Consumers have several options when it comes to viewing movies at home. Two of the most used are renting movies at the area video store and renting movies via an on line service. An informal 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 have not even tried the service.
Participants in the survey were asked several questions, including how often they watch movies in the home, whether or not they rent movies online, and if not, why. Nearly 28% of the responding indicated they rent movies online. Of the rest, the most frequently cited reason for not utilizing an online movie rental service was concern which centered around the perception that online movie rental would be more costly than the area video store. When looking at a couple of scenarios it becomes evident which method is often more affordable.
For individuals who indicated they watch only 1 to 3 movies monthly the savings from renting online are small. Renting 2 movies monthly at the area video store would average around $7.40 whereas renting from Netflix for instance, when they chose the plan that’s a limit of 2 movies monthly, myflixers would run $5.99. After finding a video at the area store an individual could have overnight or maybe seven days to return the movie but an on line rental allows them to help keep the movie for an unlimited amount of time.
For those individuals who responded they view 1-3 movies weekly, the savings would be more significant. As an example, renting 8 movies monthly would run around $29.55 at the area store and as little as $14.99 online when they find the “2 out at a time” plan or $17.99 for the “3 out at a time” plan. As viewing increases so does the likelihood of experiencing greater savings.
For many who responded they view 4 movies weekly (averaged out to 16 per month) the typical cost at the area store would be $59.04 while online rental would be $23.99 allowing an individual “4 out at a time “.Renting via a service like Netflix generally doesn’t limit exactly how many movies a person views but alternatively, exactly how many movies they could have out at any given time. Therefore rentals are pretty much unlimited with many of the plans.
The second most frequently cited reason for not utilizing online movie rental services was that the patient rented movies on the spur of the minute and didn’t 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 want 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 only 1 business day which would seem sufficient generally in most instances.
The ongoing future of DVD rental might be changing however as Netflix announced in early 2007 that customers would now have the choice of watching movies instantly using a streaming service that’s available these days for some movies. The service should really be quicker than most download services as streaming allows viewing of the movie since it is streamed as opposed to waiting until download is complete. Although the full transition from the existing mail delivery system to a download form of service will need time, it is clear that immediacy is only going to continue steadily to improve. It appears to be 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 online movie rental world also might be unaware of other benefits/features of such services.
* Greater selection- A normal 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 eradicate the problem of consumers coming to the store only to find that there surely is nothing there they genuinely wish to see.
* There are no fees related to the delivery and return of DVD’s; and there is no traveling 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 on what long a film could be kept.
Misconceptions about online movie rental services appear to limit the participation of a significant number of consumers. Online movie rental probably provides the services that a lot of consumers want, even when they don’t really know it yet.