Tobin, you're wrong! It is not likely Blockbuster or anyone else can operate like NETFLIX... NFLX uses the mails - very efficient - you don't have to go to some crowded store front, NFLX uses the internet to allow you to keep renters queue - how would WalMart do this & how would they maintain the queue lists - in store kiosks? (haha), NFLX is already the leader in this marketing methodology - what's the learning curve here. This is a true 'INTERNET' business, dealing with savy customers who have no time for lines and trips to the 'store'. We can in minutes, order what we ant form our homes or office desks. No, I don't believe it would be possible to make an entrance. I do think however a buyout is very possible.
I think for anyone to make a profit in this specific market you really have to have your system dialed in to reduce costs at every turn. Blockbuster has the financial backing from mom to attempt it but I just don't think they can pull it off. Amazon on the other hand has the background but their own website sucks so much that I don't even use them for book purchases any longer. As for someone buying nflx I was thinking more along the lines of Viacom. would be a better investment than Blockbuster