Retuers is running a story about the war between Netflix and Blockbuster, Netflix wins first round in online DVD rental war.
"This year was about Blockbuster taking a run at us," Netflix Chief Executive Reed Hastings told Reuters at the company's Beverly Hills offices. "They chopped price. They emptied their balance sheet."
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.
The war is far from over, but the story gives us the current stats: Netflix is debt-free and worth $1.5 billion, while Blockbuster has $1 billion in debt and is only worth $684 million.
Blockbuster still appears to have a sense of humor:
When the head of Netflix Inc. said rival Blockbuster Inc. threw "everything but the kitchen sink at us," the world's largest video rental chain responded by sending him ... a kitchen sink.
Keith and Mac for sending this in.