Innovation becomes Monopoly... huh??

BlockBuster = loser.

they eliminated late fees I dont know many video stores that have done this...they charge you a 1.25 charge for returning it over a week late...and you can keep it up to a month and they charge you for the movie but as long as you return it they will remove the charge (granted its within a certain time frame)

The Netflix model is different. You pay 20 bucks a month for the priveledge of having unlimited movie rentals. This recurs every month.

So in January, you get charged 20 bucks. I rent 4 movies. You can keep the movies as long as you wish. You don't return them until March. You just paid 10 dollars PER movie to rent. That's your fault.

Then in April you realize your mistake, you start to order more movies, watch them, and return them quickly, now you get 12 movies in April. The price then becomes 1.67 per DVD. That's a much better deal.

If you can watch a movie a night, and return them you can pretty much get every DVD for less than a buck. That is a pretty good deal, but there is not a single penny of late charges, AND you don't pay shipping either way.

20 bucks, unlimited rentals. Very simple. Blockbuster may charge a 1.25 overage fee, but Netflix won't. Another reason why Netflix is doing better than Blockbuster.

Plus, blockbuster has to pay employees, electricity, rent, phone, air condition, etc.. Usual things for a brick and mortar, that adds to their overhead. Netflix only has a few hundred people working in a CENTRAL warehouse, and they distribute all over the united states from ONE location. So they can make things MUCH cheaper.

oh pleeeze! block buster thought it had a monopoly when it got away with those outrages late charges and fees for not rewinding the tapes. didnt they also charge a fee for walking into their stores...? block buster, give it up and instead of spending money on fighting the american way of doing business, spend it on finding away to convert me back as a customer and make me "proud" of it mannn..

On the blockbuster side, I hold a grudge. Does anyone remember the days of 4 dollar per rental dvds and late charges out the wazoo?
You rent 5 dvds and it's 20 bux. God forbid they're new and you don't return them in 2 days.
Does anyone remember the days when Blockbuster would show up in your bank account taking obscene amounts of money for late charges (or recently, dvds you purchased because you've kept them too long) only to verify later that you'd not only returned them, but returned them ontime?
Blockbuster, no matter where I've rented from them, have always left a bitter taste and that's something I can't let go of. That being said it's really barefaced of them to try to eat up netflix' market.
On the netflix side....no real complaints, I personally believe that online rentals and queuing were their idea and so, give credit where it's due. But that's not the real issue at hand, and many people don't understand that...the real issue is how Blockbuster goes about their online rentals - it's almost a complete copy of the Netflix site, which basically involves a queuing system which allows you to que what you want now, and later and prioritize. Return 1, get 1 from your que, return 3, get 3 from your que - you decide the highest priorities etc. Thats one of the patents. The second one involves having the customer keep the DVDs for an unlimited period of time without incurring fees, as long as the subscription was paid. This is also brand new, and Netflix' idea. The stuff blockbusters lawyers are spewing are utter crap and just cannot be used in the same light. Blockbuster is basically saying there's no other way to rent dvds out online but through a que which is ludicrous. There are MANY ways. Pick 3 movies to send to me...Bam! Doesnt need to be a que at all. Queuing is simply innovative, without it, online rentals would be a hassle - Netflix knows this and is defending it as their idea because, doh! it is!. Blockbuster has an unfair advantage if they win this, in that they'll steal a chunk of the online market as well as have their brick and mortar business to back it up.

but on blockbusters defense, the things netflix patented is stuff that really cant be patented, which is why they are filing agains the patents. they are saying it is like mcdonalds invented the drive-through window, and if they had patented it, it would be the same type of crap. you can only patent, real tangible things, not simple ideas on how to do things.

I think netflix is right, I mean blockbuster did just kind of show up one day with a perfect clone of their business strategy. I mean the mailers are identical even. I remember seeing a history of netflix envelopes, even that took years to perfect. So blockbuster even ripped that off. It's not just the online system but everything. I mean it's like they have someone working on the inside at netflix giving them all the juicy details of their business model.

As for blockbuster I don't know what all that hot air is. Netflix might be a monopoly so why doesn't blockbuster just step up competition. They have an identical business mode, they just have 1/5th of the customers. But how many years behind are they?

so with that in mind, let competition resume and let the best prevail. blockbuster seems to have a better system though, you get 2 free rentals a month from a brick and mortor store which is great. Gotta love going into one of those, picking out a movie you want by looking at the back of the box and checking it out right then.

First off this is total BS.. I belong to Netflix, my brother uses Blockbuster. THE DVD'S ARE SENT FROM THE SAME PLACE! Its just a matter of different packageing.

Netflix and Blockbuster don't share distribution centers.

The Netflix distribution centers are owned by Netflix and likewise the Blockbuster distribution centers are owned by Blockbuster.

Yeah, I don't know what you are basing this information on, but you would be wrong. They are separate companies. Always have been.

