We haven't changed out business model per say. But expanded it.
The drastic (as I see it) change has been the way they "eliminated" late fees, with the catch being that your late fee was if you kept the dvd too long you got charged for it and could keep it. Then they changed that again and said that if you keep a disc you got from the store, it counts toward your X movies per month plan. Both of those policies kinda leave the customer between a rock and a hard place (IMHO). Look at how much the rental policy for netflix has changed over the same period of time (it really hasn't, with the exception of adding blu-ray and hd pricing).
We offer an online service to combat net flix.Not sure how its worse?
I said it was failing, not that it was worse. I read somewhere that it was failing. I could be mistaken though.
The only better thing between the two was that Blockbuster allowed me to take the mailers back into the store to get another movie while I waited for my next to be mailed to me.
The in-store crap can be nice, but it's HUGELY dependent on the quality of the BBs that surround you (the ones near me suck). Netflix's instant viewing (while kinda crappy sometimes, with DRM and performance on slower machines, and lack of native support on PS3) pushes netflix waaay into the lead (for me). You didn't mention that one!