I'm not sure that Netflix will be able to compete with the convenience of dropping off movies at a blockbuster store simply with a price cut. I'm a loyal Netflix customer and I walk past a BlockBuster 3 or 4 times a week with my Netflix envelopes in hand to take them back to the post office, which is another 3 or 4 blocks away.<p>This looks more like a case where a great idea has been taken over buy business people, who are now playing by old business rules. I'm not sure what it would take to compete in this field right now, but they need something more compelling then matching their competitors prices.<p>Their 'Watch Now' feature is great, although limited by the selection you can watch (although it is still in BETA) and I use to at least weekly while I am eating lunch or something else.<p>The real problem that they need to figure out is how to become more emotionally involved with their customers. How do they get back to the days when a subscriber would encourage all of their friends to join and saving $1 a month simply isn't enough.