1. first sale doctrine means they are the lowest cost provider of new rentals. 2. netflix is getting out of dvds...they are losing subs each quarter. so is blockbuster. 3. u need to have a critical density to operate effectively...thus size counts. 4. size also means they can more effectively negotiate with the studios. 5. they have a good recognizable brand.
Size didn't help Blockbuster, Netflix, Hollywood Video or Movie Gallery. Size didn't prevent Warner from imposing a 56 day window on Redbox. It is first and foremost about the studios and always will be.
At 49 years old you would think you would be able to conjure some type of rebuttal, but you further prove my point. Just like blockbuster, netflix, it is just a fad. Yes maybe it is great now and they have a ton of cash, but take a step back and actually think about their business... it's weak man
The CEO yesterday said they have 30 million customers and growing. Many people don't have reliable streaming video (my Netflix streaming video rebuffers constantly and it's aggravating to try to view movies online). Some people go to a location almost every day anyway so getting movies is convenient. New movies on Redbox are available faster and cheaper than other sources. It's a very clear value proposition and 30 million people can't be wrong.