Read the case, answer the questions:

• Ask yourself if you really understand what jobs Netflix and Blockbuster do for their customers. How would you describe what they each offer?
• Would you have been long or short Blockbuster stock at the time of the case? How about Netflix? Why?
• Compare Netflix and Blockbuster’s respective profit models. How might these differences affect their respective strategies? Are the models competitive or is one superior to the other? Why?