"The Model Has Changed" aka Creative Destruction: Netflix (+100%) vs. Blockbuster (-60%)
Brick and mortar video stores are under pressure from the online world, just like record stores and booksellers before them. We want to rent DVDs quickly by mail or pick them up at the supermarket. And that's if we bother handling a physical disc at all. Increasingly, we just stream movies on laptops and smart phones or download them right to our PlayStations or Xboxes, so we can watch them on our flat-panel TVs.
"The model has changed," said Maithu Bai, owner of Awesome Video, an independent video rental store on Freeport Boulevard. "It's not just here; it's across the nation. In these times, people want something new."
MP: The chart above shows that since last September, Netflix stock has more than doubled while Blockbuster's stock has declined by more than 50%.