Avod and Netflix are competitors because they have many titles in common. I purchased a couple of episodes of Prison Break from avod to try it out now it is on netflix I don't have to buy anymore. Netflix hurts avod sales.
I would be happy if this turns out to be an HD 5.1 Starz replacement. Starz streams are so bad they are often not worth watching.
Amazon VOD and iTunes are pay-per-view models and typically get movies soon after the theatrical run (or after a particular season ends for a television show). On the other hand, Netflix - and it appears RedBox - are subscription based models and typically get access to the material after the pay-per-view outlets have had them for awhile. While at some point all streaming/download outlets (Amazon, Netflix, PS3 Store, ITunes, etc.) will have access to the content, I think the difference is that when you pay more (Amazon and iTunes) you get faster access to material; therefore I see Amazon and iTunes as competitors and Netflix really being more complementary to those services. If you want to get the movies as soon as possible, pay a little more through Amazon or iTunes. On the other hand, if you want to pay less and you don't mind waiting a little longer, it will eventually make it to Netflix.