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Netflix Founder Predicts End of DVD Rental Business

netflix-reed-hastingsReed Hastings, CEO of online DVD renter Netflix, has acknowledged that it is only a matter of time before people stop renting DVDs. “Renting DVDs through the mail in 25 years? For sure, that’s not going to exist,”.

Hastings acknowledged that the end could come far sooner than 25 years. However, he added, “If one thinks of Netflix as a DVD rental business, one is right to be scared. If one thinks of Netflix as an online movie service with multiple different delivery models, then one’s a lot less scared.” Hastings said that Netflix is “aggressively” investing in its Internet delivery system, putting $40 million into it this year. “We’ll be up to 5,000 films by the end of the year,” he said.

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Netflix Distribution Centers

Netflix Distribution Centers

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STATE

[Code] Address
# Alabama
P.O. Box 830410, Birmingham, AL 35283-0410
# Alaska
PO Box 196240, Anchorage, AK 99519-6240
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Online Rentals 25% of UK Total Rentals

Market leader Lovefilm now estimates that online DVD rental as a whole now accounts for 25% of all DVDs rented in the UK, including all the bricks-and-mortar stores. Not bad for an industry which didn’t exist just a few years ago.

Source: Marketing

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Lovefilm Possible Sale or Float

lovefilm UK DVD rental market leader lovefilm is considering a sale or a £100 million pounds stock market flotation.  A stock market float could be up to year away though, according to sources.

The value of company stems from the nearly 600,000 subscribers it has amassed in just 4 years of business. It generates more than 6 million postal transactions each month. In 2005, revenues from the combined Lovefilm / Screenselect group were £25 million pounds, though they have expanded considerably since then.

Lovefilm.co.uk

Blockbuster Total Access – Better than Netflix?

DVD Collection
Blockbuster: 90,000+
NetFlix: 100,000+

Format Neutral
Blockbuster: Click on the movie title to see if high definition edition (HD DVD, BLu-ray) is available
NetFlix: Set your preferences to default to the format of your choice, when available

Perks
Blockbuster: Blockbuster Total Access allows customer to return DVDs to your local blockbuster shop.
NetFlix: FREE Streaming Movies via Netflix set top box or Xbox 360.

Pricing
Blockbuster: $5.99 (1 at a time, 2 per mo.), $7.99 (1 at a time, 3 per mo.), $9.99 (1 at a time), $14.99 (2 at a time), $17.99 (3 at a time), $24.99 (4 at a time)
NetFlix: $4.99 (1 at a time, 2 per mo.), $9.99 (1 at a time), $14.99 (2 at a time), $17.99 (3 at a time), $23.99 (4 at a time), $29.99 (5 at a time), $35.99 (6 at a time), $41.99 (7 at a time), $47.99 (8 at atime)

Speed of Deliver
Advantage: NetFlix has a larger Shipping network around the country.

Overall Customer Service
Tie

Both services have their positives and negatives. Depending on what is most important to you will determine which service you’ll be most satisfied with. But for those who said Blockbuster was a dinosaur headed for the graveyard, guess again. They’ve created an online service that rivals what was the market leader. What happens to the industry next is anyone’s guess.

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Movie Gallery to open online rental service

Movie Gallery, a U.S. movie rental chain, on Monday said it plans to open an online DVD rental service later this year because it has been losing customers to Netflix and Blockbuster’s online service.

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netflix number

netflix numberThe phone number for Netflix customer service is 1-888-NETFLIX (638-3549).

Another phone number is on the How It Works page, but you can’t access it while logged in. That number is 1-800-585-8131.

Customer service is available between the hours of 7:00 AM and 12:00 AM (midnight), Eastern time.

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