Survival of the fittest. If the local video stores can’t compete oh well, screw ‘em, their fault for not being innovative and keeping up. I had Netflix when it first came out and loved it. I canceled it in favor of the movie channels, but I may resubscribed one day for their online streaming. Netflix and Redbox are where it’s at. Blockbuster should just go away too. They suck. Nothing more convenient then getting movies mailed to you or being able to stream them directly to your TV. I haven’t been in a video store in probably 10 years now.
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Netflix didn't kill these companies. They didn't need any help! Blockbuster and Hollywood had multi-year distribution contracts with the major studios, but they blew the opportunity and did not change to meet the demands of the market. PPV on cable and satellite had been eroding the brick and mortar store fronts for 15 years, yet they just dug in and did not change their business model.
Why would I spend 30 minutes to an hour going to a store that usually didn't have adequate inventory then have to make a return trip so I wouldn't get charged for additional days! I am saving time and money and have a subscription to Netflix with 4 or 5 monthly DVD mailers and a few on demand orders from Amazon.
IMO.... Netflix would be strangled by the bandwidth limitations of satellite with the current model of providing on demand services. Now if they loaded your DVR with popular titles instead of shipping DVDs then it might make sense.....