Blockbuster vs. Netflix: Which Online Rental Service is Better and Why?

I am a devout Netflix (NFLX) user. My coworker, Andy, raves about the new Blockbuster (BBI) service. For today’s post we were able to take a closer look at the habits of the users of the two online movie rental sites.

Using Compete data we created a list of the top 10 most browsed movies on the two competing sites. Using these lists Andy and I will objectively debate which service is better and why. As always, please chime in by commenting. Let us know which service you prefer.

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Opening Arguments:

Ryan Says: Netflix is the perfect example of the “long tail” theory in action (Chris Anderson even said so). While Netflix.com hosts over 2X the people of Blockbuster.com, the top ten browsed movies on Netflix attract a much smaller percentage of total site audience than those of Blockbuster. The reason is the breadth of films available on Netflix is so far superior that users spread themselves throughout the “long tail” which includes hard to find independent and foreign films. Most of these films are not even available at lesser services like….I don’t know…say, Blockbuster. Boom!

Andy Says: Confession: I used to be a Netflix member. But that was a few years ago and I like to think that I’ve grown up and become more knowledgeable since then, so I am now a Blockbuster online member. I have to admit that having a Blockbuster store within a few blocks of where I live biases me a little, but with a membership base rumored to be around 43 million households, it seems that at least one of the nearly 6000 Blockbuster stores in America is in a convenient location for a lot of people. The convenience of being able to return videos to the store and browse (a process I fully admit to enjoying) the selection in person has led me to many movies I may have missed, and to less time spent online searching them out. Digging further into the data we found that Blockbuster users average two sessions per month, compared to three sessions from Netflix users. It seems that I’m not the only one spending less time online looking for movies.

Parting Jabs:

Ryan Says: Great point Andy! Confession: Blockbuster is inferior. The option of exchanging movies in the store defeats the whole purpose of online movie rentals. That’s like buying a plasma tv that has a black and white mode. Weak. Moving on, Netflix draws a savvier, more informed client than Blockbuster. Thus I enjoy associating myself with the service, sharing my recommendations, and reading the reviews of others. While my fellow Netflixer is likely to have the thought provoking documentary This Film is Not Yet Rated in his queue, your average Blockbuster user is pumped because he can drop off Employee of the Month in exchange for Snakes on a Plane at their local store on the way back from an all you can buffet at Denny’s. You should be ashamed of yourselves.

Andy Says: The option of returning dvds to the store doesn’t “defeat the purpose of online rentals” because it is just that; an extra option. Now let’s take a minute to look at the “savvy” Netflix top ten… The Descent? That sounds a lot like the Netflix business model. This Film Is Not Yet Rated – No, but it was reviewed, and it’s not good. The tagline for Lady in the Water is “Time is running out for a happy ending.” Maybe that’s true, but I’m sure there will be plenty of time for an M. Night to showcase his award-winning worst supporting actor skills. And how long until Netflix adopts this as their own tagline? Ryan, this Worst Picture Nominee was one of your “well-informed” recommendations last month, right? And the real hidden gem in the list that all of us at Blockbuster are missing out on: Step Up. But really, it was a fine movie, the first time I saw it - five years ago when it was called Save the Last Dance. And last, but not least, Crash. More like Crash and burn, Netflix. Crash and burn.

Comments

[Ron Casalotti:]

Hmm... Let's see Andy. Your argument is that you spend less time looking for movies online.... because you are spending more time in the Blockbuster store picking them out in person? Seems to defeat the whole purpose of doing it online. I think I'll stick with wagging the long-tail.

2007 Mar 02 09:25 AM

[huangjin:]

They need to start carrying other region DVDs to really get into the long tail.

2007 Mar 02 09:47 AM

[Linda Nelson:]

You are both missing the boat! First, DVD sales are flat as a pancake for the past two years and dropping, so the DVD rental stores are going to disappear. Too much real estate for too little profit. For people that really want the hard boxed DVD's, DVD burning kiosks in stores like Wal-mart make much more sense. Second, VOD is growing exponentially. Everyone is getting on the bandwagon, including Amazon, Wal-mart, Clickstar, EVEN Netflix and Blockbuster, but they've got it all wrong. No one wants to stream on their computer, well practically no one. But tons of us want to download to our ZENs (better version if video iPod), as we can take our content with us or plug our little mobile player into our TV and watch DVD quality on the "big screen". Netflix wins the content war - Boomer Nation prefers intelligent content in the comfort of their home. Kids, who need cheap dates to get laid, need "blockbusters" in the theater, their friends house, or their car. VOD is the future, huge choice in content will win, but neither of the companies you talk about are doing it right at the moment. Check out how easy it is for indie filmmakers to get their content on Amazon's Unbox service at www.customflix.com You'll see my film, SHIFTED, on the ZEN. All the studios also signed up with Unbox, as opposed to iTunes, which is only carrying Disney content and no independent fare. I've already been contacted by Wal-Mart for content, so you know they'll be aggressive in getting great choices for their customers.

2007 Mar 02 12:18 PM

[The Wanderer:]

I posted a similar review on my website, but less technical and no screenshots. My clear choice is blockbuster for several reasons.

wandererthoughts.blogs...

2008 Jul 31 09:11 AM

[Jared Conley:]

It Really Comes Down to Just One Thing:

And that's whether or not you like the convenience of in store returns. BB has made it very easy for in store renters to try out the occasional online rental. Netflix edges them out in most online rental areas (except the throttling of new releases), but can't compete with the physical locations of BB. I've used both and am a current Netflix user, but finding myself at Redbox a couple times per month when I really want to see a movie.

Found another good overview here:

www.joefission.com/200.../

I'd love to see an alliance between Netflix and Redbox. I've used both BB and Netflix and am a current Netflix user. But BB has recognized their strength and their newest plans cater to folks who are primarily instore renters, and might dabble online. I love Netflix, but often find myself at Redbox for rentals. Netflix with any kind of physical presence could be the nail in the coffin.

2008 Dec 23 11:02 PM