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Topic: Research/Metrics

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This question has been answered, and points have been awarded.

Online Dvd Movie Rentals

Posted by Anonymous on 50 Points
I'm currently researching the online DVD movie rental market because I want to open my own online store. With so many choices out there, I would like to know the best way to go about compiling statistics regarding movie goers expenses vs. online DVD movie rental.

  • Posted by Sharon on Accepted
    If I may, I'd like to direct your efforts in another way. Perhaps you should instead analyze the business plan and practices of NetFlix, clearly the industry leader in online movie rentals. This firm will be your primary competition and you will need to come up with a weakness in their plan that you can exploit to differentiate your new business from theirs. Online rental firms as an industry compete with rental companies that have physical locations (like Blockbuster). I think you could also look into the reasons people continue to go to the Blockbusters of the world despite the clear financial incentive and convenience of online rentals. My guess is they like the instant gratification as opposed to waiting for the mail. Although there is probably much of the rental business that will still convert to online ordering, I do think there is a niche for online ordering with delivery that night or something. It would have to be a local business for you though. But it's a niche no one has exploited yet as far as I know.

    By the way, I think it's been established that people who go to see movies go for the experience and the first look as it were. I think I read somewhere that most moviegoers also are frequent movie renters. I think you can safely assume that movie theatres are not your competition.

    Good luck.

    Sharon

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