"I can tell you I never want to see the movies that come by mail," is what Blockbuster chief executive Jim Keyes had to say during his company's most recent earnings call. Well, apparently, someone does.
Netflix announced today that it has delivered its 2 billionth movie by mail - a huge number for a service that launched a decade ago. Meanwhile, Blockbuster, a name that has been synonymous with movie rentals for much longer than that, is struggling to hang on to customers as they switch to over-the-mail options and more recently, over-the-Internet options for watching movies.
Interestingly enough, Netflix's 2 billionth movie was a Blu-ray. Netflix recently came under some fire for raising its Blu-ray rental rates. And it's a niche audience, with some 90 percent of Netflix subscribers still on DVD-only rental plans. The Blu-ray format itself is having trouble gaining a foothold, as people continue to balk at high Blu-ray player and disc prices, when compared to DVD.