Netflix delivers its comprehensive library of movies and TV shows online and through the mail in their ubiquitous red envelopes.
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This may be a good buy short term, especially as Blockbuster slowly dies. But long term, people are not going to rent DVDs or download movies to their computers. They will download them to their DVR players. Comcast (On Demand), Verizon, and similar cable/internet providers will win the movie rental war. Think about it. Do you want to wait a day or more for a movie to come in the mail? No. Do you want to watch it on your computer? No. With On Demand, you get it immediately, on your TV, where you want it. Cable providers are getting people hooked on DVR through free trial periods. At the same time, the On Demand libraries are growing. There may be a niche market for computer movie downloads for watching on Ipods or whatever, but Apple has a leg up there. In ten years Netflix will be nothing more than the answer to a trivia question.