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.