Q. How serious is the threat from Blockbuster now?
A. ...we certainly do take the Blockbuster threat seriously. The difference is that we've got five years of experience. We're shipping nearly a million movies a day, so we've got tremendous operational perfection in what we do. We've had a lot of practice at it. We have overnight delivery to nearly 90% of our subscribers.
Q. ...is Netflix worth the extra $2?
A: Netflix is worth the extra $2 because the service has consistent overnight service to 90% of our subscribers, we have great recommendations, we've got a well-developed and mature site, and the service works extremely well. All people have to do is ask their friends who are using Netflix to see that. We think consumers will prefer the service that is well developed and mature at a slight price premium, which is $22.