbuster to resign itself to a B&M only operation with limited expansion abilities? Very much so.
Re:The classic online vs B&M model (Score:3, Insightful)
But from what one of the managers said they are about to go out of business. I suspect that Netflix was not the the only reason for Blockbuster to be in decline. I find that buying the DVDs I want to watch is not that bad at the local wholesale club
Re:The classic online vs B&M model (Score:2)
The declining rentals and used movie purchases will compel the MPAA to whine about further lost sales on account of P2P piracy. See? It drove that Blockbuster Video out of business!
No matter what replaces that outlet, you know what will be blamed. it is a lose-lose situation, and you already know who wins.
Pretty expensive though... (Score:2)
I can appreciate that, but buying DVD's even at Costco is about $14-16 a pop. That's still pretty expensive; that's about $60/month to watch 4 movies. It might be cheaper to pay for HBO/Max/Showtime and get a couple dozen movies for about $25/month.
Does Netflix have a future? (Score:2, Interesting)
Re:Does Netflix have a future? (Score:3, Informative)
Rupert Murdoch's DirecTV will begin delivering content from Murdoch's empire, and anything else they can get their hands on, over the DirecTV lines to their DVR, both as trickle download and OnDemand.
Comcast is working on OnDemand.
And then there is the Netflix-TiVO-Comcast arrangement, in
Re:Does Netflix have a future? (Score:3, Insightful)
Re:Does Netflix have a future? (Score:2)
This is going to be the big thing; My Comcast-provided on-demand programming is wonderful - for SD content. I've only had a problem with it once (movie broke up and stopped). DVDs aren't immune from issues either.
But once we start talking HD in some sort of volume, HD-on-demand is probably not going to scale very quickly. Having an early collection of HD discs will convince me to resubscribe to NetFlix (assuming I get an HD DVD player)
Re:Does Netflix have a future? (Score:2)
They have options. They can run their own download service. They can brand another (OnDemand featuring Netflix) or sell theirs out (DirecTV Downloads provided by Netflix). But there are still problems with downloading (bandwidth for most people), and watching (sorry, I want to watch on my TV and I don't want to hook up my Mac to it). However, if they set up a download service right (like caching stuff from my queue onto my TiVo for m
Re:Does Netflix have a future? (Score:2)
Re:Does Netflix have a future? (Score:2)
This is why the TiVo type device is so critical in it. The TiVo or whatever downloads during off hours (which I guess you could specify). By doing this, it could still get things to you faster than the post office (especially since it could download things you shouldn't be able to watch yet, then "turn them on" when you "return" previous things). Plus, because it it caching it to watch later instead of streaming it st
And I really wanted to stay on the sidelines here (Score:5, Insightful)
That said, with all of the comments on which service is better I'd like to weigh in on a few specific points:
First, each service does a good job of what you want it to. Keep a large quantity of movies queued up and they show up in the order you want and you've always got something to watch. Look into who has a better catalog of what you like to watch and stick with them.
Second, each service FAILS when you use it to the limits. I've heard people saying they average 18-23 movies a month with netflix/blockbuster. 18-23 movies!!@?? That's WAY below a dollar a movie, and don't forget shipping back and forth (at least $.60). The idea here isn't to scam the company into a loss on you, the idea is to use a service and have a reasonable good time using it.
Now, I'm all for fairness in advertising (i.e.: unlimited should mean unlimited) but don't complain when you only get 15 movies in one month, for $17. And ESPICIALLY don't complain to me when I know that the majority of the people who are doing this crazy 8 movies a week thing are simply burning every movie right when it comes and then shipping it back the next morning. It is all but impossible to watch three movies a night three nights a week. That is SURELY not what these services were meant to be. You're raising my rates, and it's totally illegal as well.
Re:And I really wanted to stay on the sidelines he (Score:2)
Re:And I really wanted to stay on the sidelines he (Score:5, Insightful)
And for many rural people (who seem to be a large market segment) we don't get much over TV, and the quality is random - sometimes quite snowy. Also, like many others I prefer no commercials, so I like to watch DVDs of a show vs broadcast. And watching one TV episode a night can eat up the slack (I mean, with several people in a household - you might need 2 discs at a time, due to different tastes and more than one TV/DVD player in a house).
So the idea that 18-23 DVDs a month is for piracy is certainly not necessarily the case, especially for a household of 4. Now if you are a single guy with a full time job, and you're doing that you either have no life beyond work and DVDs, or you are pirating them as fast as you can.
