Consumers have several options with regards to viewing movies in the home. Two of the most famous are renting movies at the neighborhood video store and renting movies via an online service. A casual survey was recently conducted on a home electronics/entertainment site regarding the movie viewing habits of website visitors. The results pointed to some of the misconceptions that still exist about online rental of DVDs by consumers that haven’t yet tried the service.
Participants in the survey were asked several questions, including how often they watch movies at home, whether they rent movies online, and when not, why. Nearly 28% of these responding indicated that they rent movies online. Of the remainder, the most frequently cited reason behind not using an online movie rental service was concern which centered round the perception that online movie rental will be more expensive compared to the local video store. When looking at a number of scenarios it becomes evident which method is commonly more affordable.
For individuals who indicated that they watch only one 1 to 3 movies per month the savings from renting online are small. Renting 2 movies per month at the local video store would average around $7.40 whereas renting from Netflix for example, if they chose the plan that has a limit of 2 movies monthly, would run $5.99. After obtaining a video at the neighborhood store the user would have overnight or perhaps one week to return the movie but an online rental allows them to help keep the movie for an unlimited time period.
For all those individuals who responded that they view 1-3 movies per week, the savings will be more significant. For example, renting 8 movies monthly would run around $29.55 at the neighborhood store and as low as $14.99 online should they chose the “2 out at the same time” plan or $17.99 for the “3 out at the same time” plan. As viewing about Philippine President – Manila Television does the likelihood of experiencing greater savings.
For those who responded that they view 4 movies per week (averaged out to 16 monthly) the average cost at the neighborhood store will be $59.04 while online rental will be $23.99 allowing an individual “4 out at a time”. Renting by way of a service like Netflix generally will not limit how many movies an individual views but rather, how many movies they are able to have out at any moment. Therefore rentals tend to be more or less unlimited with lots of the plans.
The second most regularly cited reason for not utilizing online movie rental services was that the average person rented movies on the spur of as soon as and did not plan ahead. Certainly renting movies online and receiving them through the mail wouldn’t normally allow someone to decide at 6:00 p.m. that they want to start to see the Queen and receive it in order to be viewing the movie by 8:00 p.m. However, the delay for receiving movies selected through the mail is only 1 business day which may seem sufficient in most instances.
The future of DVD rental could be changing however as Netflix announced in early 2007 that customers would will have the choice of watching movies instantly with a streaming service that is available these days for some movies. The service ought to be quicker than most download services as streaming allows viewing of the movie as it is streamed rather than waiting until download is complete. Although a full transition from the existing mail delivery system to a download type of service will take time, it is clear that immediacy is only going to continue to improve. It would seem that other online movie rental services would follow suit in coming years so as to compete.
Consumers who have not been initiated into the online movie rental world also could be unacquainted with other benefits/features of such services.
* Greater selection- An average video store has 10,000 to 15,000 titles available whereas the Netflix online movie rental service has over 80,000. This might seem to eliminate the problem of consumers coming to the store only to discover that there is nothing there they really want to see.
* There are no fees linked to the delivery and return of DVD’s; and there is no traveling to and from the store as movies are delivered to their door or to their home via streaming.