Blockbuster remains the giant in the video business in terms of sheer revenue, but Netflix has increasingly been gaining ground. It's esimated that Blockbuster ($5 billion) generates almost 4 times as much revenue as Netflix ($1.4 billion), yet Netflix saw its business grow 12% last year, while Blockbuster's revenue dropped by 5%.
Both companies are aggressively trying to gain the upperhand in alternate channels of distribution. For example, Netflix recently announced an expansion of its agreement with MTV Networks, this time to allow its subscribers to stream more than 400 episodes of shows like South Park, Blues Clues, Dora the Explorer, iCarly, True Jackson, VP, and SpongeBob SquarePants. For its part, Blockbuster announced that it will rent and sell movies through TiVo several weeks before they become available on Netflix.
