Netflix Chief Executive Officer Reed Hastings says Blockbuster has closed 10% of its stores in the San Francisco Bay Area, where Netflix has its biggest presence, he says. Overall, Blockbuster says it closed roughly 2% of its stores last year.

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Netflix Inc. told a judge Wednesday that it would change the terms of a class-action settlement amid criticism that the online DVD rental company was going to use the accord to recruit customers.

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Rogers Video is the largest Canadian-owned specialty video retailer in Canada, and the fifth largest video chain in North America. They’re now offering their movie library for DVD-by-mail subscriptions with five different subscription plans to choose from (ranging from 1 out-at-a-time to up to eight at a time). They offer home-delivery from a selection of over 33,000 titles, plus is postage paid both directions by Rogers Video Direct. Keep the movies as long as you want, and when you return one, the next DVD in your queue is sent out the same day.

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CNN ran an article on their website on February 10th about the experiences of Manuel Villanueva, a Netflix subscriber. During the first months of his subscription, he was receiving the movies he wanted quickly. Because everyone pays a flat fee, Netflix makes more money from customers who watch only four or five DVDs a month. Customers who quickly return their movies to get more erode the company’s profit margin, because each DVD sent out and returned costs 78 cents in postage alone.

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BlockBuster aired commercials during the 2006 Super Bowl for their online DVD movie rental service which they call Blockbuster Online. It’s too bad they couldn’t have found a more exciting and humorous way to advertise, but they certainly ran the ad enough.

Rent Movies by Mail

With Blockbuster Online you can rent movies online and return them by mail. Free shipping is included, most movies arrive within 1-2 days and you receive coupons for free in-store rentals at any BlockBuster store.

Get a discount trial subscription to BlockBuster Online Now!

Los Gatos, California-based Netflix didn’t publicly acknowledge it differentiates among customers until revising its “terms of use” in January 2005 — four months after a San Francisco subscriber filed a class-action lawsuit alleging that the company had deceptively promised one-day delivery of most DVDs.

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I got an email from Intelliflix today noting a few changes to their pay-per-rental pricing and refund policy.
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Shares of online DVD rental company Netflix Inc. surged after an analyst recommended that investors buy the company’s stock, saying its unique business model could help it top 7 million subscribers by 2007. The company’s shares gained 7.1 percent, to trade at $26.89 — the stock has more than doubled since the year began.
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