My wife now spends a lot of time in front of the TV breast-feeding the recently-arrived kid #2. So, I got her a Netflix Roku box. She was skeptical at first b

My wife now spends a lot of time in front of the TV breast-feeding the recently-arrived kid #2. So, I got her a Netflix Roku box. She was skeptical at first but is now quite pleased. If all movies were available this way, I think she'd forgo renting DVDs. Quality isn't as good as Blu-Ray, but it's better than an old-school DVD. How can Blockbuster compete against Netflix when its business model is based on the retail distribution of physical goods? Netflix is working hard to cannibalize its dvd-by-mail business and will end up with a much higher margin business as a result. IIRC, a few years ago, Blockbuster was telling investors that consumers loved the experience of going to the video store to pick out rentals! Don't worry, nothing's rotten here folks. BTW, the Roku works really well. Other than its screwy menu scheme (ok once you readjust your assumptions), it's a beautiful simple device.