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Online DVD rental services go to war
Oct 28, 2004
Contributor: mike chavarez
What do Wal-mart, Blockbuster and Amazon have in common? They all want to overthrow Netflixs' online DVD rental empire.
Amazon, the giant in online shopping, is going after Netflix. Netflix is the DVD rental pioneer. They have been imitated by many including Wal-mart and Blockbuster.
Amazon needs no introduction. They are the ecommerce leader on the net. They have a strong customer base and a strong review system that gives them a major edge. They also are well organized for national distribution, which works well with a rentals-by-mail service. Many are interested to see what develops. At this point Amazon denies any future DVD rental service.
Netflix is currently the online DVD rental leader, much like eBay is the online auctions leader. Amazon's online auction service has not effected eBay's success or popularity. Many people are even unaware that Amazon offers auctions. The same may hold true for Netflix.
Blockbuster recently joined the online rental fray with their own service. This is interesting since most people have joined the online DVD rental craze directly because of Blockbuster's in-store policies and outrageous late fees. It is also assumed anyone who joins their online service must pay any existing late fees from their local blockbuster store. This policy will no doubt send many potential customers at arms length.
To maintain competitive, Netflix announced that it will cut its monthly subscription charges from .99 to .99. Blockbuster in desperation responded immediately to Netflix's lowered prices and decided to reduce monthly subscription charges from .99 to .49.
Consumers will benefit from the influx of companies offering online DVD rental service. Prices will stay low and service will need to be above standard to keep customers.
We recommend trying Netflix because they have been around enough to refine their service. Since their core business is rentals, unlike their competitors, they cannot risk offering a poor service.
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