Netflix is one of my favorite dotcom companies. And one that seems to have survived fairly well. Because of this they've been getting more competition:

Wal-Mart cues up a rival to Netflix. The retail behemoth is testing a new DVD subscription-rental program, further clouding the future of Netflix and its Web-based mail-order DVD service. [CNET News.com]

The thing that makes netflix work for me is how easy it is. You don't need to go anywhere except to your mailbox to get your movies. It just isn't quite as easy for me to get to a Blockbuster (or a Wal-Mart for that matter).