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 concerning 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 yet tried the service.
Participants in the survey were asked numerous questions, including how often they watch movies at home, whether or not they rent movies online, and if not, why. Nearly 28% of those responding indicated that they rent movies online. Of the rest, probably the most frequently cited reason behind not using an online movie rental service was concern which centered round the perception that online movie rental will be higher priced than the neighborhood video store. When considering several scenarios it becomes evident which method tends to be more affordable.
For individuals who indicated that they watch only 1 to 3 movies monthly the savings from renting online are small flixtors. Renting 2 movies monthly at the neighborhood video store would average around $7.40 whereas renting from Netflix for example, when they chose the master plan that’s a control of 2 movies monthly, would run $5.99. After getting a video at the neighborhood store an individual would have overnight or simply one week to come back the movie but an online rental allows them to keep the movie for an unlimited amount of time.
For anyone individuals who responded that they view 1-3 movies each week, the savings will be more significant. As an example, renting 8 movies monthly would run around $29.55 at the neighborhood store and as low as $14.99 online when they chose 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 that they view 4 movies each week (averaged out to 16 per month) the average cost at the neighborhood store will be $59.04 while online rental will be $23.99 allowing an individual “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 instead, exactly how many movies they can have out at any given time. Therefore rentals are pretty much unlimited with most of the plans.
The second most frequently cited reason behind not utilizing online movie rental services was that the patient rented movies on the spur of as soon as 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 wish 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 1 business day which may seem sufficient in most instances.
The future of DVD rental may be changing however as Netflix announced in early 2007 that customers would now have the choice of watching movies instantly via a streaming service that is available these days for a few movies. The service should really be quicker than most download services as streaming allows viewing of the movie because 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 can take time, it’s clear that immediacy is only going to continue steadily 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 online movie rental world also may 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 may seem to remove the issue of consumers coming to the store only to locate that there’s nothing there that they actually want to see.
* There are no fees linked to the delivery and return of DVD’s; and there’s no visiting and from the store as movies are delivered to their door or to their home via streaming.
* Movie selection is assisted by user reviews through online programs like Netflix.
* Trials of online movie rental services are often risk free as there are free trials available and no cancellation fees.
* There are never any late fees nor restrictions on how long a film may be kept.
Misconceptions about online movie rental services seem to limit the participation of a significant quantity of consumers. Online movie rental probably offers the services that a lot of consumers want, even when they do not know it yet.