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The by-mail and streaming juggernaut that is Netflix has achieved a significant milestone in the video rental business.
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Netflix earned more than 4 million in Q4 movie rental revenue in 2009, while Blockbuster brought in just under 0 million.
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This is the first time Netflix has surpassed its BB rival in domestic rental revenue since Netflix’s launch.

Netflix CFO Barry McCarthy had the following to say about his company’s achievement at the expense of its rival:

“Clearly there has been a big ground shift since we launched the subscription model in 2002 . . . And the growth has hurt [Blockbuster], but by how much exactly we’ve benefited from store closings is very hard to say.”

With Redbox’s 2009 Q4 revenue up more than 73% from the previous year, Blockbuster seems to be placing its hopes in the protective arms of the studios to save it from its competitors. Take a minute to visit the comments section, Insiders, and let us know how you think this is all going to shake out.

(via Home Media Magazine)

3 Responses to “Netflix Passes Blockbuster in Domestic Rental Revenue”

  1. Member [Join Now]
    alans613

    The only thing that will save BB, for a little while at least, is the 30-day window imposed on Netflix and Redbox. The window has anti-trust written all over it. Without the window IMO, BB would be out of business by the end of 2010. Their buddies just saved their collective rear ends.

    • Member [Join Now]
      Cypherdude [cypherdude]

      I have to agree. This ridiculous “28 day” delay that the studios are imposing on Netflix and Redbox are going to hurt their rental business. BB should see their old customers slowly return when they discover they cannot rent their favorite new releases immediately. I was surprised to see “The Informant!” and “The Box” arrived this week, on 2/23, yet Netflix does not have it available until 3/23. The 28 day delay is already affecting their customers!

  2. Visitor [Join Now]
    Phoebe [visitor]

    I wouldn’t say it’s all over for Blockbuster, though. The movie rental business (especially digital) is in flux, and with some savvy self-reinvention, Blockbuster could still play a major role, I think.