Blockbuster and Netflix are two of the most well-known names in the entertainment industry, and both have had a big impact on how people watch movies and TV shows. Blockbuster used to be the leader in the market for renting movies, and it had thousands of stores all over the world. But as digital streaming became more popular, Blockbuster found it hard to keep up and went out of business in 2010.
On the other hand, Netflix started out in 1997 as a service for renting DVDs by mail. Over the years, the company has grown into a major player in the streaming industry, with a huge library of movies and TV shows that can be watched on demand. The success of Netflix has shaken up the traditional entertainment industry and caused a big change in how people watch and listen to media.
Today, Netflix is one of the biggest streaming services in the world. It has millions of subscribers and is worth more than $100 billion on the market. On the other hand, Blockbuster is a shadow of what it used to be, with only a few stores left. The decline of the company is a lesson for traditional businesses that don’t adapt to the digital world. At the same time, Netflix’s success shows how important it is to be innovative and able to change as technology and consumer habits change.
Netflix vs Blockbuster Price
With a Netflix membership, you can watch as many movies and TV shows as you want for $7.99, or you can rent as many DVDs as you want for $11.99. If you want to stream as much as you want and rent one disc, it will cost you $15.98 per month.
For an extra $2 a month, you can add access to Blu-ray discs to your account at any time. Blockbuster charges between $2.99 and $3.99 to rent a single title, $9.99 to rent a single DVD or $14.99 to rent two DVDs, and $10.99 and up to buy a video on demand (VOD) movie.
Netflix vs Blockbuster: Comparison Table
|Business Model||Online streaming||Physical rentals|
|Convenience||Watch anytime||Return in-store|
|Current Status||Dominant streaming platform||Defunct|
|Official link||Visit Website||Visit Website|
Netflix vs Blockbuster User Friendly
As a Netflix member, all you have to do is go online to watch as many movies or TV shows as you want. You just put in a password, and presto. You can watch old favorites or new movies right away on your computer or any other device that works with Netflix, such as an Xbox 360, PS3, Wii, etc.
Users can also ask for a real DVD from their “wish list” to be sent to them in the mail. You can keep the movie for as long as you want because there are no mail-back deadlines or due dates. When you finally send it back, you can order another one.
The new Blockbuster started to catch up to Netflix when its Total Access program started sending DVDs by mail. But now their program also lets them stream movies right away, and if they don’t want to wait for the mailman, they can exchange a mailed disc in a real Blockbuster store.
For its online streaming service, all you have to do is log in to your account and choose the movie or show you want to watch. But it’s a pay-per-view on-demand service.
Netflix vs Blockbuster Analysis
Blockbuster has been in business for about 25 years, while Netflix has been in business for a little more than 14 years. Both companies have different ways of doing business, which is clear from how well they do financially.
(Ireland et al., 2011, p. 105). Because of its age, Blockbuster has a bigger network with about 1700 stores in seventeen countries. Netflix, on the other hand, only has stores in the US, Canada, and a few Latin American countries, while its older competitor has stores all over the world. But the company has plans to grow into Spain, the United Kingdom, and Ireland in Europe.
Both businesses do pretty much the same things. Still, it looks like Netflix has a wider range of services than Blockbuster (Schermerhon, 2011, p. 21). Netflix not only rents out DVDs, but also lets you watch videos online and makes its own shows.
Netflix vs Blockbuster Digital transformation
Always look at how the market is changing and come up with new ways to run the business. You must use new technologies if you want to stay strong on the market and stand out from your competitors.
The story of Netflix vs. Blockbuster shows that you can compete with the biggest competitor on the market and still win and be successful. Companies must come up with the best way to reach their goals in light of the new needs of the Internet.
Netflix vs Blockbuster Compatible Devices
Netflix lets you stream movies on your computer and a lot of other devices, like the Xbox 360, PS3, Wii, iOS devices, some Android phones and tablets, the Windows Phone, some Internet-connected Blu-ray players and some Internet-connected HDTVs, TiVo or Roku, D-Link, and home theater systems from LG, Panasonic, Samsung, Sony, and Insignia. You can also connect more than one device to the same account and move from one device to another without losing your place.
Blockbuster’s streaming service, “On Demand,” works on a lot fewer devices than Netflix’s streaming service. Blockbuster’s online program can also be used on many TiVo DVRs, some Blu-ray players, some connected TVs, and WD TV set-top boxes, in addition to computers. It also streams on some Android phones and tablets, but not on any Apple devices, so the iPad, iPhone, and iPod Touch are out.
Netflix: Pros and Cons
- Ability to download content for offline viewing.
- No commercials or advertisements during streaming.
- Requires a subscription fee.
- Internet connection is necessary for streaming.
Blockbuster: Pros and Cons
- Physical rental stores allow immediate access to movies.
- Availability of new releases sooner than streaming platforms.
- Late fees and penalties for overdue rentals.
- Lack of personalized recommendations and curated content.
Which one should you consider?
The above comparisons are by no means all there are. Even though Blockbuster had a lot of successes, its failures are easy to see, especially when compared to peers like Netflix, which also did well.
Netflix’s success is similar to that of Google and Facebook, two companies that used technology to their advantage. But it would be too soon for any business in the same field to give up on Blockbuster. The company could make a comeback and still get back to where it was before.
They were turned down right away. The CEO of Blockbuster, John Antioco, called Netflix a niche business and said, “The dot-com hysteria is completely overblown,” according to a 2019 book written by Randolph about the beginnings of Netflix.
Blockbuster’s service wasn’t very good, and their prices were too high. Blockbuster charged $5 for each movie, and late fees were especially unpopular. So Hastings used a monthly plan that lets him rent as many movies as he wants with no late fees.