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I got a flyer in my mailbox – a colorful red and blue 3×5 card – declaring, “Goodbye Netflix, Hello Blockbuster.” It’s now Blockbuster’s turn to fight back in the DVD rental wars. Once defeated, Blockbuster got a fresh start when DISH Network bought it (only after its huge debts were written off due to bankruptcy).
Powered by DISH Network’s 14 million subscribers and their set-top boxes, Blockbuster’s latest offerings allow you to stream movies and rent DVDs by mail.
Blockbuster Movie Pass customers can exchange the DVD received in the mail at Blockbuster stores as well.
If you remember, prior to the price hike, Netflix cost the same amount per month as Blockbuster Movie Pass is charging. I can’t help congratulating DISH-Blockbuster folks on their impeccable timing.
I am not a fan of DISH Network – do not consider this post an endorsement of the new rental service. But I believe in fair competition. In any industry, a monopoly is bad for the consumers. We are grateful for Blockbuster’s reentrance as Netflix will think twice before increasing their prices further.
Ever since Netflix announced its price hike, it has seen a steady customer outflow. Per a quick reference check on the internet, Netflix has 26 million subscribers. There is a possibility that a high percentage of these customers are already DISH Network subscribers, because so far the two companies have provided services that complement each other.
People subscribe to DISH Network or other satellite providers either because they live in rural/remote areas, or they only want to view a specific set of channels compared to cable TV’s wide range of channels (as well as saving money on entertainment costs).
The majority of people subscribing to DISH Network are probably Netflix subscribers as well. People in remote areas often subscribe to both satellite TV and movie rental services, as their entertainment options are limited in terms of movie theaters, libraries and local events.
If the DISH-Blockbuster folks get a major share of existing DISH Network customers (I’m sure they’ll try heavily, so expect to see a barrage of ads on DISH channels going forward), the battle of movie distributorship is going to be a seesaw event between the two. I won’t buy either DISH or Netflix stocks for now.
I recommend that people with DISH receivers immediately switch over to Blockbuster Movie Pass on October 1st as this will save money. People who don’t have DISH TV service can stay with Netflix – receiver rental is another cost you would incur otherwise.
If you are interested in seeing the differences between Blockbuster Movie Pass and Netflix rental offerings, read the CNet review. No one does a better tech review than the geeks at CNet (they earn money for the review, I don’t).
I will just highlight few major advantages of Blockbuster over Netflix:
| 1. As a movie rental veteran, Blockbuster offers more titles.
2. You will get some new releases – not all – about 3 weeks sooner on Blockbuster. 3. Blockbuster offers video game rentals as well. Nice one to lure the younger generation. |
And, did I say that the Blockbuster’s service is almost $6 less (per month) than Netflix if you use the streaming and DVD by mail programs together?
I am, actually, against subscribing to any DVD rental service. It just doesn’t suit my lifestyle. I’m not really into movies. SMB gets free library DVDs, which we watch on weekends. We do rent the occasional movie through Redbox or Blockbuster Express when the library waiting list gets too long.
If you are like me, I think you shouldn’t go for a movie rental service. Renting movies from DVD kiosks like Redbox or Blockbuster Express every now and then is a much wiser choice. In order to beat the overnight kiosk rental price, you would have to watch at least 8 DVDs per month at the $7.99 Netflix rate.
I know many of my friends, specially the ones with kids, swear by Netflix. For people who are too much in to movies or people with Kids generally prefer movie rental service. if you do, give the new entrant a chance and let it enter your living room.
It makes economic sense to switch from Netflix to Blockbuster only if you are an existing DISH network satellite TV subscriber.
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Miss T @ Prairie Eco-Thrifter says
September 26, 2011 at 9:49 AMWe actually canceled any services we had and just download now. Blockbuster went out of business where I live and the Netflix options in Canada aren’t that great. We do much better just paying per download for things we actually want to watch. It is way better than paying cable fees for things we don’t watch.
SB says
September 27, 2011 at 12:30 AMThis is my mentality as well! Frugal people think alike 🙂
Hunter @ Financially Consumed says
September 26, 2011 at 11:30 AMInteresting perspective. As a new Netflix user I can say that it is more cost effective for us than Redbox, at only $7.99 per month. I like the convenience too, those epeople lined up at the Redbox look so depressed
SB says
September 27, 2011 at 12:35 AMIts amazing that none of my friends with kids are against Netflix! haha nice one, people on Redbox lines look depressed 🙂 I go at midnight or early morning to pickup and usually return with a smile 🙂
20's Finances says
September 26, 2011 at 3:12 PMI was using Netflix for a while until they changed their service. I am too busy to watch movies for the next few months and didn’t want a big company to keep getting my money after raising their prices a lot. 🙂 If I watch movies now, it will be redbox.
SB says
September 27, 2011 at 12:35 AMRedbox is my box too when it comes to paid movie
Ben @ BankAim says
September 26, 2011 at 4:05 PMWe put our Netflix account on hold but will probably cancel. Their movie lists in my opinion are horrible. Hardly any new movies or TV shows being added, while Blockbuster has a better selection. Where I live we have 1 blockbuster left, but eventually they will go out of business so streaming online will be the only way to go. If we watch movies now, its only from Blockbuster.. driving to a Redbox and waiting in line is not my kind of thing.
