Netflix’s primary competitors are Blockbuster and Comcast. These two companies have online and cable “video-on-demand” capabilities, making them threatening entities in terms of video rentals that can be viewed immediately. DVDs come standard, so the way that DVD rental companies have to differentiate themselves is through unique services. Although Wal-Mart and Best Buy have relatively large market shares, they do not operate in rental services via the Internet, nor do they have “video-on-demand” services. Thus, we do not include them as primary competitors given Netflix’s strategy of moving towards rentals through streaming video capability. Having been founded 12 years prior to Netflix, Blockbuster has been an existing competitor within the industry. Although Blockbuster has more of the market share than does Netflix, it saw negative sales growth from 2005 to 2008 (see Exhibit 17). Although Blockbuster has failed to create a sustainable strategy in which it can compete in streaming video, cable providers such as Comcast and Time Warner are increasing their “video-on-demand” subscribers. Netflix has to worry about this capability. Thanks to “On-Demand” features, these firms have the potential to steal market share from Netflix. With “On-Demand”, customers do not have to wait a whole business day to receive movies in the mail as they did with Netflix’s primary business model. Now that Netflix is moving into the streaming video category, it is becoming more of a direct competitor with such cable providers.