Blockbuster does DVDs by mail for a flat monthly fee with the added benefit of allowing you to trade DVDs in-store. They do have on OnDemand streaming feature, but it's not available for a flat fee at the moment - you pay per movie. Hulu Plus does a lot of streaming of TV shows, but their movie selection is really weak.
After this latest announcement, I'm planning on canceling my Netflix by the end of the month or at least putting it on hold. Blockbuster is offering a one month free trial right now, so I'm going to try that out. In the meantime, I'm watching a bunch of stuff that's in my instant queue on Netflix so I get my moneys worth before I cancel.
Sadly, the nearest Blockbuster to my house - it was literally around the corner - closed a while back. There's another one within a few miles though, so it's not a huge long trip to trade DVDs at the store if I don't want to wait for them to come in the mail. I'm so ticked off at Netflix right now that I'm open to trying other services.
This whole Qwikster/Netflix split is ridiculous. Where so many other companies are integrating more and adding more services, they decide to make things less convenient and less integrated. The fact that there would be two queues (and two monthly charges from two different companies) is the height of idiocy. One of the things I liked best about having both DVDs and streaming was that I could tell when something in my DVD queue was available (or about to be available) streaming. Searching twice for the same movie is silly.
The split would make more sense if Netflix was expanding their streaming content dramatically, but unless they have something up their sleeve that we don't know about, that's not going to happen. They'll lose the Starz content in January, I think, so that's A LOT fewer good movies available streaming.
If you ask me, this is a big step backwards. I was sticking with them in spite of the price increase, but this split is probably the last straw for me.