Blockbuster will be thrilled to learn that they're not competing with Netflix. You should hurry up and tell them before they go out of business.

blockbuster also offers flat-rate subscription services.

...

I get your humor, I just wanted to be precise :)

They're both selling content to watch on your TV. Albeit with different business models. They are both after $X a month, just in different ways.

yes. I can rent 9 tv episodes per month for the price of netflix's most common plan.

I can't see any reason why they would do this now. Apple already have the infrastructure to distribute the content, the user accounts, relationships with studios etc.

Apple could set up Netflix in a couple of months - it's little more than a new pricing structure. Any acquisition would be for existing subscribers only, and would be way below today's NFLX valuation.