Online Rental Blog

we have seen, Netflix and NBC have a very solid working relationship, offering exclusive web content for the site in the past. Today, Netflix announced that it will offer episodes of hit NBC shows, such as Heroes, The Office, 30 Rock, and Friday Night Lights to its subscribers for instant viewing online.

Just to clarify, Netflix has offered instant viewing of various DVDs, including Heroes Season 1, prior to today, but now it will be making episodes that are currently unavailable on DVD available for viewing. This also marks the fourth way that you can see NBC shows online. NBC currently offers its shows on Hulu, NBC.com, NBC Direct, and now Netflix. It’s nice to see that NBC is really forward thinking about Web distribution, now hopefully the Writer’s Guild can get the strike settled so that they will be compensated for this content.

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Netflix’s return DVD mailers are apparently costing the U.S. Postal Service $21 million in annual labor costs. And the Postal Service wants some of its money back.

Simply put, Netflix’s return DVDs clog the postal machinery and require manual sorting. When Netflix subscribers open their mailers the leading edge of the package is removed. On return, the same package comes back without the hard edge and plastic instead and jams the sorters.

According to Citi analysts Tony Wible and Mark Mahaney a potential 17 cent surcharge to Netflix’s DVD return packages would crush the company’s operating income per subscriber

full article

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I was concerned that Netflix was going to come in flat on the subscriber-acquisition front during the third quarter. After all, Netflix started the period with 6.74 million subscribers and had a target of 6.7 million to 6.9 million users by the end of September.

With Blockbuster raising Total Access prices and more or less warning of tepid growth, I was starting to wonder why Netflix wasn’t raising its guidance to account for the customers that Blockbuster wasn’t claiming.

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Hi everyone. My first post so i got it right. Just had email. 1000 points for sign up DVD rental. Great code for those who missed last time. Cheers xx

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Q Despite recent losses, Blockbuster has deep resources, combining brick-and-mortar stores with online rentals and brand identity. Do those advantages make it an inevitable winner against Netflix?

A I’d like to say they don’t have a chance on the planet, but the reality is they do, and that’s what makes it an interesting battle. They have stores (and) they have a brand that’s known by every American. We’re known pretty broadly and we’re known very well in the online segment, but they have broader branding.

They’re about five times larger than us in (annual) revenue. They’re about $5 billion compared to our $1 billion. So that’s a big benefit also. But we’ve got some assets, too. We’ve got $400 million in cash in the bank and no debt, and they have almost no cash and lots of debt. Their stores are both an asset and a liability, because as people leave stores it starts to be a real problem - what do you do with those leases and those kind of things. And we’re an Internet company through and through.

Our view is that the smart money is that they can’t sustain the battle. . . . Last year they were $251 million of positive free cash flow, calendar year. The first six months year to date, they’re negative $215 million. Big numbers and a big change.

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The retail giant’s online DVD service offers one great advantage over Netflix: Instant returns at the store. Trouble is, Netflix won’t let you leave.

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