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Netflix, the on-line movie rental subscription service, did not contend with significant direct competition in on-line DVD rentals for six years until Blockbuster, the movie rental chain giant, entered the market in 2004 and began a price war. After that point, Hastings'' company scrambled to maintain share and remain profitable. Investors balked at the impact direct competition had on margins and the unlikely sustainability of price cutting against a behemoth competitor. When Amazon began signaling an intention to enter the market in 2005, Hastings had at least two major decisions to make: (1) whether to drop prices to match Blockbuster; and (2) whether to stay the course with regard to his historic strategy of ''business-as-usual'' when a competitor emerged on the scene.