I defended blockbuster to the point that I said it was better than netflix as an online rental place. I believe they were for a year, but Blockbuster screwed up… big time.
They gave their customers a great deal to the point that I thought, hey a brick and mortar rental place is still relevant. The problem is that they did not really think of what they were doing. You could return your online rentals for new release movies and I think that just killed them. Then they take that away and make a lot of people upset because when you join a service because of a promotion, when it gets taken away most people are just going to bolt.
Netflix and their slowing down power renters really upset me. But I have decided to come back to them and check out their new community features. They are web 2.0 enough to make me interested, if they start making more flixter like they might have something going. That is one nail in the coffin, the one that truly closed the deal is probably the big red boxes.
Blockbuster is super expensive, renting 4 new releases pays for a whole month of netflix movies, which in my experience could be up to 20 movies. Netflix is now not slowing down their shipping and as long as you watch and send back pretty quickly you will always have something to watch. I kind of stagger the movies so that something is hopefully arriving as I send something.
Netflix also now allows you to watch movies directly from your PC which is becoming more and more popular. If you have not tried an online rental service, you should. The only way I would not is if a local store was still open around here, sadly Blockbuster helped run out of business the last one we had.