Free flicks, art for Netflix users | CNET News.com: "Whether you use them as coupons or fridge art, you might want to hang on to those red Netflix envelope flaps. Blockbuster is offering free movie rentals for every Netflix envelope flap brought into participating stores December 5 through 21. In order to qualify, however, Netflix subscribers must also have a Blockbuster store membership. The membership is free and can be applied for at the store. "
Sic transit gloria munid. Blockbuster is desperate to compete against Netflix, but I don't think its strategy is going to work. Since Netflix doesn't charge per DVD, there's no advantage for consumers to exchange individual items for a rental. Internet-based distribution model favors virtual stores, not brick-and-mortar ones.
Traditional PC manufacturers lost to Dell in a similar manner.
tags: control point distribution video DVD internet
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