I wanted to weigh in on the Netflix/Blockbuster comparison. Netflix, at this moment, has very little direct competition. Blockbuster is obviously the major player in video rental, but their business is very different. A similar comparison would be to Amazon vs. Barnes and Noble, Books-a-million, or any other major bookstore. While the brick-and-morter companies have made their way online, Amazon still does it better and is clearly the best in their field. The question here is: can Netflix do the same thing? They have a headstart on everybody in this field. If Blockbuster decides to add this type of business to their video rental store business, it will be a major addition. They can't just take DVDs off their shelves, and start mailing them to people. The fact that many Blockbusters are franchises also complicates the startup. Like anyone who has used both businesses, I recognize that their is no comparison to the personal convenience that Netflix is. While the content is the same, the delivery is a whole new game that I think will win millions of customers.
If NFLX is like AMZN and you are long NFLX, watch out! Losses for the next 4 years!
Of course NFLX is not like an early AMZN since AMZN sold (and sells) while NFLX rents.
I say AMZN could quite easily adopt the NFLX business plan to add a little incremental revenues, if it wanted to. Certainly AMZN has the online ordering, warehousing and direct mail/delivery experience down pat.