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Will Netflix Rise as Blockbuster Falls?

We’ve already discussed what might happen for Redbox should Blockbuster go bankrupt, and now it’s time to turn our attention to BB’s other main antagonist, Netflix. Barron’s has run a story discussing possible outcomes for Netflix in a world with a reduced or absent Blockbuster.

According to Barron’s:

“Though a Blockbuster bankruptcy would surely benefit Netflix, [the notion] isn’t as compelling as some might think. After all, Blockbuster has been fading for so long that it was far from being a serious point of concern for Netflix. That space is reserved for kiosks like Redbox, operated by Coinstar as well as cable providers that offer on-demand movies, and online purveyors, like Amazon.
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com and Apple.”

That being said, the piece also acknowledges that Netflix is the market leader and has the best brand awareness in the industry. With many new TVs and devices coming with Netflix’s streaming service pre-installed, Netflix also stands to rapidly grow its subscriber base with streaming-only customers.
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Netflix’s plans to expand into international markets with its streaming service could also continue to fuel growth.

So what will it be, Insiders? Has Blockbuster been so long in decline that Netflix would only get a minimal bump from its diminution or demise, or is there a pot of gold waiting for Netflix if/when BB gasps its last? How would Netflix divide the BB carcass with Redbox and VOD providers? Hit the comments and tell us what you think.

(via Barron’s)

6 Responses to “Will Netflix Rise as Blockbuster Falls?”

  1. Visitor [Join Now]
    Firstlawofnature [visitor]

    BBI’s revenue is more profitable to other operators than it is to them at this point so it could still have a pretty profound effect on the fittest players.

    Guess: $1B of lost BBI revenue will play out as follows…

    20% to kiosks
    15% to by the mail
    15% to cable VOD
    15% to retail/download sell through/stream
    35% to consumers pockets for other uses

  2. Visitor [Join Now]
    slidecage [visitor]

    i rejoined netflix after being away for the last year from netflix…

    so far for 18.18 per month (after tax)

    Feb i was able to turn around 23 movies

    So far in march i have been able to turn around 15 movies

    I will probally stay with netflix until they start to throttle me (anything less then 12 new releases per month and i would leave)

    Right now im getting 12 new releases and 12 sort of older but wanted movies per month

    24 movies permonth = 75 cents per movie compair to 1.07 per movie redbox

    redbox would cost me 7.50 per month and i would not be able to rent 70% of the movies im getting via netflix.. and im thinking about getting a blu ray that would allow me to stream movies

    but if BBI fails i say you see about 50% going into kiosks. 30% netflix and the other 20% other places

    I heard that BBI might close all of their stores and go into stand alone boxes like netflix

  3. Visitor [Join Now]
    scott [visitor]

    netflix is great but for spur of the moment movies redbox works better i use both of them and enjoy the conveinence of both i have not used blockbuster in 3 years to much crap around here they always to to find ways of charging me more money

  4. Member [Join Now]

    With the Postal Service going to 5 days (if approved)
    this would mean an extra 4 days a month NetFlix
    does not have to deliver DVD’s to their customers
    which should increase their profits even more!

    good for them;
    bad for us the consumers!!

    I think they should compensate the public by giving
    everyone an extra DVD rental in their plans,
    say if you have a 3 dvd at a time plan it should increase
    to the 4 DVD at a time.

    That sounds fair to me.

    Do you think Netflix will do it?

    Not unless the customers scream about it!!!

    • Visitor [Join Now]
      justme [visitor]

      No, they should either double your plan (like 3 at a time goes to 6 at a time) or drop the price of each plan in half because their customers will now be getting only half the movies they were! I know if I was a customer and they didn’t do that I would cancel my plan in a heartbeat! I realize it’s not their fault the post office is dropping a day but it totally screws up the amount of dvds you can get each week so they should compensate the customer accordingly.

      • Member [Join Now]

        I think that would be a little drastic
        (they still have to make money
        to stay in business);
        but I get your drift;
        though it is only 13% of the total and going to
        a double DVD would be like 50%; which would be unreasonable.
        Yet, I do agree NetFlix has had a “gravy train” considering
        Though, I agree that the public forgets about all the times
        they are “jilted”
        out of DVD’s because of Post Office “HOLIDAYS”…
        Count them,
        (there is a LOT!) which means,
        LESS DVD’s for YOU,
        MORE profits for NetFlix!!!