Old and New

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If you want to see what a difference a technological sea-change can make, look at the charts of Netflix (NFLX) and Blockbuster (BBI). Netflix is up about 620% whereas Blockbuster is down about 96% from its peak.

As with most other things, it all seems so obvious in retrospect. Who would want the hassle of driving to a rental shop, looking at a limited selection of movies, taking it home, watching it, having to rush it back before you pay late fees (which involves a 2nd drive to the store), when you could instead just use your mailbox?

Maybe that's where NFLX has over 27 times the market cap of former heavyweight Blockbuster. Innovative thinking wins the day again!