I can't really see Blockbuster crawling out of its hole of debt and loss to actually challenge Netflix, but assuming it were possible, I'd be fine with it. That would just mean Netflix would have to work harder to keep their money coming in, more aggressively acquiring the rights to shows and movies, providing better deals, etc. And if Netflix somehow lost, I would assume it'd be because Blockbuster became a better product.. In which case.. Good for us.
There is a new frontier in entertainment, with it being the new VOD and streaming mediums. Netflix has led the charge into this new frontier with original shows that have garnered Emmy nominations and wins. Having Blockbuster reinvent itself so it too puts out original streaming content will only help the entire entertainment industry and provide consumers with new and better choices for shows and films.
Blockbuster cannot compete with the likes of Netflix and Amazon Prime simply because of how easy it is to stream from Netflix, rather than having to visit a Blockbuster store and overpay for renting a movie/box set. Even if Blockbuster was able to create its own streaming service, I highly doubt the price would compete with Netflix's bargain of a price per month. Blockbuster is done, streaming has took over.
I could see the possibility of Blockbuster getting back in the game as a streaming movie option, but they won't create a whole lot of waves unless they ad very popular movies and TV shows; adding original content can be an added perk, but make it worthwhile. Plus, I can see some people being skeptic about subscribing to a service that was once known for being in the video renting business, and how much relevance they know have in the public interest,
Blockbuster is synonymous with old-school VHS tape rental and rudimentary technology. The company did not keep up with the latest movie watching technology and that is what in part, put them out of business. Going out of business is now attached to the Blockbuster brand name. Going back into business under that name would be a mistake.
Netflix, HBO and Amazon are all vying for streaming dominance and all are doing so by producing high quality, alternative and original programming. This is a very difficult market to compete in and one which a company such as Blockbuster who have taken such financial hits would not be viably able to compete in.
Blockbuster faces an uphill battle competing against Netflix and Amazon. They've bee too far out of the game and no one wants to associate with a losing brand. Anything is possible, but the other companies have such a stronghold on the industry that Blockbuster would have to have deeper pockets, which seems unlikely.