SB says
September 27, 2011 at 12:37 AMIf people at redbox are reading this, they would have immediately planned for an expansion. Redbox is very cool and will be cooler if they expand the kiosk network.
[email protected] Financial says
September 26, 2011 at 9:11 PMI have to admit, I am sticking with Netflix for now because their streaming service still beats the other options out there. I am considering Blockbuster for my DVD rentals, but the fact that there are no stores too close to me makes them less appealing also. I don’t like the Redbox lines either. So, the search continues.
SB says
September 27, 2011 at 12:40 AMhmmm..good luck!
Andrea Pokorny says
September 26, 2011 at 10:52 PMVery interesting. I’ll never understand how/why this entire thing happened… it was so sweet. I don’t have DISH and am a Netflix fan. I’m not sure what I’ll do though. ??
SB says
September 27, 2011 at 12:38 AMStick with Netflix. I am sure you are one heck of a movie watcher.
Untemplater says
September 26, 2011 at 11:15 PMI’ve used Blockbuster online for years and love it. I’m not going to bother signing up for dish network though. I hate changing cable providers, such a pain. -Sydney
Ben @ BankAim says
September 27, 2011 at 12:31 AMIf you tell your cable company you are leaving for another, they usually give you free channels and a nice discount. Did that a few months ago because I really was going to move, but they enticed me to stay 😉
SB says
September 27, 2011 at 12:49 AMExcellent point. I once tried this to reduce credit card APR and increase credit limit. The later was aimed at improving my ratio of available vs obtained credit with an eye to improve score. Good to know that it works for cable companies too.
SB says
September 27, 2011 at 12:38 AMDefinitely why should you pay for another set top box. Who is your provider now?
Buck Inspire says
September 27, 2011 at 12:56 AMNice breakdown. I’m more of a Redbox, Blockbuster Express, library DVD kind of guy. I don’t watch more than 8 movies a month so I can’t justify the cost. Thanks!
SB says
September 27, 2011 at 8:02 AMI find my replica in you as far as the movie viewing goes.
Aaron hung @ aaronhung.com says
September 27, 2011 at 9:44 AMI’m 100% netflix streamer, no DVDs for me. Whatever I can stream, I will watch hehe
SB says
September 27, 2011 at 10:32 PMI guess you are single
retirebyforty says
September 27, 2011 at 4:39 PMWow, back from the dead eh? I don’t have Netflix and just use the library, but I think moving away from physical DVD is the right move for them. In 10 years, everything will be streaming and DVD will be fondly remembered like the VCR tapes. I’m glad I sold my NFLX position earlier this year though. 🙂
SB says
September 27, 2011 at 10:33 PMThat was a smart move, what on earth convinced you to sell NFLX?
Paul @ The Frugal Toad says
September 27, 2011 at 9:32 PMIf I could ever figure out how to program the wii to get Netflix I would try it!
We have used Redbox and it’s a pretty good deal as long as you remember to bring back the movie. 🙂
SB says
September 27, 2011 at 10:35 PMI used to forget but now its outsourced to my MRS. she never forgets.
Shaun @ Smart Family Finance says
September 27, 2011 at 10:37 PMBlockbuster’s streaming plan is pay by title. I like that Netflix is a monthly flat fee.
However, I like to see company’s rise from the ashes and if blockbuster ever gets competitive on the streaming side, I just may switch.
SB says
September 27, 2011 at 11:33 PMNo Shaun I am talking about Blockbuster movie pass, this is $9.99 flat rate per month streaming + rental by mail
Andrew says
September 28, 2011 at 9:12 AMI’m pretty excited for 10/1! Being an employee and subscriber of DISH Network I know some people will consider me biased but at $10 a month for all that you get with Blockbuster Movie Pass is a great value. This is a monstrous step in the right direction. I’d also like to say that if you sign up for DISH now you can get this for free for 12 months. It’s a great deal, definitely worth a few moments of your time. http://bit.ly/pzsPYW
SB says
September 28, 2011 at 7:53 PMThanks for taking time to comment. Are you authorized spoke person for DISH?
Jeff @MyMultipleStreams says
September 28, 2011 at 10:32 AMRight now the family is netflix fans. With one account we can watch on our ipads (which we do alot, especially the daughter), iphones or tv if we wish (which is less and less). Our big thing is trying to pull the plug on cable which Im so close to doing now.
SB says
September 28, 2011 at 7:55 PMGood you are going to save some serious money. What about your news and sports channels addiction, if any? Getting a rabbit air antennae?
Jeff @MyMultipleStreams says
September 28, 2011 at 7:58 PMThat is what Im trying to find out. Got to have my Charger football. Only other tv I do watch is history, comedy or sci fi channels (sometimes discovery) maybe I can talk the cable company into a custom package 🙂
SB says
September 29, 2011 at 1:24 AMthen go for direct tv or dish. Local cable operator generally do not sell customized packages.