Petteri Pyyny
10 Aug 2002 4:41
World's largest video rental chain, Blockbuster (owned by Viacom), has launched a trial in several U.S. cities that aims to take share of current or future NetFlix user base.
NetFlix, a four-year-old company, offers unlimited DVD rentals through its website, delivered directly to subscriber's door (free shipping and return), for $19.95 a month. And as those who use NetFlix, are considered to be "hard-core DVD users", Blockbuster is obviously interested of this area of business.
Blockbuster's model is somewhat different anyway, they offer $19.99 monthly subscription where late fees don't apply until after 30 days and users can rent upto two films at once. Service is being offered currently in Houston, New York, Seattle and Phoenix. Difference between Blockbuster's subscription service and NetFlix is the fact that Blockbuster movies need to be rented from local Blockbuster stores while NetFlix doesn't have any physical rental chain whatsoever.
Source: News.com