Jim Cramer recently picked BBI to take off and since then it has (even before he recommended it the stock had performed well). Now that Blockbuster (BBI) has provided customers the option off online service, similar to Netflix (NFLX), they are back from the dead. Moreover, Blockbuster has loaded up on subscribers and by the end of 2007 they estimate that part of the business could be up 5 fold. BBI allows you to mail it in a la Netflix (NFLX) or return it to the store and this is seen and what is driving subscriptions.
However, this week Netflix (NFLX) has counter by offering downloads of television shows and movies. We will see in the next several weeks what impact the recent moves of each will have on their prices.
Here is Consumer Commentary’s take on Netflix.