Blockbuster is new to the online rental thing. Netflix has been doing it for about 10 years now.. maybe less, but much longer than Ball buster.

You guys that are bashing Blockbuster are not realizing the main point: Netflix wants to dominate the market. Monopolies are illegal. Do you see the connection?

As the article writes, it would be like Mcdonalds suing Burger King for having drive-thru windows. There are only certain ways to do business. (as in only certain ways to do online queues).

Also, Netflix SUED Blockbuster....Blockbuster countersued.

This is the same deal with Creative Labs and Apple.

Please read the article before you post, or you might as well not post at all. I am tired ofignorance.

Wrong. Why don't you read the article?

Netflix is "dominating the market" as you so blithely put it because they were the first to market with a service that people wanted. Blockbuster, in their arrogance, thought that they were Masters of Their Domain and they didn't need to compete with Netflix. By the time they saw the writing on the wall, Netflix had a good headstart and a well-established customer base. How does that old saying go? Ya snooze, ya lose.

Also, the McDonalds/Burger King analogy is not a fact. It is an allegation tossed out by Blockbuster's lawyers, who obviously are trying to cast their client --- a multi million dollar Fortune 500 company who have, in the past, taken the art of ruthlessly squashing their competitors to dizzying new heights -- in the role of helpless victim. I repeat: YOU read the article.

Netflix developed and implemented the online queuing system as part of their business strategy. They were first to market with the idea and they assumed the risks and losses over the years as they perfected it. That's not a monopoly; that's smart business. It's typical of Blockbuster to try to bulldoze their way into a market that they previously thought wouldn't be profitable and instead of creating a system of their own, they just completely copy another company's business model and then try to sue the competitor out of business because they are still losing the game. Lame to the nth power.

*Monopolies are illegal*

Yeah, you people really need to read what a monopoly is. your are loosely using the definition where it doesn't apply. For a monopoly to exist, it would have to be the *ONLY* company, not just the largest, not just pushing competitors out, the *ONLY* company doing business in a particular market.

And for another thing, it doesn't say monopoly, it says monopolizing. They are 2 different things. I can monopolize your time, for instance, which doesn't allow people to talk you. But I am not a monopoly. Netflix is being accused to TAKE certain liberties, and attempting to wrest control of online DVD's away from Blockbuster.

But as many people have pointed out, look at Blockbuster's***ory. They weren't complaining when they were pretty much the ONLY DVD/VHS rental place in town, mom and pop shops couldn't even stay open because blockbuster would monopolize local services.

Blockbuster has even been sued in the past, by other local vendors, because they were themselves monopolizing and taking away business.

Its, as the other user mentioned, "a taste of their own medicine". I think they deserve it personally, charging exorbitant fees, and calling like they were the mob when you were 2 days late on a video.. I don't like blockbuster, and Netflix has a niche. They found a niche. Blockbuster wasn't interested in that niche, because they felt people would prefer "convenience" over delivery. Obviously, they were wrong.

In any case, we see the main point. We know its a countersuit, but we also know the Blockbuster deserves it. Of course Netflix wants to dominate the market, that goes without saying.

Show me *1* just ONE company that isn't interested in making a profit and having the largest customer base among their competitors, and I will sell you some land in Louisiana cheap!

And contrary to your opinion, there are MANY ways to do business, not just certain. That's how companies die, because they feel only a couple of methods work for business, that's false.

Netflix sued over alleged copyrights. Blockbuster is suing because their profits suck. Its like the kid that cries because he got caught teasing another kid.. and he says "well he started it".

Well blockbuster, too bad, that won't work.

Exactly.

I agree with what you've said. Netflix doesn't have much to stand on really.

One clarification however. Monopolies are NOT illegal, never have been, never will be.

ARE YOU PEOPLE SERIOUS!!!!!!!!!!!!!!!!

The Queuing system...that is not anything but a service. It is there for convenience like a website checkout system. It doesn't matter who invented it(provided it's not patented or patentable like new technology).

Blockbuster is pissed because they are having done to them what they did to so many "Mom and Pop" movie stores. END OF STORY

I agree that the Netflix lawsuit doesn't hold much water, but hey they are doing what Blockbuster did for years in the local markets.

Netflix is in NO WAY a Monopoly!! There are so many ways to rent a movie. You can go to a website, you can go to a store, you can go to a library, or you can borrow it from someone. All of those are perfect examples of ways to get and view a movie. Just like RIJP said "It is a CHOICE you make"....and that's it.

yeah you would be correct, although a monopoly by itself isnt illegal at all, locking customers into your service is.

I was a netflix customer for a year, I had multiple problems with slow shipping, many broken disks, and slow returns...I finally got tired of it and moved over to blockbuster...blockbuster offers the same deal PLUS you get 4 free rentals a month in any blockbuster of just about any movie (I think like driving defense videos you have to pay for) there is lots of little online video rentals and online video game rentals...why is netflix not going after them? because they are not a threat...

