Imagine waking up tomorrow morning with no access to the Internet. No e-mail. No news. No streaming video.

Even though the Internet as we know it is only a couple of decades old, this is still a difficult scenario to comprehend. Entire businesses - literally thousands upon thousands of jobs - exist because of the web.

Now we’re entering an age of Web convergence. Every single element of our old media - radio, television and print - is migrating to the Internet at breakneck speeds.

Within the next five years, the depth of offerings on the Internet and the global population connected to them will grow exponentially. In fact, the worldwide Internet economy is now growing at such a rate it will be next to impossible for content providers to keep up…

Bandwidth is being eaten up left and right by more data-intensive offerings, such as streaming video. Young people are also gobbling up

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Just when it thought the competition was leveling off, Blockbuster (NYSE:BBI) faces another nasty barrage. The company missed estimates yesterday, now the Street is forcing it to pay.

Competition can be so mean. In a country where the government is doing its best to make sure we  all have equal incomes and resources, you would think companies like Redbox, Netflix (NASDAQ:NFLX) and TiVo (NASDAQ:TIVO) would take it easy on Blockbuster (NYSE:BBI) for a few quarters.

After all, isn’t it “un-American” to force your fellow citizens into bankruptcy?

Banks can’t force homeowners delinquent on their mortgages out of their houses. General Motors (NYSE:GRM) and Chrysler were saved. How in the world can we stand by and watch Blockbuster go under? Where will I rent my Saved by the Bell Reunion video?

While it is not surprising to see a company that has done the absolute

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div style="text-align: justify;"I think span style="font-weight: bold;"Netflix (NASDAQ:NFLX)/span will find buyers today. Here's why:br /br /span style="font-weight: bold;"- Wedbush/span is upgrading NFLX to Buy from Hold this morning.br /br /span style="font-weight: bold;"- Lazard/span is out with positive comments saying May website traffic suggest possible 2Q09 subscriber upside. If monthly churn in 2Q09 is 4.4%, consistent with their model and Netflix guidance for a normal seasonal rise, then Netflix, based on the stronger comScore correlation, would exit 2Q09 with 10.7 mln subscribers, vs guidance for 10.4-10.6 mln, and consensus near the midpoint of guidance.br /br /span style="font-weight: bold;"- Citigroup/span is out reiterating their Buy and $52 tgt on the name after meeting the co's management. WThey view the 4 broad factors from their 4/26 upgrade as well intact: 1. NFLX has one of the sector’s strongest fundamental outlooks; 2. NFLX is one of the sector’s most economically defensive stocks; 3. NFLX ...

Will Frugality Remain?

Alexander Wissel, Editor in Chief, Investment U

We’ve heard how over the past few months Americans have closed their wallets and started saving more. The national savings rate has climbed for the first time in decades.

This newfound zeal for saving money has been a boon for many companies that help consumers save or cut back. Companies like Netflix (Nasdaq: NFLX), Rewards Network (Nasdaq: DINE) and Wal-Mart Stores (NYSE: WMT) have thrived on cost conscious consumers.

The question is how long can this last?

The latest reports from Gallup have noted a trend for consumers spending less. But are the cost cutbacks voluntary or forced. Consumers cutting back to be frugal is quite different from bargain shopping because you have to.

Time will tell if this

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The movie rental industry is in trouble. Blockbuster is in the headlines today as its shares fall by as much as 30%. Is a bankruptcy filing in the cards?

I watch about one movie each month, if I am lucky, and most of those are borrowed from a friend or relative’s Netflix (NASDAQ:NFLX) account. So it is safe to say Blockbuster (NYSE:BBI) is not getting any money from me… and neither is Netflix.

Looking at Blockbuster’s latest earnings report, it is not getting much money from anybody.

The year’s first quarter was far from a good one for the movie-rental business. Blockbuster claims its drop in sales was due to a lack of good movies reaching the rental market and the closing of some stores, but more likely it is a lack of a good business model that is driving the company slowly but surely towards bankruptcy.

Over the

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Can you hear that, Blockbuster (NYSE: BBI)? It’s the sound of obsolescence. With the news that LG Electronics will be producing high-definition televisions that will stream movies from Netflix (Nasdaq: NFLX), you can add another nail in the coffin for Blockbuster.

At first, Netflix’s threat to Blockbuster seemed laughable. But now, with more consumers cutting back and looking for instant entertainment, low monthly costs and the ease of Netflix are really starting to squeeze Blockbuster.

And that’s not to say that Blockbuster hasn’t given its rivals a hand. There was the misguided and disastrous attempt to merge with financial-albatross Circuit City (OTC: CCTYQ), the botched roll-out of the “no more late fees - just other fees” program and the complete failure to see how a vindictive fee and collection system could alienate its customers.

But the competition isn’t just coming from Netflix. Redbox’s easy-to-use, dollar-a-day

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Blockbuster (NYSE: BBI) - Another Nail In The Coffin

Can you hear that, Blockbuster (NYSE: BBI)? It’s the sound of obsolescence.

With the news that LG Electronics will be producing high-definition televisions that will stream movies from Netflix (Nasdaq: NFLX), you can add another nail in the coffin for Blockbuster.

At first, Netflix’s threat to Blockbuster seemed laughable. But now, with more consumers cutting back and looking for instant entertainment, low monthly costs and the ease of Netflix are really starting to squeeze Blockbuster.

And that’s not to say that Blockbuster hasn’t given its rivals a hand. There was the misguided and disastrous attempt to merge with financial-albatross Circuit City (OTC: CCTYQ), the botched roll-out of the “no more late fees - just other fees” program and the complete failure to see how a vindictive fee and collection system could alienate its customers.

But the competition isn’t

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NFLX: The Netflix Index

Nuevo-indices, like Estee Lauder’s (NYSE: EL) “lipstick index,” the bartender index or the video game index, all have their day in the sun during market downturns. Often they’re dismissed as distractions, or excuses for poor performance.

But their fundamentals are based on real consumer trends and psychology.

Areas like entertainment, clothing and luxury items are often cut back during downturns. But that doesn’t mean they aren’t replaced with substitutes. Frugal doesn’t mean spendthrift. Consumers are still buying.

Purchases are justified by their reduced cost, or the “savings” from not spending money elsewhere. Entertainment like Netflix (Nasdaq: NFLX) carries a cost – but nothing like going to a movie three times a week. It’s this mentality that we can find profits in.

Many companies have benefited from cost-conscious shoppers and savers, and others are benefiting from negative psychology.

Kraft Foods (NYSE: KFT) and

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Well, it seems Blockbuster (BBI) finally acknowledged the future. In a rumored $20 million deal, they are to acquire Movielink which is currently owned by several Hollywood studios.