Consumers have a number of options as it pertains to viewing movies at home. Two of the most used are renting movies at the area video store and renting movies via an on the web service. An informal survey was recently conducted on a house electronics/entertainment site about 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 which have not even tried the service.
Participants in the survey were asked a number of questions, including how often they watch movies in the home, if they rent movies online, and if not, why. Nearly 28% of those responding indicated they rent movies online. Of the rest, probably the most frequently cited reason behind not having an online movie rental service was concern which centered around the perception that online movie rental will be higher priced than the area video store. When considering a couple of scenarios it becomes evident which method is often more affordable.
For individuals 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 area video store would average around $7.40 whereas renting from Netflix as an example, if they chose the plan that’s a limit of 2 movies each month, would run $5.99. After obtaining a video at the area store the consumer could have overnight or maybe 1 week to return the movie but an on the web rental would allow them to help keep the movie for an unlimited period of time.
For anyone individuals who responded they view 1-3 movies each week, the savings will be more significant. For instance, renting 8 movies each month would run around $29.55 at the area store and only $14.99 online if 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 individuals who responded they view 4 movies each week (averaged out to 16 per month) the average cost at the area store will be $59.04 while online rental will be $23.99 allowing the consumer “4 out at any given time “.Renting via a service like Netflix generally does not limit exactly how many movies an individual views but instead, exactly how many movies they could have out at any given time flixtors. Therefore rentals are more or less unlimited with lots of the plans.
The 2nd most often cited reason behind not utilizing online movie rental services was that the individual rented movies on the spur of the minute and didn’t plan ahead. Certainly renting movies online and receiving them through the mail would not allow someone to decide at 6:00 p.m. that they wish 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 may seem sufficient in many instances.
The 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 via a streaming service that is available these days for some movies. The service should 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 present mail delivery system to a download type of service will take time, it is clear that immediacy will only continue to improve. It would seem that other online movie rental services would follow suit in coming years to be able to compete.
Consumers who’ve not been initiated into the web movie rental world also may 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 could seem to remove the issue of consumers arriving at the store only to locate that there is nothing there they actually want to see.
* There are no fees related 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 usually risk free as you will find free trials available and no cancellation fees.
* There are never any late fees nor restrictions on how long a video could be kept.
Misconceptions about online movie rental services appear to limit the participation of an important quantity of consumers. Online movie rental probably offers the services that many consumers want, even when they don’t know it yet.