> -----Original Message-----
> From: Ken Ketsdever [mailto:[EMAIL PROTECTED]
> Sent: Monday, January 17, 2005 11:54 AM
> To: CF-Community
> Subject: RE: NetFlix: (was Re: Alright, who has my CDs?!?!?)
> 
> Anyone notice that Blockbuster lowered their price to $14.99 a month.  I'd
> still rather pay the extra $3.00 and get my dvds faster.

And - from what I can tell - a much bigger selection as well.

Still - I think that the tide may be turning.  Blockbuster, Walmart and now
Amazon.com (rumored) are all getting into the game.  All of them have the
resources to undercut NetFlix significantly.

Right now NetFlix has upper hand - they have the largest library, customer
loyalty and the most streamlined distribution system (more centers that work
faster).  But maintaining all those distribution centers is costly,
especially when that's the only business there (Walmart and Amazon can
leverage their existing shipping centers).

Netflix is responding with more features (personal queues for example) and
community building (buddy's) but I don't think they'll ever be able to
compete on price alone.

It won't be the first time that a pioneer was squeezed out of the market
place by conglomerate upstarts.

I would actually really like to see Amazon partner directly with NetFlix
rather than create a new service from scratch.  I think that would
effectively serve Amazon's needs and protect Netflix nicely.

It would also be nice to immediately choose things like "buy this disc"
right from the queue or see books and music related to your selections.

Jim Davis




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