This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.
Way back when, the movie-rental wars were fought between the neighborhood video stores (which had limited availability) and the superchain Blockbuster (NYSE: BBI) (which had limited availability except for the Die Hard series). Then, Netflix (NASDAQ: NFLX) came along with an amazing business model. Set up an account online, build a mammoth list of movies (from tens of thousands available), receive a few in the mail and send them back when you're done -- no late fees, but you only got new movies when you sent old ones back.
At the time, Blockbuster -- and many consumers -- didn't think it would work. First of all, you had to wait a day or two to get new movies; and second of all, who was going to want to deal with sending movies back in the mail? I mean, gosh. Well, eventually, Blockbuster caved and started the same kind of service. When you compare the two, however, which one takes the cake?
What Netlix Offers: For $16.99, you receive three DVDs in the mail. These movies come from the top of the personliazed list you create on the Netflix site. Delivery times vary, but local distribution centers can usually get them to you in two days. You can keep these DVDs as long as you want; but, if you never return them you never get anything new. Which is a real bummer when I Am Legend is gathering dust on your TV set. After you've watched one, or more, send it back in the provided postage-paid envelope. Within a few days, your next movie arrives in the mail. As of now, Netflix offers a total of nine (9) membership plans, from one-at-a-time to eignt-at-a-time. You can also purchase DVDs through the site, in addition to watching certain movies for free.
What Blockbuster Offers: For $19.99, they have the same kind of three-at-a-time system (but nothing more than three). The main difference is that members have the option of returning movies at "participating" Blockbuster stores; however, they can only do this several times a month and after that there's a $1.99 rental charge. Some of their premium packages offer free unlimited in-store exchanges, but the late fee can be applied to these in-store rentals.
Who Wins? It depends on how you operate. If you're online savvy, keep your queue of films updated and don't mind the day-or-two wait, Netflix is tough to beat. But if you like the convenience of dropping by a local store and immediately exchanging it (like, say if you really don't like the movie you rented) then Blockbuster is your man.
B. Brandon Barker also writes for Political Machine.
Vote in our poll for Netflix or Blockbuster as your preferred brand, and let us know in the comments why you love it.
Reader Comments (Page 1 of 1)
4-29-2008 @ 4:54PM
taylor said...
I pay $10 per month to Blockbuster. I am sent any Movie I want just like Netflix, plus - I can turn in the movie to a blockbuster store and they give me a another free rental while I wait for the next movie to be mailed to me. Why anyone would prefer Newtflix is beyond me.
5-08-2008 @ 6:00PM
Nelly said...
I used to have the Blockbuster $17 plan that gets me 3 DVD at a time mail rental, unlimited return rental, and 2 free game/DVD rental coupon each month. Not only did they raised the price to $20, they also dropped my monthly coupon, and moved me over to 5 store rental with online rental return. I'm canceling when I'm near the end of the billing cycle. I'll be going over to Netflix for their better pricing.
5-26-2008 @ 5:48PM
Jason said...
About Blockbuster: 1DVD Plan: I have nearly 20 movies in my queue, the next 3 or 4 are available and they received my return May 12th... its now May 26th and they still are not shipping me anything. No customer service by phone today. The store gimmick stinks because if you get a movie from the store it has late fees if it is not back on time. If you like running stupid errands then use the store option. I am headed over to Netflix.com.
7-19-2008 @ 12:26AM
Ron said...
First of all, I am a longtime Netflix user. I've actually been a member since before BB started their online service. The primary reason I started using Netflix was because of the pitiful customer "service" I was getting from Blockbuster.
What bothered me initially about BB was that they kept moving their return times earlier & earlier. The last straw was when I had to have my movies back to the store by noon the 2nd day I rented them. If I ever rented more than 2 movies, I would sometimes have to return movies I never got around to watching or else I would have to pay a late fee.
The last straw came when I spent a weekend watching 4 movies and made sure I had them returned by noon to their outside box. The next time I tried to rent, they said I had a late fee for those 4 movies...I was furious.
Long story short, I've been using Netflix for 7 years and I'm absolutely extatic about their customer service. I rent a LOT of movies and I couldn't be more happy with the service. Sure, I've had a damaged or lost disc along the way, but if I log in and report the problem they fix it immediately. That's a FAR cry from the "service" I got from BB.
As a sidenote, it seems that BB is playing "catchup". They're losing customers to Netflix (like me!) and they're doing whatever they can to get them back. IF, and I pray it never happens, BB runs Netflix out of business, expect their old ways of poor customer service and high prices to come back!