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Netflix vs Blockbuster's future online store

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Netflix vs Blockbuster's future online store

Old 07-09-04, 10:59 AM
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Netflix vs Blockbuster's future online store

This has probably been discussed before, but does anybody have any thoughts on how Blockbuster will do when they launch their online rental store?

Do you think Netflix will get its act together and start shipping their movies faster/more efficiently? I assume BBV will offer a better price than Netflix to attract customers, and since BBV can ship from all the local stores, that's easily a 1 day turnaround for almost anyone who has a BB store in their neighborhood.

It will be interestng to see what happens. I'm looking forward to seeing them compete for business.

Related story:

http://msnbc.msn.com/id/5396665/
Old 07-09-04, 12:00 PM
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I couldnt really see it doing all that great, unless its significantly cheaper than Netflix. Netflix is quite quick for me, and the selection is unbeatable. I am the kind of person to stick with what works, unless something gets screwed up or the competition is that much better...IMO netflix is great, so i wouldnt have much of a reason to switch.

I didnt notice in the article if BB would be shipping from the stores, or from DC's like Netflix. I think BB would be better for those renters that dont live near a Netflix distribution, but do have BBs around.
Old 07-11-04, 06:18 PM
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Originally posted by Tony Dvdfan
I couldnt really see it doing all that great, unless its significantly cheaper than Netflix. Netflix is quite quick for me, and the selection is unbeatable. I am the kind of person to stick with what works, unless something gets screwed up or the competition is that much better...IMO netflix is great, so i wouldnt have much of a reason to switch.

I didnt notice in the article if BB would be shipping from the stores, or from DC's like Netflix. I think BB would be better for those renters that dont live near a Netflix distribution, but do have BBs around.
I live In Columbus, OH and I was a Netflix member late last year and earlier this year for about 6 months. When I first signed up they were shipping discs from Chicago, and I'd get them in 2 days, sometimes even 1 day. They opened a DC in Cleveland and I started getting the discs from there. You'd think they come faster, but they actually slowed down quite a bit. Could have been because it was simply a new DC.

I am thinking about signing up with Netflix again to see how the shipping is, and I might try Blockbuster's service if the price is right. I had read in another article a few months ago about Blockbuster shipping from the local stores. Not sure if that is still the case.
Old 07-12-04, 10:35 AM
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8 months with Netflix and nothing but blazing fast service. I can't imagine how they could be any faster in my area.

I didn't read the article, but sending from local stores doesn't make much sense. The local Blockbuster near me has a wretched selection compared to Netflix's distribution center.
Old 07-12-04, 03:49 PM
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My understanding is that BB is going to use their stores as shipping centers. It is one of those ideas that sounds fantastic on paper, but ends up getting executives canned for greenlighting such debacles. (Did You Know? -- The executive at Pepsi that began the practice of putting expiration dates on their products was fired shortly afterwards. As you and I know, that expiration date has very little to do with the taste and quality of the product -- I'm not saying that the product doesn't go bad, but it lasts longer than that magic date printed on it. -- Anyway, Pepsi vendors were returning perfectly fine product at record rates because it had passed the date on the bottle. Record returns = major costs = no more job!

Personally, I see it becoming a logistics nightmare -- stores can only hold a finite amount of product that must be merchandised to appeal to the foot traffic that comes in. It is very difficult to keep live customers happy when they are continually coming in looking for a certain movie and the retailer has absolutely no idea when the movie will be coming back. You cannot run a retail store the same way that you run a warehouse.
Old 07-12-04, 09:06 PM
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Originally posted by Abob Teff

Personally, I see it becoming a logistics nightmare -- stores can only hold a finite amount of product that must be merchandised to appeal to the foot traffic that comes in. It is very difficult to keep live customers happy when they are continually coming in looking for a certain movie and the retailer has absolutely no idea when the movie will be coming back. You cannot run a retail store the same way that you run a warehouse.
I agree, this is actually the first time that I am aware of BB's online foray.

I don't know if it will do well. On the one hand Netflix seems to have a good system down, but on the other hand BB has the name brand Blockbuster. That speaks volumes. Especially when few of the general public know about Netflix. They really need to push themselves in order for their name to be recognized with the product ie Kleenex, Xerox, Tivo etc.

I am new to the DVD mail in rentals as I have only started my second month @ Walmarts program. So far I am liking it. I've never used Netflix before and went with Walmart because they have a whole month free and are cheaper.
Old 07-13-04, 01:12 PM
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Originally posted by tanman
II don't know if it will do well. On the one hand Netflix seems to have a good system down, but on the other hand BB has the name brand Blockbuster. That speaks volumes. Especially when few of the general public know about Netflix.
That is what BBV is banking on, their name. Did you know that their name recognition and database is worth more than ALL of their physical ownings (real estate, movies, buildings, shelving, computer systems, light bulbs, carpet, etc.)?

They also are thinking that the only investment that they will have to make is the software. They don't realize that their product purchases will have to increase as well.

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