No, I'm saying that Blockbuster wasn't _really_ competition, in the sense that it wasn't really a fight. Not from Netflix's perspective, anyway, from Blockbusters perspective it was the fight of their life. In my view, they weren't joined by a newcomer, they were just flat out replaced.
Netflix came along and offered an alternative product that was better and achieved the same purpose. They didn't open a rental store across the street from Blockbuster and out-compete them on those terms, they replaced the entire video rental paradigm with a whole new business model.
I admit this is a fuzzy point, and just my own opinion on what constitutes "real" competition. But I hope you get what I'm saying. They "competed" in the same way that the automobile competed with the horse and buggy. Blockbuster didn't stand a chance of holding onto the market with the traditional brick and mortar stores, and by the time they put out a copycat DVD-by-mail service they were already circling the drain.