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After Vanquishing Blockbuster, The Real Fight Begins For Netflix

Netflix may have beaten Blockbuster in world of physical DVD delivery but its toughest fight is still ahead of it, Verne G. Kopytoff reports, as the likes of Apple, Amazon and Google, as well as the cable TV providers, gear up to do battle in the digital realm. This is a battle that has little to do with delivery capability and a lot to do with who can best negotiate with Hollywood studios.

Netflix' Watch Instantly streaming service gave it an early lead but its catalog does not include a lot of recent Hollywood hits. Many of the company's deals require it to delay making titles available -- either on DVD or online -- until they have been on store shelves for 28 days.

"Today's war is for Internet television," says Jim Lanzone, the CEO of an online television guide Clicker. "And Blockbuster was never really relevant to Internet television." But don't count Netflix out by any means. It started a new service in Canada last week that offers a subscription to consumers for online streaming only, and it has proven to be very adept at signing up customers, which has given it the finances to improve its content over time.

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