Online DVD rental war heats up with price drops

I was thinking about going with one of these online plans. Are most people happy with netflix?

I refused to go with Blockbuster becuase they are the Anti-Christ. So I went with Netflix, I was pretty happy with Netflix. But toward the end of my time with them the movies started coming later and later. It started out i mail them and got only a 1 day gap till i got my next movie. a year later I sometimes waited 2 or 3 days even between. That's too long, and they need to tighten it up if they want to wrangle with Blockbuster. I also thought they'd do even better if they bought Gamefly and incorporated that into their product.

As a former manager in video store chains for 5 years, I have to say that every year the video rental business model is in decline. The model itself was marginally profitable in the days when VHS was king, as stores like BlockBuster would receive "Movie A" weeks in advance before retailers were able to sell them. (Remember movies taking years to get to PPV, HBO, then network TV?)

The DVD era shattered the typical rental store business model. DVDs began to sell on the same "street date" as you could rent them, and at an affordable cost, a consumer could own the movie for little more money than what it costs to rent them.

Even the "Previously Viewed" money making scheme had been tarnished, as BlockBuster, Hollywood and others could make back a large part of their initial cost by selling overstock of a movie at a price comparable to what the chain originally paid a distributor for it. (VHS tapes were sold at a much higher premium by the distributor, to the chain, however, when a movie was released for rental before it's actual retail "street date".)

Although the Blockbusters of the world could now stock more DVD movies, they also had the dilemma of having to raise the cost of the rentals in order to keep in line with their operating costs. All you have to do is look at ANY of the chains and see that they are all in financial trouble.

Netflix gains an upperhand by keeping all of their inventory in one centralized warehouse and using a website as their storefront, while collecting a streaming revenue and advertising "no late fees."

Blockbuster is trying to recoup some of their cost by entering the online world, however, they still may have a dozen stores in one market that Netflix can service with ONE warehouse. Blockbuster can create a faster turnover time with their brick and mortar stores, which has lured some customers over to their side.

If you've read this far, you may be able to agree with me when I say that traditional, stand-alone, movie rental stores may soon become a thing of the past.

im happy with blockbuster online only because i was grandfathered in to two free monthly game rentals with my plan.

for 22 a month i usually get about 12 movies and 2 games, new realeases that i keep for the month. almost like a second gamefly.

isn't this old news, I could've sworn I heard this already...

I am very happy with my Blockbuster.com and in store service, despite all the horrible things I see written about them here. The movies come quickly, and as soon as I return one to the store it is listed as returned on my online queue and another is mailed. They could be more efficient with the speed of stocking Blu-Ray and HD-DVDs, but that will come in time.

Also, Netflix is fine, too. I had them and was very happy. I switched because of Blockbusters in store offers, not because Netflix was doing something wrong. My Dad has Netflix and thinks they are a little faster in delivery than BLockbuster. Also, it was mentioned that Netflix has only one centralized warehouse. They have warehouse sites all over the nation.

I have had netflix for a few years now and have no complaints. I have also had blockbuster for a number of months to try it out and because at the time, they had a few titles i couldn't get from netflix. (Netflix has all of those titles now) Blockbuster's service was okay, just not as refined as Netflix. Getting in-store coupons from blockbuster just made me feel that i had to go to the store and use it just to get my money's worth. Not wanting to go to the store was the reason i started these services in the first place, so this seemed a little backwards.

Originally posted by jookycola:

---

I refused to go with Blockbuster becuase they are the Anti-Christ. So I went with Netflix, I was pretty happy with Netflix. But toward the end of my time with them the movies started coming later and later. It started out i mail them and got only a 1 day gap till i got my next movie. a year later I sometimes waited 2 or 3 days even between. That's too long, and they need to tighten it up if they want to wrangle with Blockbuster. I also thought they'd do even better if they bought Gamefly and incorporated that into their product.

---

Originally posted by loxley32:

---

Also, it was mentioned that Netflix has only one centralized warehouse. They have warehouse sites all over the nation.

---

I don't see how you can compare Netflix to Blockbuster. I get 3 in the mail watch them take them down the street swap for 3 new releases. And end up getting twice as many movies than I was getting from Netflix. Older movies online new releases in the store what more can you ask for. Blockbuster gets my vote.

lets not forget about netflix vod

Quote:

---

After a loss of $49 million in the first quarter of this year, Blockbuster has said they will be modifying their service ``to strike the appropriate balance between continued subscriber growth and enhanced profitability."

---

Originally posted by jookycola:

---

But toward the end of my time with them the movies started coming later and later. It started out i mail them and got only a 1 day gap till i got my next movie. a year later I sometimes waited 2 or 3 days even between.

---

Hard to say which one is better there just different. Blockbuster, can give you quantity. Netflix, more quality, but I've gotten a few scratched up discs. I say interchange them, GO with Netflix for a while put the account on hold, and then switch to Blockbuster for newe releases and in-store exchange.

CJ

Netflix is great. I get a two day turn around. Basicaly return on Monday and receive by Thursday.

Wonderful selection of films that are often impossible to find at video stores. The selection alone is what makes the service worth while. I still occasionaly rent from the brick & morter, but that is not the norm.

I do wish that they would also rent PAL and other harder to find films that are available in Europe but not here. Of course, there is the region code. No way around that is there? ;-)

The number of brick & morter stores will diminish, but will not disappear altogether, imho. There are now way too many Blockbuster video stores to remain competetive for a public company. The mom & pop stores that cater to special markets will do OK. There is one video store down the road from me here that rents VHS and Laser that are very hard to find. They draw from many miles for that reason. They're not getting rich, but they are doing what they like.

Cheers...

Netflix is way better overall basically due to the fact you can get just about anything from them. Badbuster doesn't even come close to offering the amount of movies Netflix carries. Also Netflix web site is much better then Badbuster. Either will sit on your selections if you turn movies around fast, I guess they are worried about ware and tear on their discs. Its nice being able to go to the store and pick up a new release but how often is there a good one to get, which is the only way to utilize that feature. One thing I learned early about Netfilx is DON'T use their email support for anything other then there prefab'd situations always call for help if you have a major problem, I don't think the email support personal know how to read or comprehend a problem.

Today I heard Blockbuster is now lowering their service a buck due to Netflix's price drop, maybe next month they'll drop another buck.

It's really nice to see both Blockbuster and Hollywood Movies get beat up by a competitor after they bought out or drove many other better Video stores out of the business.

Netflix absolutely has better selection. I mean its so one-sided its unbeleivable. But Netflix isn't so good with New Releases. ANd although you can get anything, I've gotten a lot of old movies that look like they've been used for coasters at every bar in New York; that's not Netflix's fault all the way, but there is a trade off. I've used the Blockbuster in-store exchange and the amount of movies that I got, with some old ones, was astounding. Another feature that people might not know about Blockbuster, is that on some movies you have the option to pick between different versions of a dvd. You could pick the Special Edition, or the Collector's Edition, thats very cool. Trust me, I hate blockbuster, but I got to admit they're online package isn't that bad. I feel both Nflix and Bbuster have strengths and weaknesses.

I love Netflix. Been with them for over 2 years, still get a day or two turn-around. Looking at my rental history with Netflix I average out to about 15-18 movies a month (with the 3-at-a-time plan), so that equals out to about a $1 a movie.....not bad in my opinion.