Antioco also stated that the company gained 800,000 new subscribers during the quarter bringing their total close to 3 million. He said the company hopes to reach 4 million subscribers by the end of 2007.
Although Blockbuster had a greater growth than Netflix did for the quarter, Netflix's 6.8 million subscribers still dwarfs that of Blockbuster.
However, the growth is coming at a price. The company's new Total Accesss Program, which allows users to return their online rentals in-store in exchange for a free rental is very costly. Blockbuster also runs the risk of cannibilizing their brick and mortar rental store business, as online rentals skyrocket and in-store rentals shrink.
Blockbuster also completely lacks a download service which Netflix has (although it is in early development) and as time passes and more and more users move onto downloading over physical discs, Blockbuster will be forced to play catch up again.
Source:
Arstechnica