Netflix

The problem with Netflix is that all the new movies are never available. If you don't send in an old DVD the day one of the new DVDs release, the new titles will show up in your rental queue as "Long Wait" or "Very Long Wait" or "When a Cold Snap Hits Hell". I use Netflix to see movies I missed in theaters, don't think I'll want to own, but which might distract me for an a few hours if I'm home one night and looking to vegetate. But usually those are new releases which, as I noted, are pretty damn hard to get your hands on. They need to solve that issue, or customers into instant gratification will head back to their local video store, where hundreds of copies of those titles will line the shelves.
Instead of Super Troopers, Windtalkers, Changing Lanes, or We Were Soldiers, which are near the top of my Netflix queue, I get sent an older movie from way down in my queue: Go Tigers! or Blue Velvet or Malice. Netflix needs to be smart and buy up stronger on hot new releases. If they end up with too much stock on those, sell them cheap as used copies or something. Or they should develop a feature where you can send in an old movie and indicate that you don't want them to pick a movie from lower on your list until the top movie in your queue is ready to ship.
Secondly, back in the old days, if a movie came out in two DVDs, one fullscreen, one widescreen, they only offered the fullscreen edition. A big turnoff for cinephiles. I think they've gotten better about that but it was always those little details which always annoyed me. They really haven't improved their site much over time and you'd think one or two smart product managers teamed with a few engineers could keep that site innovating. Now Blockbuster, with their in-store version of the Netflix model (pay a monthly fee, keep a set number of movies out at all times), and Wal-Mart, with their Netflix clone, are moving in. They have deeper pockets and can offer more cutthroat pricing. Netflix needs to stay nimble to stay solvent.