DVD Rental - The global growth
The past few year have seen a significant growth in the number of DVD that are rented by consumers. As the UK population become dominated by the explosion in ownership of DVD players there has also been a market move into rental of DVD.
The largest growth sector being online DVD rental. This is putting pressure on many of the traditional high street dvd renters such as blockbuster. This growth has lead to wealth of companies entering the race to dominate dvd rental in each region. However, because of the numerous market entrants the question needs to be asked who should we pick?
Many of the dvd rental companies offer a huge range of dvd rental titles but this can be misleading as the volume of dvd titles on offer does not necessary mean the best offering for the consumer. There may well be dvd rental titles that the user would never be interested in viewing. The better question to ask is how deep is your dvd rental range. This means how many copies of the dvd’s you want to watch does the company have.
If you are a consumer a telling question to ask you supplier is how many copies of ‘Pirates of the Caribbean’ did you buy on release (or the latest release)….. if they are a player then they will have purchased over 650. If it’s less than 100 then this will give you a measure of the size of organization that you are dealing.
The deeper the dvd rental portfolio then the more chance that you will be getting the film that you want to rent when you want to watch then.
Looking to the size of your company is the quantity of DVD’s that they own, a player will own 60,000 plus. This will again demonstrate the size of company with which you are dealing…it’s not the width (Number of DVD titles) but the depth (physical number of DVD’s owned) that consumers should be interested in.
There has also a fundamental change to the DVD rental business. There is now a two tier system which means that many of the on-line DVD renters margins are being squeezed as the studios are have now produced a DVD sale and a DVD rental market. This change took effect in November 2003 and has again put many of the weaker on-line renter at a disadvantage. A test for this is to look at the latest releases from your DVD rental company if they do not have the latest releases available they they may well be looking to buy secondhand copies of the new rental DVD which will delay your viewing pleasure of the latest films.
The key questions to ask your dvd rental company
1 - How many copies of the latest release did you buy - (Pirates of Caribbean should be greater that 650)
2 - What is the latest addition to you titles - Look to see the latest releases and it should be these, most titles are added either Monday or Friday.
3 - How many DVD do you have - Lot of companies say they have 13,000 + titles but do they have that many DVD’s!!! It’s very easy to buy a database full of titles but if they are not in stock then it’s not much point being on the web site!
Smaller dvd rental services closed down
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