But there are many reasons you could turn around 18-23 DVDs in a month as listed above. Especially if one family member (if not all) are somewhat TV addicted(not unusual in the US).
Re:And I really wanted to stay on the sidelines he (Score:2)
I'll bet Netflix is still making money on the people getting 20 movies a month. I assume they prio
The "Video-on-Demand" argument... (Score:4, Insightful)
Couple unlimited rentals with the ability to download the jacket [cdcovers.cc] to any movie ever made... Well I'm sure you get the point.
tried both. blockbuster's UI *sucks* (Score:2)
however, the simplicity and robustness of the user interface from netflix is extremely superior to blockbuster. ratings are much better. watching trailers and reading reviews is easier.
also, there are more categories in netflix. i like to wa
Blockbuster may have a chance... (Score:5, Funny)
Of course, this wouldn't kill Netflix - it would just turn Blockbuster into the world's largest chain of sex shops. But being a chain of sex shops is a better option than going bankrupt.
Re:Blockbuster may have a chance... (Score:4, Funny)
They'd have to change their name to Nutbuster...
Seriously, though, I haven't been inside a Blockbuster since the "No More Late Fees" fiasco.
Re:Blockbuster may have a chance... (Score:3, Informative)
Blockbuster still has one ace up its sleeve - porn.
BB doesn't do porn - they have a 'family friendly' reputation, so no Jenna Jameson for you. Meanwhile, Greencine [greencine.com] does.
Re:Blockbuster may have a chance... (Score:2)
Both have strengths and weaknesses (Score:2)
The thing that tempts me to switch to Netflix is their bigger selection (while both collections are growing, Netflix consistenly has about 10000 more). They have lots of BBC titles (including BBC Shakespeare performances on DVD) that Blockbuste
Re:Both have strengths and weaknesses (Score:2)
At one point, I had occasion to send back 3 each on the same day. Netflix had a new one to me before BB had registered receiving two of them.
I dropped BB after the intial month.
Re:Both have strengths and weaknesses (Score:2)
I've used Netflix for years now, and can't do without, especially the wide selection. The further comfort I have with online commerce (Amazon Prime, eBay,etc.) makes me prefer well-run online options
I am, however a miniscule part of the huge non-online customer base of Blockbuster. It's surprising they could make a loss with such a comfortable, non-technical population
I switched to Blockbuster (Score:3, Informative)
Blockbuster gives two in store coupons every month good for a game or movie rental. With their game rentals hovering in the $8 range, it pretty much pays for itself every month. Blockbuster also credits the value of the coupon against the 'keep it' price for any video or game rented at the store. Good deal (for me at least).
Re:I switched to Blockbuster (Score:2)
Death to Blockbuster (Score:3, Interesting)
But I don't like blockbuster. We'll ignore all the scratched discs and such that the stores would give me (almost no problems in that way from Netflix). I recieved 2 broken discs from BB in about 3 years of renting, compared to 1 in 2 years at Netflix. And if you consider how you get the discs, that doesn't look too good.
But what are their prices now? I'll ignore the "2 day rental" scam they run on popular movies. They used to be $4 for everything. Now they are like $6 for a movie and $8 for a game. EIGHT DOLLARS TO RENT A GAME. I also enjoy how they sell anything you keep out too long to you. That is how their no late fees program works. You can reverse the charge within 30 days and pay a restocking fee, but the fact they don't advertise this fact in that no late fees campaign ticks me off.
Mostly it is the price raises that they keep doing. If it wasn't for video games (I don't get enough time to play them to make Gamefly worth my while otherwise I would HAPPILY subscribe) I wouldn't go near the place.
So, from my point of view, here is what happened:
Never tried BB's program. Never thought of it. I'm surprised it lasted this long. Is Wal*Mart still doing this, no, they sold out to Netflix didn't they?
That's right, WAL*MART FAILED. Surely BB could do it where WAL*MART couldn't.
I've only talked to 2 people who tried BB's program. They both (former and current Netflix subscribers who tried it because of the price) said the selection was worse, the availability was worse, the turnaround was worse. Only the price was better.
And at $2 a month (wasn't that the difference?) no one cared. Netflix later dropped their rates in response anyway, IIRC.
Time to die BB. You're like Radio Shack and Toys R Us. You are not even a shadow of your former self. You're a dead man walking. You can try to switch industries (like RS did) and stay as a bit of a joke (and with their GameRush crud, this looks like their plan), or slowly wither and die (like Toys R Us is doing).
