Consumers have a number of options when it comes to viewing movies at home. Two of the most used are renting movies at the local video store and renting movies via an online service. An informal survey was recently conducted on a home electronics/entertainment site about the movie viewing habits of website visitors. The results pointed to a number of the misconceptions that still 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 or even, why. Nearly 28% of these responding indicated which 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 across the perception that online movie rental will be higher priced than the local video store. When taking a look at a few scenarios it becomes evident which method is often more affordable.
For folks who indicated which they watch only 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’s a limit of 2 movies per month, would run $5.99. After finding a video at the local store the consumer might have overnight or maybe 1 week to return the movie but an online rental would allow them to help keep the movie for an unlimited period of time.
For those folks who responded which they view 1-3 movies per week, the savings will be more significant. For instance myflixers, renting 8 movies per month would run around $29.55 at the local store and only $14.99 online if they chose 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 which they view 4 movies per week (averaged out to 16 per month) the common cost at the local store will be $59.04 while online rental will be $23.99 allowing the consumer “4 out at a time “.Renting via a service like Netflix generally does not limit just how many movies an individual views but instead, just how many movies they could have out at any given time. Therefore rentals are more or less unlimited with most of the plans.
The second most often cited reason behind not utilizing online movie rental services was that the average person rented movies on the spur of the moment and didn’t plan ahead. Certainly renting movies online and receiving them through the mail would not allow anyone to decide at 6:00 p.m. that they would like to see The Queen and receive it so that they may 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 many instances.
The continuing future of DVD rental might 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 available nowadays for some movies. The service should 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 a complete transition from the current mail delivery system to a download kind of service will take 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 to be able to compete.
Consumers who’ve not been initiated into the web movie rental world also might 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 might seem to get rid of the situation of consumers arriving at the store only to locate that there surely is nothing there which 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 with their door or with their home via streaming.
* Movie selection is assisted by user reviews through online programs like Netflix.
* Trials of online movie rental services are usually risk free as there are 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 an important amount of consumers. Online movie rental probably provides the services that most consumers want, even when they do not know it yet.