Consumers have numerous options when it comes to viewing movies at home. Two of the most used are renting movies at the neighborhood video store and renting movies via an online service. An informal survey was recently conducted on a property electronics/entertainment site regarding the movie viewing habits of website visitors. The results pointed to a few of the misconceptions that also exist about online rental of DVDs by consumers that have not yet tried the service.
Participants in the survey were asked numerous questions, including how often they watch movies in the home, whether or not they rent movies online, and or even, why. Nearly 28% of those responding indicated they rent movies online. Of the remaining, probably the most frequently cited reason behind not utilizing an online movie rental service was concern which centered around the perception that online movie rental could be higher priced than the neighborhood video store. When looking at a couple of scenarios it becomes evident which method tends to be more affordable.
For people who indicated they watch only 1 to 3 movies each month the savings from renting online are small. Renting 2 movies each month at the neighborhood video store would average around $7.40 whereas renting from Netflix for instance, should they chose the program that has a control of 2 movies each month, would run $5.99. After getting a video at the neighborhood store the user could have overnight or simply 1 week to come back the movie but an online rental would allow them to keep the movie for an unlimited amount of time.
For anyone people who responded they view 1-3 movies per week, the savings could be more significant. As an example myflixers, renting 8 movies each month would run around $29.55 at the neighborhood store and as low as $14.99 online should they find the “2 out at any given time” plan or $17.99 for the “3 out at any given time” plan. As viewing increases so does the likelihood of experiencing greater savings.
For those who responded they view 4 movies per week (averaged out to 16 per month) the typical cost at the neighborhood store could be $59.04 while online rental could be $23.99 allowing the user “4 out at any given time “.Renting by way of a service like Netflix generally doesn’t limit exactly how many movies an individual views but rather, exactly how many movies they could have out at any given time. Therefore rentals are just about unlimited with most of the plans.
The second most frequently cited reason behind not utilizing online movie rental services was that the in-patient 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 allow anyone to decide at 6:00 p.m. that they would like to see The Queen and receive it so that they can be viewing the movie by 8:00 p.m. However, the delay for receiving movies selected through the mail is 1 business day which would seem sufficient generally in most instances.
The ongoing future of DVD rental may be changing however as Netflix announced in early 2007 that customers would now have the option of watching movies instantly using a streaming service that’s now available for some movies. The service must be quicker than most download services as streaming allows viewing of the movie since it is streamed rather than waiting until download is complete. Although a complete transition from the existing mail delivery system to a download kind of service will need time, it’s clear that immediacy will only continue to improve. It would seem that other online movie rental services would follow suit in coming years in order to compete.
Consumers who have not been initiated into the web movie rental world also may be unacquainted with other benefits/features of such services.
* Greater selection- A typical video store has 10,000 to 15,000 titles available whereas the Netflix online movie rental service has over 80,000. This may seem to get rid of the issue of consumers coming to the store only to find that there’s nothing there they really want to see.
* There are no fees linked to the delivery and return of DVD’s; and there’s no planing a trip to and from the store as movies are delivered with their door or with their home via streaming.
* Movie selection is assisted by reading user reviews through online programs like Netflix.
* Trials of online movie rental services are often risk free as you can find free trials available and no cancellation fees.
* There are never any late fees nor restrictions how long a film could be kept.
Misconceptions about online movie rental services appear to limit the participation of a substantial amount of consumers. Online movie rental probably provides the services that a lot of consumers want, even if they don’t know it yet.