Ok, lets look at this logically.

Netflix has a warehouse. They house millions of DVD's. They are in the business of renting DVD's, not shipping.

Shipping is USPS. Did you know that the USPS hires, and probably a fourth of their workforce are contractors? So, USPS sucks when it comes to packages, it depends on your area. accusing Netflix of breaking your DVD's (which they have to replace) and late on shipping (again they ship the DVD's immediately). Their process has been in place for many years, why would it ONLY affect you?

Because USPS in your area is crap, that's why, don't blame Netflix on the USPS having poor service. I live in a rural area of Tampa. They never did get my address correct. IRS got rejection notices, and I had file a formal complaint to prove the USPS couldn't get thier act together.

My point is, you can't blame Netflix for poor service when its obvious they aren't the problem. Plus many of the postal carriers are theives, they see Netflix and they will take stuff.. it also happened to me, that's why I guarantee everything with FedEx now.

Actually rijp, netflix just plead guilty in court to purposefully delaying shipments to many customers. Some of what was to blame may have been USPS, but they were deliberately sending out shipments slowly too.

If you remember a few months back, netflix upgraded everyone to the next higher tier for a few months. This wasn't out of the kindness of their hearts, it was mandated by the courts as restitution to their "shipping delays".

As Grazer has pointed out, this is a COUNTER claim by Blockbuster:

*For Netflix to claim exclusive rights over subscription movie rentals is like a fast-food restaurant trying to patent selling hamburgers through a drive-through window,"*

Netflix apparently is trying to force Blockbuster out.. Still, I think Blockbuster is trying to whine about their slow sales..

Pitiful Ball Buster.

Funny how none of the people posting so far noticed the word *counterclaim*.

Well, its still some weak attempt to stop the bleeding..

That's like accusing Walmart of monopolizing retail.. PEOPLE make the choice, its not like it's forced.

Well, the monopolizing/anti-trust issues dont' coem up, just because they are really sucessful, it's only when the company itself attempts to block out competition.

Well, it's like this.

2 two-year olds argue. The first one punches the second one. Com'on, the second one's gotta fight back!

AMEN!!!!!!!!!!!!!

no, they dont just come up, but unsuccesful companies use that as a claim as the reason they are not doing well, instead of blaming themselves for their failures.

Boo Hoo for Blockbuster. Poor little babies are not getting fat off of obscene late fees? Then sue of course! Its the NEW American way!

haha..

Late Fees? How long are you keeping your movies? They call it rental for a reason.

Nothing new. It has always been the american way.

Netflix doesnt' charge late fees...

I can keep my 4 movies for as long as I want. I can't get any MORE until I return the ones I have..

*Netflix doesnt' charge late fees...*

Couldn't your monthly payment for holding on to those four movies be seen as a hefty late fee, after all, you aren't getting anymore until you return them.

Good point. It kind of reminds me of those people who really believe that they are getting 600 free minutes on their cell phone each month, no wait... not free it costs ~$39 a month to get those (free) minutes.

or 45 a month for unlimited talk time plus prepaid texting:-)

Oh nozors, our online rental business didnt come out prior to yours and you have more members. THATS NOT FAIR! We are going to sue you for monopolization. GOD BLESS AMERICAN CORPORATIONS!

Please read the article. Blockbuster didn't sue netflix. Netflix sued blockbuster over patent infringements that shouldn't have ever been granted in the first place.

Regardless of Blockbusters past, and personally I liked blockbuster for the most part, I had netflix for a long time, and had no real issues with them either. The fact is that netflix is trying to put blockbuster online out of business not by competition but by bogus patent infringement claims, and that's not cool.

or maybe this article is biased? and the patents arent really for the queing or idea of online rentals, its for the computer systems netflix uses to rent and the interface and the packaging. which blockbuster stole. maybe you should read about this in different places also. blockbuster is just trying to sway public opinion by using the basic description of the patent as if it was the whole patent, and trying to slow the process before they are frced to stop. READ READ READ, i cant stress that enough.

Oh, man -- that's rich! Blockbuster accusing another company of 'monopolizing'. Blockbuster sure knows about monopolizing; they pretty much wiped out every single independent dvd rental store within a 50 mile radius of my house. It's great to see them getting a taste of their own medicine.

Exactly!

Yeah, and I liked Turtle's better! I am still bitter about that..

not sure if you know Turtle's or not, but they were big.. until BallBuster came along.

I remember Turtle's, they were a great store. I hadn't even heard of blockbuster until the Turtle's near my house was turned into one.

I have to second zee7. Not only did they wipe out the small independent video shops, they were greedy and tacked on excessive late fees & charged them to unsuspecting customers on their charge cards.

Right! That's what I am saying.. same here!

west coast video anyone?