We have followed all year, the intense battle for the top spot in online movie rentals. Blockbuster took a stab at bringing Netflix down with some very aggressive promotions. Netflix even made the statement once that Blockbuster "threw everything but the kitchen sink at us'. Imagine their surprise when shortly thereafter, they did indeed receive a kitchen sink from the movie rental giant.
But despite Blockbuster's costly offensive, Hastings said Netflix was on track for net subscriber additions of 1.5 million for 2005 for a total of 4.1 million -- the midpoint of its target range. Meanwhile, Blockbuster, which has been roiled by management and debt problems, saw the subscriber base at its 16-month-old online service stall at 1 million. Chief Executive John Antioco told Reuters that Blockbuster Online was "proud of what it has accomplished in 2005 with over 1 million subscribers in over a year after it was launched." |
A couple things helped Netflix. For one, this is all they do. So they had to stay focused or risk complete failure and the death of their company. Another thing that really gave them a boost, is when WalMart decided to drop out of the video rental market and they directed all of their subscribers to Netflix.
Those interested, can always check for the best deals by comparing DVD rental
packages at http://www.bestdvdrentals.com.
Source: Reuters
