This is a post from Christmas day and it sure payed off today for me.

Believe it or not Netflix (NFX) is the bigger company according to Market cap but most people assume its Blockbuster because of all their stores. Those store are part of the problem when it comes to competing in the online DVD rental business. You don’t need them. Netflix has no debt, none. Blockbuster has $1 billion. Netflix is way ahead of the game in the online side. Here’s where my opinion comes in. I think the future is online. I dread going to the store and what I want is gone. Now I realize that there is “guaranteed” availability on the new titles at Blockbuster but I don’t go to Blockbuster I go to the closest which is called Family Video (they rent porn, not that I rent it but what kind of “family” were they raised in). I also hate returning the stupid thing. I realize I don’t have time constraints but I still have to return the damn thing. Online is where its at. My mailbox is close, the packaging is so easy my 6 year old seals them up and puts them in the mailbox for me, and lastly I get 3 at a time so I can keep them coming. Now I’ve seen people getting 6 new releases at a time at the store but c’mon 3 is enough. Netflix has this down and every new user goes straight to the bottom line. The future? I think while Blockbuster is trying to catch up with online rentals Netflix realized that eventually movies will be downloaded and is preparing for this. You will go to Netflix online, hit a button, and it will be downloaded to you minimac DVR next to your stereo receiver. You will pay a set amount for a limited time rental and another for an own. The stores will be no more valuable than renting a billboard. . Invest in Netflix, don’t bother shorting Blockbuster. Winner Netflix