Long live Netflix. They (along with TiVo) have completely changed the way I watch TV. They have a great price for the service, and only continue to impress me.
Re:Death to Blockbuster (Score:3, Interesting)
The very first time I heard about the "no late fees" my first thought was "there has to be a catch". Bo on their website and in their stores, every ad or pamphlet I picked up had fine print describing exactly what would happen an
Re:Death to Blockbuster (Score:3, Interesting)
I have kept a movie too long and had to "sell it back" and pay the $1.25 restocking fee (or whatever it was). If that part didn't exist, I would be thoroughly sick. My family is terrible about returning things on time also (but, that was how they made almost all their money). Even if you waited too long to "sell it back" (30 days after they "sold it to you"),
PeerFlix (Score:2)
See: http://www.ellenburg.org/content/view/17/26/ [ellenburg.org]
PeerFlix not viable (Score:2)
It's a cool idea but I don't think PeerFlix is going to be the c
Having tried both.... (Score:2)
StarTux
Netflix is a red herring (Score:2, Insightful)
No, Blockbuster's latest moves -- mail rentals, changing late fees, rental subscriptions -- have all been lame attempts to fend off a m
Never mind the profit, feel the revenue? (Score:4, Insightful)
Let's see... A billion dollars of revenue and big losses, or a tenth of the revenue and millions in profit...
Or people who want to watch their movies uncensored. Or people who care about video quality, and don't want to pay out the ass for HD. Or people who actually like the extra material found on DVDs. Or people who feel they already pay too damn much money to the cable company, who keep jacking up their fees every quarter, unlike Netflix.
Netflix (Score:3, Insightful)
I have had some annoyances with Netflix though - damaged (out right broken or cracked DVDs) are about 15% of what I recieve, and sometimes I have to wait several days to get a movie from across the country. But all in all it is super convenient compared to the alternatives, and very inexpensive for what you get.
I suspect that Netflix is in a great position now because it would cost a heck of a lot of money to start up a competitive service.
Re:Netflix (Score:2)
I don't want to re-buy when HD-DVDs become available either. That's why I'm still buying DVDs.
That is, when HD-DVDs become available they will be so crippled with DRM I won't want to buy them. DVD is quite good enough with a good upconverter, so...
One Case Study (Score:2)
Hollywood Video (Score:3, Informative)
I would never use Blockbuster (Score:2, Informative)
If a movie has scenes that are offensive to the ownership of Blockbuster ( usually sex, they don't seem to have a problem with violence, go figure ) Blockbuster reserves the right to edit that scene out of the movies they rent.
While they will admit to it if asked directly, they will not advertise it in their stores.
Apparently telling the truth (fairly representing their products) values of Blockbuster's owners.
It's only a matter of time... (Score:4, Interesting)
Re:It's only a matter of time... (Score:2)
I've tried both (Score:3, Interesting)
I think if blockbuster leveraged it's brick and mortar more, they'd cut into netflix's market share quite a bit.
What Blockbuster should do. (Score:3, Insightful)
Offer customers both the option of sending it back by mail or returning it back to a local store. That's an advantage of having a local store in almost every city which Netflix doesn't. Of course, if convenience is your thing, you're still allowed to drop it in your mailbox and have the postal service ship it back. But by offering both return methods, both parties will benefit from the user returning to the store. The user's queue will be emptied by the following day (instead of waiting ~3 days for the mail to be delivered and scanned), therefore that means more movies per month. Blockbuster saves money by shipping all the dvds back to the central office together, saving on shipping.
Another feature they can offer customers is the option to allow the subscriber to have 1 dvd out from the local store at any given time. They can even subtract that 1 dvd from the # of dvds they can have out at a time. They can even restrict it to 3+ months old movies, where if the subscriber wants to watch newer movies, they'll have to go through the online store. I mean, every Blockbuster has a bunch of movies that hardly ever circulate much. There's really no point in letting them sit there to collect dust. By allowing users to have access to the local store, this will make them happier and actually give those old dvds some worth in the store. Sometimes you might want to watch a movie that night, but neither netflix or blockbuster would fix that. If the 1 dvd out at a time is too much, you can restrict it to x dvds from local store / month.
Just my 2 cents.
Returning to the actual question... (Score:2)
That's a dumb question. What major market for any product has only one supplier (besides government)? There's room for both and more. Must be a slow day at Slashdot to put this up front...
was there ever really a war? (Score:3, Interesting)