No Wonder Blockbuster Went Bankrupt (NFLX) (DISH)

Netflix (Nasdaq: NFLX) shares haven't moved too much this afternoon, following a release from Blockbuster, part of Dish Network (Nasdaq: DISH) now, that it is offering Netflix customers a 30-day free trial to its Total Access program.

Following expiration of the deal, Blockbuster says that Total Access will be $9.99 per month for one DVD, and $14.99 for two DVDs out at one time.

It's no wonder Blockbuster is in bankruptcy.

Should people want to rent a DVD, there are plenty of CoinStar's (Nasdaq: CSTR) RedBox's around the area (though at $1.50 per night, it may not make fiscal sense for some). Want to stream new movies or tv shows? Try Amazon.com (Nasdaq: AMZN), Hulu or another service on your Blu-ray, Xbox, PlayStation, or other player.

The point is, Netflix wants people to not rent DVDs, it's just a cost decision. If anything, Dish Network (Nasdaq: DISH) management shouldn't have approved the press release, because Netflix subs are a specific bunch, not likely to switch easily, and it seems like a waste of money.

Speaking of waste's of money, one final point: at $15.98 for unlimited streaming and a DVD, Netflix is still cheaper than $7.99 + $9.99 for two separate services.

Shares of Netflix didn't flinch on the announcement, closing down 4 percent on the session.

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