Tuesday, March 8, 2011

Questions about Netflix?

I had a comment posted from fellow blogger about Netflix and Blockbuster, here is the comment:

I have been thinking lately about if/when Blockbuster will go under because of the serious competition from Netflix. I subscribed to Netflix for about 3 months, however due to my infrequent movie watching, I decided it was a better deal to rent from Blockbuster since I only periodically rent movies. What are your thoughts on this Patrick? Will Blockbuster find a way to stay relevant or will its members continue to remain faithful despite the convenience of Netflix and iTunes selling/renting movies?
Look forward to hearing your thoughts on the matter! Make sure to check out my blog at

My family has had Netflix for some time. At first, we used the DVD rental service almost exclusively. Over the years, however, Netflix has worked hard to make their "Watch Instantly" service one-of-a-kind. I have not watched a real DVD in about 6 months. Anyone that subscribes to Netflix should consider trying to watch all your favorite movies and shows over the internet instead of waiting for the disc to come in the mail. Netflix allows for a stream only service for a couple dollar savings per month that could make the deal a little sweeter for people that do not watch a lot of movies.

In my opinion, Blockbuster is dead. They cannot compete with Red Box in the local DVD rental market, and they can't compete with Netflix in the Internet streaming market. Their business plan relies on expensive buildings staffed by employees. Red Box allows for the same DVDs through a vending machine, for a much cheaper price. The only advantage Blockbuster has over their competitors is that they carry a wide selection of older movies. Also, Blockbuster has had time to develop a strong customer base. I do not believe this to be a great advantage, however, because most people don't care where the movie comes from, as long as it's the movie they want to watch.

Now, onto iTunes. This is huge rip off. Apple does movie rentals through iTunes for $3 or $4, depending on the movie, while Netflix charges $8 for unlimited streaming of movies and TV shows. The story on the internet is that movie rentals over iTunes is not going so well, which anyone can see why. You can pay $8 for all the movies you want or $4 for every single movie.

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