Jennifer Netherby has written a great article for DVD Exclusive Online in response to the Netflix investor Webcast which took place last week. The article basically says that Netflix is too big to be defeated now, and although Blockbuster will grow, it will never catch up.
"'[Netflix has] reached the stage of critical mass where nobody's going to get rid of them, nobody's going to come in and make them obsolete,' analyst Dennis McAlpine of McAlpine and Associates said."
"Tom Adams, president of Adams Media Research, said he expects Blockbuster will continue to grow its business and narrow the subscriber gap with Netflix because of its ability to ship from stores and its strong consumer presence. But he believes Netflix will be able to maintain its lead."
"There's a tradition of what's called the first mover advantage, and so there was little reason to think that Blockbuster was simply going to overwhelm them," Adams said. "[Netflix] got that advantage by not just being first but by being very good."
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