That the expansion of Netflix was inevitable no one doubted, but that Netflix would would go acquiring content license few people would think. Now Neflix is going to be a major online movie distributor. Is this the end of the era of Blockbuster? This move will probably cause serious trouble to Redbox too.
Softsailor reports that Neflix is currently in a process of acquiring content license because according to some reports the DVD is in decline. Indeed, when consumer are able to watch any movie or content online, instantly, or through their TV boxes, how much longer will it take from stopping to make that extra drive to Blockbuster or rent a DVD from Netflix.
People can simply watch any movie online, or on their TV. In this fast paced social setting, saving an extra drive to a near by Blockbuster store or even renting a movie from Netflix and waiting until it arrives, why not just watching it online?
In one of our earlier stories we had argued that Redbox has a clear advantage of putting their kiosks here and there, starting from Walmart and ending to a convenience store. However, now it seems that Netflix putting its expansion effort on pushing its online movie content distribution will be a huge leap forward.
Currently Netflix, Inc. (NASDAQ: NFLX) is the world's largest online movie rental service, with more than more than 10 million subscribers. For only $8.99 a month, Netflix members can instantly watch unlimited movies and TV episodes streamed to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes.
It will be interesting to see what strategies Redbox and Blockbuster will unveil in the near term to combat their competition.
Written by Armen Hareyan
HULIQ publisher.
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