Blockbuster Trumps Netflix Again -- How Sad

Netflix is and was a great idea and a great company. It changed the way we think about video and about home movies. It changed and enriched our lives. But, sadly, Netflix will in time become a footnote in history. Blockbuster just has too much money and is too aggressive a competitor and will increasingly beat Netflix out. A new acquisition undercuts Netflix still further and may be the final blow.

Netflix is and was a great idea and a great company.  It changed the way we think about video and about home movies.  It changed and enriched our lives.  But, sadly, Netflix will in time become a footnote in history. Blockbuster just has too much money and is too aggressive a competitor and will increasingly beat Netflix out.  A new acquisition undercuts Netflix still further and may be the final blow.There is no question that video rental stores and, even, video rentals through the mail will give way in time to the internet and downloading of videos directly to computers and TVs.  Yesterday, Blockbuster announced the acquisition of MovieLink and, by so doing, its plans to get into the business of offering downloading services (to computer and other devices now and to TVs in time).  Netflix has known this to be the direction of the future and has been testing and experimenting with downloading too.  But with this acquisition, Blockbuster will be able to leapfrog Netflix and others and command this space.  Too bad.Blockbuster's stock rose almost 8% yesterday.   Even with the current volatility, Blockbuster continues to hold its own while Netflix suffers substantial declines. 

 

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Comments

  • BradS

    August 10, 2007

    The game is not over yet. Let's see what Netflix can do. I still don't think Blockbuster will be nimble enough to win this one.

  • JoeNPhilly

    August 12, 2007

    I saw NetFlix's CEO on CNBC explaining that NetFlix has no plan to deliver through anything other than mail and that they believe that they will remain competitive because of their selection. Either the guy is deliberately not disclosing their competitive strategy or he is very unprepared to lead the company. I would agree that right now, Blockbuster looks to making an extraordinary comeback.

  • Netflix

    March 05, 2009

    Oops. Bwahahaha!

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