I think Blockbuster will eventually win, but this is what they get for not being innovative and aggressive in their marketing. Someone else eats your lunch.
Why? Netflix has 85% of the online rental market. Blockbuster has about 12%. That's not a competition; that's a slaughter.
Blockbuster has storefronts, but so what? The only thing that counts for on the internet is name recognition and Netflix has just as much name recognition among net users as does Blockbuster.