Movie rental chain and always-12-months-behind-the-times Blockbuster has decided to start mailing DVDs to customers' homes. This direct assault on the NetFlix business model comes nearly 8 years after the DVDs-by-mail business model was started by Netflix. So what does Blockbuster offer, you ask?
Up to three titles out at a time
No return dates or late charges
Unlimited rentals
2 free in-store movie rentals/month
$19.99 per month
Blockbuster is marketing the deal through AOL and MSN which they think will allow them to reach 75% of all Internet users in the US - a number that seems highly inflated and optimistic. Blockbuster has set up 10 delivery centers across the US to handle this new service, but is planning on utilizing the local store chains for delivery by next year.