Blockbuster vs. Netflix: Battle For the TV Set

I've been playing with Blockbuster's new MediaPoint set-top box (I posted a more detailed review on HackingBlockbuster), and I'd like to write about how Blockbuster's strategy compares to Netflix's for TV viewing.

Subscription vs. rental model. Netflix enables customers to have access to 12,000 titles for as little as $8.99 per month, plus the cost of the player. Blockbuster is giving the box away with 25 rentals, but then charges $1.99 to $3.99 per rental. I wish Blockbuster would push the studios to extend the 24 hour viewing time to 30 hours or more (in case you don't finish the movie the first night a little extra time would prevent a second rental).

New Releases. Netflix provides a limited number of new releases and current TV shows, but Blockbuster's approach is focused on new releases.

Partners. Netflix seems willing to work with almost anyone that has a device that connects to the TV, and Blockbuster is already talking about Blu-ray players and game consoles, so we could see more exclusives like the Microsoft / Netflix deal.

Streaming vs. progressive downloading. Netflix's streaming works great if you have a fast, stable connection, but Blockbuster's progressive download can work with slow DSL or cable service.

Movie Management. Netflix requires customers to use the website to manage the streaming queue, while Blockbuster does movie searching and rental on the device. I expect Blockbuster to link OnDemand devices to a customer's queue in the future, but I'm not sure that Netflix will let users search for movies on the device.

We can't forget about Hulu, TiVo, Sling, Amazon, Apple, or any of the other companies that would love to own the online movie business like Apple does with music, so things should be very interesting for the next few years.

What do you think of the different approaches?

Comments

[david]

i think blockbuster is capitalizing on what the cable companies have failed to do. they've taken their business model, and instead of 7 channels showing "don't mess with the zohan", they're offering 2000 titles. If cable didn't inovate at the pace of american automakers, blockbuster wouldn't have a dog in this fight.

while blockbuster's box is it's own business, the netflix box is a supplement to the DVD-by-mail subcription you already have. so without all the extra per rental income, i can see why blockbuster is winning on features.

[dAVe]

I want to see incorporation of my two free-movie coupons (yes, my BB account is one of the charter memberships) to use with this box. They work for new release 2-day rentals (DVD & Blu-ray) sitting on the shelf. They should also work with this box.

I also want to see another option other than $99 pre-pay to get the box. I am never interested in seeing a movie for $4.

[Hunter McDaniel]

I would say NF has made the right choices and BB has made the wrong ones - as usual.

Subscription vs. rental? People want a reasonable and predictable cost. They don't want to take the chance that one of their kids may start watching stuff and generate a $100 surprise on the bill.

New Releases - Certainly a lot of people are interested in new releases, but new releases come with high costs and availability constraints that conflict with a subscription model. Keeping the subscription model is more important.

Streaming vs. progressive download? If I have to wait an hour or two for the movie to download then I might as well wait a day or two for it to come in the mail. Also, the download approach causes bandwidth to be wasted if the customer decides not to finish a title after they have started it.

Movie management. TVs, which you operate with a remote control, make lousy computers. NF made the right choice by keeping search functions on the computer and only simple playback controls on the set top box.

[digifan]

I bought one of these and can't wait to get my hands on it...

The user guide says it has parental controls to restrict content and purchases

http://www.blockbuster.com/content/v.4.232.2.0/media/settopbox/2wire_STB_user_guide.pdf

Progressive download means you can play while downloading. Wasted bandwidth, maybe, but if you don't have enough bandwidth to stream (like me), downloading still gets you the movie.

HackingBlockbuster has a more complete review, including a video. Looks like the search/discovery side isn't so bad.

[lynn]

i subscribed to netflix and got the roku box for the sole purpose of avoiding paying $2 to $4 dollars a movie. if i wanted to pay that much i would go to the video store across the street.

[dAVe]

quote from McDaniel:
"the download approach causes bandwidth to be wasted if the customer decides not to finish a title after they have started it"

Nailed It! Considering the fact at 4 bucks a pop, you're not likely to casually surf these movies like you would 200 channels of mindless Cable/DBS content. But this I have done with my Roku NFPlayer :o)

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Streaming vs. progressive download? If I have to wait an hour or two for the movie to download then I might as well wait a day or two for it to come in the mail. Also, the download approach causes bandwidth to be wasted if the customer decides not to finish a title after they have started it.