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July 22, 2004

Blockbuster calls out NetFlix

Reuters.com switched it's tune at the annual meeting and turned Netflix from a "minor threat" into the next area for strategic growth of the company. Blockbuster is promising to beat Netflix at it's own game. In part, they are hoping that bundling store rentals with subscriptions will be a winner. I wonder if these two guys are competing for the wrong market though. How many people are 3 or more rental movie a month people? How many people have $240 a year to burn on movies? I doubt the mass market. That is why Walmart is underwhelmed by the performance of their Netflix competitor (so insiders tell me). Walmart's demographic doesn't have $240 a year to spare.

I am still looking for alternatives.

Posted by Martin at July 22, 2004 7:54 PM

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I'm not sure this stuff will ever replace bricks and morter. It's just too convenient

Posted by: chris at July 23, 2004 1:22 PM

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