Blockbuster vs Netflix: Which is Better?
Netflix came up with a brilliantly simple concept when it launched its service in 1999: rent DVDs by mail for a flat monthly fee. You choose the movies you want on the Netflix Web site, receive from one to eight discs at a time (depending on the pricing plan you’ve chosen), and–using a prepaid envelope–return them in the mail whenever you’re finished viewing.
The set monthly billing rate means that the decades-old bane of the video store–late fees–is a thing of the past. In fact, not only has Netflix’s pricing strategy prompted brick-and-mortar rival BlockBuster to adopt a “no late fees” strategy at its retail stores, the old-line video rental giant has chosen to fight Netflix as well, offering a very similar online rental service starting in August 2004 that’s since been enhanced by limited integration with its brick-and-mortar video stores.
With retailing superpower Wal-Mart already having pulled out and Amazon opting for digital delivery with its Unbox service, here’s how the two main players in the online DVD rental market stack up against one another.
Side-by-side comparison:
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| Monthly pricing plans (unlimited rentals) | Eight plans, ranging in price from $9.99 for one movie out at a time to $47.99 for eight movies out at a time. |
| Monthly pricing plan (limited rentals) | $5.99 for a total of two DVDs per month (one out at a time); $11.99 for a total of four DVDs per month (two titles out at a time). |
| Distinguishing feature | Each account can have as many as five separate rental queues (with ratings-based parental controls), offering separate viewing choices to individual family members. |
| Number and type of titles available | More than 65,000, including TV shows and unrated and NC-17 movies |
| Shipping centers | 41 |
| Community features | Users can invite each other to join a Friends list, so they can see each other’s rental queues and make additional viewing suggestions. |
| Conclusion | Netflix’s enhanced customization features and extensive catalog will appeal to those who prefer online-only browsing and mailbox delivery. |
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| Monthly pricing plans (unlimited rentals) | Four plans, ranging in price from $9.99 for one DVD out at a time to $23.99 for four DVDs out at a time. |
| Monthly pricing plan (limited rentals) | $5.99 for a total of two DVDs per month (one out at a time); $7.99 for a total of three DVDs per month (one out at a time). |
| Distinguishing feature | Online subscribers are entitled to two to four free in-store rentals per month and can return mailed movies straight to local stores as well. |
| Number and type of titles available | More than 60,000, including TV shows and unrated movies |
| Shipping centers | 30 distribution centers, 200 stores |
| Community features | Currently, BlockBuster does not offer a way for users to share rental information with other users. |
| Conclusion | BlockBuster’s Total Access plans have some nice perks (free in-store rentals and the ability to return movies at local stores) for cinephiles who prefer to mix Web ordering with real-world aisle-browsing, but those advantages come with the same old video-store caveats (in-store rentals are subject to late fees and must be returned to the store rather than mailed) that drove many people to online rental plans in the first place. |
(CNET)
