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"We are emphasizing quality over quantity because we think quality is most important for our customers," he said. Blockbuster's on-demand service is starting out with recently released DVD titles such as "Get Smart, "Forgetting Sarah Marshall" and "Sisterhood of the Traveling Pants 2"
-- none of which are available through Netflix's instant-watching channel. Keyes also believes Blockbuster's service will provide a better-quality picture because all the video will be stored on the 2Wire box. Netflix shows, or "streams," the video over high-speed Internet pipes without anything being saved on a piece of hardware. The clarity of a streamed video can vary depending on the speed of the Internet connection being used. Los Gatos-based Netflix has been investing heavily in the instant-watching channel since unveiling it in early 2007. The option is getting used by more Netflix subscribers as it has become easier to connect the service to TV sets through the Roku player, DVD players and xBox 360 video game consoles made by Microsoft Corp. Once a dominant force in home entertainment, Blockbuster has been wounded by Netflix's DVD-by-mail service, which has 8.7 million subscribers, as well as the on-demand options included in cable subscription packages. Although its losses have been narrowing this year under Keyes' leadership, Blockbuster still hasn't been making money. The company has lost nearly $4.5 billion since 2001, including $14 million through the first nine months of this year.
[Associated
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