Amazon thinks about DVD Rentals

Amazon DVD Rentals

Nov 18, 2004
Submitted by: Luis

There are rumors of a price war starting in the DVD rental business, and there may soon be a new comer to the market.

Netflix was the company that started the dvd rental business idea, charging a fixed monthly membership fee and mailing DVDs to what is now millions of customers.

Netflix charges a standard monthly fee in a wide range of titles (around 30,000). There are no late fees or hidden charges and Netflix even pays the return cost of postage on DVDs it ships to its members.

Blockbuster and Wal-Mart soon copied Netflix. Now Amazon.com is considering jumping on the new and growing dvd rental fad.

Anticipating Amazon's move, Netflix has lowered its monthly fee to under $18 a month. Blockbuster cut its fee also to under $18 as well as Wal-Mart, which is still the lowest price leader.

As successful as it has been, Netflix has some drawbacks. Customers don't get alerted to new releases like they want, and Netflix doesn't do a good job of matching customers' watching interests to dvd movies it has in stock. Amazon.com has great experience in doing both those things very well. Amazon also has a very large and established customer base it can market a new dvd club rental service to.

As Netflix, Walmart, BlockBuster and possibly Amazon compete, look for some great offers and lower rental fees.

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