econwizard: Netflix Regains Innovative Edge Over Blockbuster

About Me

Location: Massachusetts, United States

My "I" is constantly changing (perhaps this is merely AD/HD): overdetermined nexus of cultural forces emanating from several continents: skeptical of all Truths and seeker of the truth: iconoclast by enculturation, brain chemistry, and, perhaps, choice: perpetually perplexed, particularly about why we exist/ as the manifestation of overdetermined forces whose existence (and nature) is not as solid (or simplistic) as we would like.

Thursday, August 02, 2007

Netflix Regains Innovative Edge Over Blockbuster

By offering movies to view online, Netflix has once again gained the advantage over Blockbuster. This is particularly the case because Blockbuster blinked (in the competition) when the firm decided to close a large number of stores, reducing the value of its "Total Access" option. It further reduced the value of this option by degrading it, eliminating the ability to turn in all of your online rentals at stores in return for immediate in-store rentals. It now restricts the number of such exchanges to five (unless you pay a premium for unlimited exchanges). It is never good when a company offers a service then degrades or dilutes that service a short time thereafter. Sends a negative signal to (and generates greater uncertainty for) customers.