I do not own this stock but I have followed it the past few months and have used the service.
The blockbuster news reminds me of when EBay first came on the scene and everyone was thinking anyone can duplicate EBay's business model especially the big and more established companies (i.e. Yahoo, Amazon, etc) and Ubid.
Well look at EBay now. It is worth $58+ billion in market cap, which is the save value as Oracle, the world's 2nd largest software company behind microsoft.
I'm not saying NFLX can duplicate EBay. I'm merely saying the predicament of the company is the same with a "new" online business model. All the big boys want a piece of the pie but they end up closing shop sooner than later.
It also happened to Etrade. It has survied and thriving and is now one of the best financial services firm out there.
Just my two cents take it for what it's worth and smile :)
Ebay is in a new market where no giants dominates. Netflix is in a field already dominated by Blockbuster. Walmart copied Netflix. www.Greencine.com is using the same thing. Blockbuster is copying Netflix too. And they all undercut Netflix on price. Etoy is more like Netflix, it competed against Toys'R'us and Walmart and went belly up.
c'mon now all netflix does is mail out dvds. virtually no customer service exists. i should know, i've been a subscriber since before the company went public. i've stuck with them only because there was no other viable alternative.
as soon as blockbuster rolls out their online service i will switch without any hesitation. why? not because its a few bucks cheaper but because blockbuster is 2 mins away and from what i understand, i will be able to return a rental received in the mail at the store 2 mins away which means a lot since the next item on my list can be sent right away rather than the 3 or 4 days it takes to be sent because of having to mail it back or if i found something at the store, i can get something on the spot. another added bonus is that blockbuster will have a wide array of video games too for all popular platforms. netflix does not offer games.
i don't think this contest will even be close. blockbuster will kill netflix.