My Life to Live

Wednesday, April 05, 2006

Netflix vs. Blockbuster

Now that I'm preparing myself for the imminient launch of HD-era, I stopped buying DVDs. (I think I'm not the only one thinking I would have to restock my collection with next-gen discs with blu-ray capable Playstation 3 in near horizon.) So, I rejoined Netflix to supplement my DVD fix every month. I never liked tracking to local Blockbuster because they were all so corporate and had bad experience with their late fees. I loved Rentertainment when I was in college and I rarely went to Blockbuster if I can help it. Anyhow, now that Blockbuster is in DVD mail rental business, with Netflix growth getting slumping with increasing competitions, Netflix sues Blockbuster to shut online service.

Thanks to this post, I signed up for free Blockbuster trial, and the DVDs came in today, fast. The Blockbuster envelopes open on top, instead of sideways of Netflix envelopes. Blockbuster envelopes are smaller and their constructions are more sturdy. And they throw in 2 free e-coupons for in-store rentals on top of mail-order rentals. Competition is good. With deals like this, the DVDs and the movies themselves have to reach high and prove their worth to own them. That's why I still buy Criterion DVDs time to time.

I guess this will be all irrelevant when digital distribution hits full stride.

posted by Calvin C. CHOI at 1:44 AM

1 Comments:

  • A Side-by-Side Comparison and Conclusion

    When comparing Netflix with Blockbuster Online, there are so many similarities that it may seem like a toss-up. The giants of the online DVD rental explosion are feeding off each other's ideas, spawning lawsuits and smearing campaigns that rival the cola wars of the mid-1980's.

    Both programs allow us to pay a monthly fee, for which we receive DVD movies sent through the mail. When we return them in the postage paid envelopes, we receive more DVD's. It's an ongoing cycle that fits almost perfectly with the current American need to get the most out of the least -- more movies for less money, less effort, and less time.

    Side by side, they are almost identical, but here is how they stack:

    Speed of Delivery
    Netflix used to have the clear edge here, but expansion to include more distribution stores has brought Blockbuster up to par. Still, for those who rent less, Netflix "ramps" the movies to these higher priority customers, pushing the heavier renters further down the list. To this, they have admitted. Blockbuster has not admitted to this practice, but their denials are not firm. Still, Netflix will have a higher overall percentage of 1 day turns on movies than Blockbuster.
    Edge: Netflix

    Cost
    There is not a current difference in cost, though this seems to change every few months. When one lowers, the other matches. When one raises, the other follows. It is similar to airlines manipulating the markets towards their own unintended dooms. In the short run, Blockbuster offers a free month while Netflix offers 2-weeks. Blockbuster also has a customer service crew that offers discounts and "mishap compensation" more easily.
    Edge: Blockbuster Online

    Selection
    Netflix is approaching 60,000, while Blockbuster is closing in on 55,000.
    Edge: Netflix

    Website
    From talking to many users, it seems that while the concepts of listing movies on a queue and searching for movies in several different ways is the same for both, Netflix has the superior overall layout and useability. Its website seems smarter, though sometimes a bit slower during peak periods.
    Edge: Netflix

    Fringe Benefits
    Netflix has none. What you see is what you get. The fact that Blockbuster offers a free in-store rental every week is extremely helpful in getting the newest releases. With both programs, you sometimes have to wait weeks to get the hottest titles, even if it is at the top of your queue. Being able to walk in and grab that week's best title is something that Netflix cannot touch.
    Edge: Blockbuster Online

    Intangibles
    Netflix has more experience with online DVD renting, both in regards to time and sheer mass of customers. Blockbuster, as mentioned before, has superior and more responsive customer service. Having a human being available at the local store to help during problems is a big benefit. If there was a large enough gap in any of the above mentioned criteria, I would say that they supercede the intangibles. In this case, there is no substantial difference. The more human aspect of Blockbuster makes it the choice.
    Edge: Blockbuster Online

    When all is said and done, Blockbuster online seems to be the choice. I would suggest doing like me – try both. Just email me and I'll send you a promo code for a free month of either or both.
    fedexkinkos1@yahoo.com

    By Blogger shilohope, at 6:04 AM  

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