My plan, if I were CEO of Blockbuster, would be simple (if undignified): compete on price. A few years ago I lived near a Blockbuster -- I had a card but I har

My plan, if I were CEO of Blockbuster, would be simple (if undignified): compete on price. A few years ago I lived near a Blockbuster -- I had a card but I hardly ever used it, because with rentals going for something like $6.50 (compared to $9 in the cinema or maybe $10 to buy the DVD outright at Walmart) what was the point? Then I moved to a new place, where my local video shop was an independent shop where DVDs rented for $3 a night. At three bucks a rental, I found myself watching a lot more DVDs, and of course spending a lot more money than I had previously. (Oh, and then I moved away from the cheap video store, so now I have Netflix.) If Blockbuster cut its prices to $3 per movie per night, it would get a lot of people thinking "Wait, am I _really_ watching enough movies per month to make my Netflix subscription worthwhile?" This would, of course, only be a stop-gap measure, while they work on getting a good online-delivery system going for the long term.