Blockbuster Taking Advantage of Netflix Shortcomings

By Kenna McHugh 

Blockbuster owner Dish Network Corp. has started an online rental service that will stream movies and TV shows to Dish Network subscribers. Sound familiar? You bet. Blockbuster is taking advantage of Netflix shortcomings in hopes of gaining some new subscribers.

The new service will be available on October 1, Saturday. Calling it the new Blockbuster Movie Pass will allow customers to stream more than 3,000 movies to a television and more than 4,000 movies to a personal computer.

The only difference is that Netflix has more offerings, a total of 100,000 titles. The company also secured a deal with DreamWorks today, pumping their movies and TV specials through the video stream.

Blockbuster’s strategic move arrives just short of a few days after Netflix stocks plunged when the online video rental company said it was splitting its DVD-by-mail plan and online streaming service into two businesses. Not only splitting the two companies but raising the price of its basic plan by 60% and creating massive customer uproar.

Blockbuster was snatched up earlier this year by Dish Network after filing for bankruptcy. Some speculate Netflix’s dominance on the market caused the video rental store to file bankruptcy. With that said, Blockbuster is bundling the new streaming service with its DVD-by-mail plan starting at $10 per month. Sound familiar? That’s the same price as Netflix’s basic plan before they increased the price.

This isn’t the first time Blockbuster made a move against Netflix’s shortcomings. July of this year, Blockbuster made a grab for Netflix customers when the Netflix first announced its format change by launching a limited time, nationwide promotion for all Netflix customers who switch to Blockbuster Total Access.