The DVD rental market continues to heat up. The major players; Netflix, Blockbuster, and Wal-Mart continue to duke it out for control of the online DVD rental business. Hollywood video has decided against entering the online DVD rental market due to financial reasons. Blockbuster is currently in talks with Hollywood Video about a possible acquisition of the company.
Blockbuster was spun off from Viacom this year through a one-time special $5 dividend, which to many signified the end of the traditional movie rental business. However, it was just the beginning of the Blockbuster blood torn war. Blockbuster launched its online rental service in the Fall of 2004 with the hopes of playing catch up in the online rental market. It has since been a fierce competitor drawing blood with every swing. It has vowed to take control of the online DVD rental market and remain the king of the traditional rental market. Blockbuster continues to lower its online DVD rental price and change its in-store policies in favor of the consumer. All these moves continue to bloody Netflix as it has seen its stock fall from its $40 high to around $11. The Blockbuster moves due little damage to Wal-Mart’s stock, as this business is just a tiny fraction of Wal-Mart’s revenues.
The question remains. Which service is the best value for the consumer? Here is how the three services stack up:
Blockbuster:
Price per month: $14.99 guaranteed through January 2006.
Price includes the following:
Ø Unlimited online DVD rentals – 3 rentals out at a time
Ø Two free in-store movie or game rentals per month
Ø No return dates (online rentals)
Ø No late fees (online rentals)
Ø Free return shipping (online rentals)
Ø More than 25,000 DVD titles available
Netflix
Price per month: $17.99
Price includes the following:
Ø Unlimited online DVD rentals – 3 rentals out at a time
Ø Free return shipping
Ø 25,000 DVD titles available
Wal-Mart
Price per month: $15.54
Price includes the following:
Ø Unlimited online DVD rentals – 2 rentals out at a time
Ø 16,000 DVD titles available
All three services offer some form of a free trial.
Please the visit the following links below for more information.
CnnFn Article
Latest Blockbuster Move
Blockbuster Online Rental Service
Netlfix Online Rental Service
Wal-Mart Online Rental Service
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