Netflix VS Blockbuster

Netflix

Even before I read “Why I Am Breaking Up With Netflix” by Michael Arrington of TechCrunch, I was already seriously considering dumping Netflix. I have been a Netflix customer since their early beginning and I have always loved the service. That being said however, I do agree with most of what Michael says in his article.

For instance, when I return more than 4 or 5 movies in a month, I start seeing delays in shipments for my next in queue movie selections. Suddenly Netflix will receive movies I sent back to them a day or so later than usual. If they do receive my movies on time, it will take an extra day or so to send my next movie out. What bothers me even more than that, is the delays in getting the newly released movies which are on top of my queue. All of the new releases in my queue either read “Short wait” or “Long wait.”

From my understanding, they set newer customers to a higher priority for new releases so that they always get them first. Customers who are loyal get sent to the back-burner. While I do understand that getting new business is key to success, I do feel like it’s unfair to the customers who have helped Netflix get where they are today.

All that being said, I have never had a customer support problem with Netflix. Even though a few movies over the years have been lost in the mail, once I report them missing on their site my next movie automatically gets shipped out with no questions asked.

Blockbuster

I had never tried Blockbuster’s service which competes with Netflix, but I recently felt more and more inclined to try it. Blockbuster now allows customers to return movies which they received in the mail, at their local store. When you return a movie, you get to rent another one for free from the store, and Blockbuster will also send you the next movie in your queue as well. Recently they have started allowing video game rentals too, so you can pickup a game in-store instead of a movie - which is just another plus for being a Blockbuster customer.

However, Blockbuster has three big disadvantages as or right now. 1: What Blockbuster doesn’t have yet is the community support that Netflix has. Tools like Netflix Freak for OS X make life easier, and there are a lot more apps around for both Windows and Mac. 2: Netflix still has a much much deeper selection of movies than Blockbuster has ever had. 3: Netflix seems to be quicker to bring in next gen DVD movies(HD-DVD/Blu-Ray), and has a larger selection. Also, Netflix will automatically switch the movies in your queue to your preffered next-gen DVD format automatically.

Knowing all this I signed up for their 2 week free trial and decided to give them a chance. How are their distribution centers? As quick as netflix? How about new release delays? Coming up: My thoughts on Blockbuster’s service compared to Netflix.

Blockbuster claims Netflix is monopolizing online rentals

Is Netflix shipping DVDs that disable DVD players from being able to play movies from other rental services? Or are the new HD-DVD/Blu-Ray DVD players going to come bundled with a Netflix subscription?

According to BetaNews, Blockbuster filed an antitrust counterclaim in federal court on Tuesday, stating that Netflix is attempting to monopolize the online rental business. The article goes on to say that Blockbuster belives that the online movie rental service’s lawsuit is based on unenforceable patents.

Grossman said Netflix’s claims to the “queue” are without merit, as there is no other way for an online service to let customers list what movies they would like to receive. Additionally, lawyers are making claims of “prior art,” which has become a popular defense in cases where a company is seeking to invalidate a patent.

Blockbuster currently has around 1.3 million subscribers, and is trying to gain ground on Netflix, which has nearly 5 million subscribers. Blockbuster has online rentals part of it’s normal business, as in-store sales could drop 25% by 2010.