More than a price war

Posted on August 2, 2007


Over the past few months, there’s been a lot of talk about Blockbuster and Netflix and their ongoing battle for customers.  Most recently, GigaOm posted this analysis of the price war between the companies. 

Now, I must admit that Netflix won my heart a long time ago, and that it was about much more than price.  Netflix is another one of those companies that uses a consistent tone in all their outgoing communications, which goes a long way to making me a loyal customer.  They also just added some cool features that encouraged me to remain on board: lowering their price (not really a feature, but a perk) and allowing me to watch movies online (thanks, I hate waiting).

Previous generations have argued that we should support brick and mortar retailers, particularly the mom-and-pop shops that were threatened by the rise of Amazon and others.  Because I love boutique shopping, I’d never wish those retailers out of business (Blockbuster is a different story).  However, what I’d really like to see my generation support is the rise of Web 2.0 startups and small online companies that are taking on the brick and mortar big guns. 

Why?  Because for the most part, it’s my generation that’s out there making it happen.  These are the same people we went to business school with, they’re our friends – both online and off (more on social network overload later), and it’s an inspiration to see that one small idea – like Netflix – can throw an established company – like Blockbuster – into a marketing frenzy.

And the winner is…


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