So where does this leave Netflix? Exactly in the same place they’re at now – stagnate and un-advancing. There have been reports that Netflix is working on deals with TiVo for video-on-demand, but does that really matter? You’d be guessing wrong if you think Blockbuster isn’t developing a similar technology with a high-profile electronics partner. So why the K.O. statement? At this point there’s no compelling reason to stick with Netflix. You’re paying about the same price monthly for less. Moreover, if Blockbuster really wanted to put the final nail in Netflix’s coffin, all they would have to do is combine unlimited in-store rentals with their Blockbuster Online service.
Think about it. At this point it wouldn’t be that difficult to create an all encompassing account that would allow users to check-out off-the-shelf movies as many times a month as they wanted and also have the convenience of ordering movies online if they were too lazy/busy to go the store. Bundle that for under $20 and you can start the countdown.
Disclaimer: I do not own shares in either Blockbuster (BBI) or Netflix (NFLX)
Filed in: Content Providers