business news in context, analysis with attitude

It wasn’t enough that a few months ago, Wal-Mart decided that Netflix had a pretty good business model and deserved a little competition from the world’s biggest retailer.

Now, Blockbuster has decided to get into the act, and will launch a flat-fee DVD rental service to compete with both Netflix and Wal-Mart sometime next year. Blockbuster reportedly believes that as many as two million of its customers will use the service once it begins.

Netflix charges $19.95 a month, with no late fees. Wal-Mart undercut that price, charging $18.86 a month. No word yet on what Blockbuster plans to charge.
KC's View:
It wasn’t that long ago that Netflix had this business pretty much all to itself. These days, the company has to be wondering what it has to do to get a break.

However, we have confidence in the company -- beyond the fact that we use its services regularly, and refuse to convert to Wal-Mart despite the fact that the Bentonville Behemoth is cheaper. (You have to have some loyalty…) We remember that the company’s CEO once said that Netflix is in the business of delivering entertainment…not in the DVD rental business…and is fully prepared to switch venues and technologies whenever appropriate.

We like that kind of attitude.