The by-mail and streaming juggernaut that is Netflix has achieved a significant milestone in the video rental business. Netflix earned more than $444 million in Q4 movie rental revenue in 2009, while Blockbuster brought in just under $400 million. 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)