Lots of people are switching from Netflix to Blockbuster, but Netflix isn't going to take this lying down. They have recently rolled out a service to a few users that lets you immediately start streaming movies from their library. The quality is reportedly comparable to a DVD which is pretty impressive. You don't have to wait for the whole thing to download like you do with some other services.
I don't see this being a huge draw in it's current form since you can only watch the movies on your computer, but I'm very excited to see electronic distribution gaining strength. Kudos to Netflix for giving users the ability to use this feature without increasing their subscription fees.
More info here and here.