Davis Freeberg

Blockbuster's New Paradigm and Its Impact On Competitors

I don't doubt that Blockbuster has a tough road ahead, but Keyes' message was right on track. It surprised me to see the market price so much downside, into what I felt were significant improvements. There are no guarantees that Keyes will execute on his vision, but given his track record and a more reasonable business plan, I could see why you would be willing to give it a shot.

As a Netflix shareholder, I'm happy to see the price wars easing and think that the market has misunderstood Netflix's digital ambitions. Whether Netflix raises prices or sees more growth, I see them also benefiting from Keyes new focus. It will take time before we'll know if Keyes has the right solution, but he seems to be addressing all of the right issues.