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The Honolulu Advertiser

Updated at 1:38 p.m., Tuesday, December 5, 2006

Blockbuster offers free rentals to lure Netflix users

Advertiser Staff and News Services

Blockbuster stores in Hawai'i are among 5,000 nationwide that will offer free in-store rentals to users of competing online movie rental service Netflix Inc.

Blockbuster, which said all of its stores in Hawai'i will be included in the program, is trying to take marketshare from Netflix while boosting its subscriber base.

Netflix subscribers can get one free rental at Blockbuster stores for each address label they bring in from their Netflix mailing envelopes.

The offer to Netflix subscribers, which runs until December 21, comes after Blockbuster began allowing subscribers to its own online rental service to swap DVDs they received in the mail at Blockbuster stores.

The program, called Total Access, highlights the main difference between the two competitive services: Blockbuster has stores where consumers can immediately satisfy a desire for a particular movie.

Netflix boasts overnight delivery of DVDs to most of its 5.7 million subscribers. Netflix said it will reach 6.3 million subscribers by year's end.