Netflix and local cable’s Video On-Demand movie services have become increasingly popular over recent years, as they allow consumers to watch movies without leaving home. These in-home movie services, have given Blockbuster movie stores a run for their money the past few years. Blockbuster was recently sold to Dish Network in a bankruptcy auction for $320 million. Dish Network now owns the rights to Blockbuster stores and services including internet streaming of movies, which are expected to help Dish Network expand its stake in the market. These recent developments haven’t slowed Netflix, as they continue to dominate the market for in-home movie services.
Convenience and Low Cost Wins
The Netflix appeal is, simply, convenience. There are no trips to the movie store to rent or return movies, and no more late fees. Netflix allows you to order movies that can be delivered to your home through the mail, and returned in a pre-paid envelope for around $10 a month. Movies can also be streamed over an internet connection at no additional cost. There is no limit to how many movies you can rent and no due dates or late fees for returning movies.
The simple convenience Netflix provides has lead to it becoming the largest in-home movie provider in North America. A recent study by network company Sandvine shows that Netflix services nearly 23.6 million customers in the U.S. and Canada, and accounts for around 30% of web based bandwidth traffic during evening hours.
Despite the continued growth and success Netflix has displayed over the last few months, they aren’t the only in-home movie provider fighting to be the best. There are many internet based services like, Hulu, AppleTV, GoogleTV and DishNetwork’s new venture with the buyout of Blockbuster that intend to take their share of the market. Financial analysts warn Netflix they should keep a competitive eye out for the prize.