Has Blockbuster Finally Found The Hammer To Crush Netflix? - InformationWeek
IoT
IoT
Mobile // Mobile Applications
Commentary
12/20/2006
03:03 PM
Mitch Wagner
Mitch Wagner
Commentary
50%
50%
RELATED EVENTS
Faster, More Effective Response With Threat Intelligence & Orchestration Playboo
Aug 31, 2017
Finding ways to increase speed, accuracy, and efficiency when responding to threats should be the ...Read More>>

Has Blockbuster Finally Found The Hammer To Crush Netflix?

TechCrunch thinks it has, as Michael Arrington, a self-confessed former "die-hard Netflix fan," notes in a post explaining why he's canceling his Netflix membership. He says the recent announcement by Blockbuster that you can now return mail-order rentals at the store tips the balance. Also helping make Blockbuster more attractive: Allowing customers to use the free rentals for movies or games, generous free-

TechCrunch thinks it has, as Michael Arrington, a self-confessed former "die-hard Netflix fan," notes in a post explaining why he's canceling his Netflix membership. He says the recent announcement by Blockbuster that you can now return mail-order rentals at the store tips the balance. Also helping make Blockbuster more attractive: Allowing customers to use the free rentals for movies or games, generous free-rental coupons, and abolishing late fees.

Arrington spends some time talking about some business practices at Netflix that seem to me to be the company's Achilles' heel: If you are a frequent renter, renting more than five movies a month, Netflix will delay sending you new videos by a day or two, to cut shipment costs. Also, o, if you have a mix of classics and new releases in your rental queue, Netflix will send you the classics faster than the new releases.

These practices give competitors an opportunity to take Netflix down. No business can thrive in the long run if it punishes its most loyal customers.

And video stores offer one service that mail-order services can't offer: immediate gratification. I'm a Netflix customer myself, and I like it a lot. But my wife will be out of town over New Year's weekend, which means it's Bachelor Movie Marathon at the Wagner household. I'll be heading down to Blockbuster for sure, to catch up on the Adam Sandler cinema oeuvre.

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll