My Life to Live

Saturday, April 22, 2006

Netflix vs Blockbuster Round 2

Time is right. After almost a month in trial (of Blockbuster service), I'm prepared to lay down my verdict. First, let's do some comparisons that influenced my conclusion.

Envelope: Not surprisingly, Netflix wins the design of DVD envelope. Why? Because they have been refining it for years. In contrast, Blockbuster envelope looks like one of those early Netflix envelopes that need refinements. I don't like top opening envelope and it is harder to rip open their envelopes clean. Moreover, Blockbuster envelope has DVD title/barcode sticker on its envelope that forces me to keep track of which envelope that holds which DVD title. Netflix doesn't have that problem. So Netflix wins this category with ease.

Delivery: Amazingly, Blockbuster wipes the floor in this category. I once returned my 3 DVDs on Monday, the next batch of DVDs arrived on Wednesday. Now, that's fast. I don't think I ever received my DVDs that fast even the early days of Netflix when they sent you DVDs as soon as you clicked the button claiming you dropped the DVDs in the mailbox. I guess the thousands of physical Blockbuster stores are good for something. However, this may pose a problem if you are traveling around, and dropping off your Blockbuster DVDs in different state compare to your home address, delaying the returns. Netflix usually takes 4 days turnaround for me, but my friend tells me I would get faster service if I have 3 DVDs out like my current Blockbuster deal. But I don't care and having different number of DVDs out should NOT hinder your delivery time. Or does it?

Website: Netflix, of course. Blockbuster website, like their envelope, is a generation behind Netflix's. Blockbuster site is functional, but no deep community values or interface that Netflix cultivated over the years. In contrast, Netflix site may well become overwhelm some people with too many options and little pop-ups. So Netflix site wins this round with its good design and deep functionality.

Conclusion: Since I am more conscious of value for my money than anything else, I've chosen to go with Blockbuster and drop Netflix all together. Blockbuster DVDs turnaround is faster, so I can watch more DVDs than Netflix can offer. Although I do not go to a physical Blockbuster store to rent DVDs, their two free rent coupons per month are also icing on the cake. In the long run, Netflix edges against Blockbuster and/or other competitors in this space may become minimal and lock into brutal price competition. It's great for consumers but not so great news for Netflix/Blockbuster and their shareholders.

Netflix may gain another edge as it adopts next-generation HD discs faster than others, courting early adopters like its inception with their evolutionary business model. Therefore, I foresee that Netflix must continually search for more venues to increase its customer base by offering more choices and values in order to stay ahead, or simply survive. (Games? Music? Digital Downloads? Books? Porn?) The media industry is brutal and has short attention span.

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