Analyzing Netflix from the point of view of the resource-based model of above-average returns, what is the major threat to Netflix from Blockbuster?

Question

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The major threat to Netflix from Blockbuster is that Blockbuster can imitate Netflix's resources and capabilities relatively inexpensively. This is because Netflix's business model and competitive advantage were based on its DVD-by-mail service, and Blockbuster had the resources and capabilities to imitate this service quickly and at a lower cost. This threat is evident in Blockbuster's decision to launch a competing DVD-by-mail service shortly after Netflix's success became apparent.

Analyzing Netflix from the Point of View of the Resource-Based