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NetFlix vs Blockbuster

Netflix is an online video rental service available in the US. With the standard Netflix subscription which now costs 17.99 a month, customers can rent upto three movies at a time. Netflix is completely operated using the postal system and the NetFlix website.

Netflix is an online video rental service available in the US. With the standard Netflix subscription which now costs 17.99 a month, customers can rent upto three movies at a time. Netflix is completely operated using the postal system and the NetFlix website. Customers queue up their DVD's using the NetFlix website and Netflix sends the movies. Included with the movie is a pre-paid postage envelope in which the movie can be returned. Once a movie is returned, NetFlix will send the next movie. Customers with the standard plan can typically keep three movies out at a time, but higher and lower plans are available. Netflix was the leader in this market by a large margin, until the retail giant Blockbuster decided to move into this space. Blockbuster's entry into this has changed the dynamics of this a little for now. Which service would I recommend and why?

I have tried both the services and my experience has been as follows.

- I moved to Blockbuster from Netflix for two reasons, their service was $5 less than that of NetFlix (NetFlix was about $22) and they offered customer's coupons to rent two  movies from the retail stored. At the time of the offer, I felt it was a great deal and so I switched. Besides, I got a 1-month free trial as well.

- However, once I started to use the system, I felt that BlockBuster's service had some shortcomings.
- With NetFlix, I hardly had any movies that were back-logged. In the 3 months that I had the service, I hardly every got a back-logged message. With BlockBuster, almost 70% of the times, I get the backlogged message which means I dont get the movies that I want when I want, its only when its available. 
- Netflix has many distribution centers across the country which means that your movies arrive the next day after the movie has been added to the queue. With Blockbuster, their distribution process may not be as great. I live very close to a distribution center and I get the movies quickly but all may not be as lucky. 

- NetFlix also has a larger international movie choice. I see a lot of Hindi movies and with NetFlix, I can order some of the popular movies but with Blockbuster, their  is no such option.
   - NetFlix's user interface is also much easier to use, their search system is more accurate and in general a much more efficient user interface when compared to that of BlockBuster. 
  
Based on my experiences in the past few months, I strongly feel that NetFlix offers a much better customer experience. Once my monthly term is over, I will switch back to NetFlix. The only thing, I am thankful to Blockbuster for is that their entry has forced NetFlix to drop their price to $17.99. Lets see where this battle will take us.

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