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Amazon Talking with Netflix And Blockbuster
Mike from HackingNetflix.com writes "Reuters is reporting that 'Amazon.com has approached online DVD rental service companies, including Blockbuster and Netflix, to explore a partnership rather than launching its own U.S. DVD rental service.'" More from the article: "Despite its online might, shopping giant Amazon faces a potentially expensive battle to crack the competitive U.S. online rental market. The company started its own DVD rental service in Britain in December. Rumors that Amazon would enter the U.S. online DVD rental market sparked a price war late last year between Blockbuster and Netflix, which pioneered online DVD rental and now controls about 75 percent of the market." So there may be a happy ending to this tale for Netflix after all.
Amazon has been one of the innovative online business for a long time. How about streaming rental service? Strike a deal with Tivo or somebody else. Why don't they still embrace the future?
what is the viability of startubg a DVD mail service right now? Are they trying to build a client base for the inevitble switch to streaming, which granted is still a few years off, or just trying to get in and steal a bit of market share while they can. hmm. it reminds me of back in 2001, when i worked for an internet kiosk company. we all knew that wireless tech was hitting the market and that it basically spelled doom for the company, but the higher ups hoped to make as much as they could and (hopefully) sell the company off to a major player before wireless came to fruition...the company was gone within 2 years.
I really don't think the market could hold another major competitor, so partnering with Blockbuster or Netflix would be a smart move... Although I heard rumors that Hollywood Video might also be looking at starting an online movie rental business. That might be an ideal partner for Amazon, as both are fresh in the business.
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I reguarly get a full disc change in 2 days - 1 day for it to get from me to them and one day for the new set to get back to me. This is of course UK only. I could (and have when taking time off from work) managed 13 or more disc changes in a month, making for 52 DVDs a month at my current 4 disc tariff.
The article seems to favor blockbustor but I don't think they are ever worth using. They have had way too many lawsuits for bullcrap late fees over the last 10 years! I know its true because its happened to my family and we stopped using them a long time ago. Personally its worth it to pay more whether that be netflix or amazon or the two of them combined.
Amazon should go it alone. I know Amazon UK rents DVD's online but I don't know if it's partnered with anyone. Partnering with Blockbuster would be a bad idea. I currently subscribe to it. I thought I'd give them a try first because if they sucked I could always switch to Netflix. Which is what I'll probably do here soon.
Over half the movies in my queue are short wait. I have about 40 in it. Yes I can only have 3 out at a time, but there are some movies I've been waiting months for. And Netflix does have a better selection. If Amazon partners with Blockbuster then my movies will all go to long wait.
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Netflix would fit quite well with the range of products that Amazon has. Amazon has good relations with its customers already, now it could tie them up with a subscription service. If they do it well, the customer gets referrals to movies they might never have thought of and Amazon might use information on viewing habits to suggest books. If Amazon/Netflix are smart, they will also start video on demand.
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I have no doubt that Blockbuster online will turn to absolute shit sometime soon. They've never been concerned about the customer. I figure when that time comes I'll go ahead and give GreenCine a try. Hopefully by that point they'll have more distribution centers (I live on the east coast). Or maybe I'll give Netflix another chance, or just dump the rental thing entirely for six months or so...
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Netflix seem to be a more likely partner than Blockbuster from Amazon's viewpoint. They already have a well established customer base and architecture. On the other hand Blockbuster may have a greater interest in tapping into Amazon's online presence and architecture and be willing to offer more for the opportunity. My guess is that Amazon will still end up in a deal with Netflix because it will avoid the risk of another Toyrus situation.
If Amazon wants to compete like mad in the dvd mail-order rental, start with pr0n. Get a huge library, make some partnerships with adult title companies(for bulk discounts, exclusive deals, whatever), and add that to the regular movie library. Also, don't charge exorbant prices. Treat it like a regular movie, but maybe add a dollar to the rental cost, just cuz you can.
Well-known retailer + pr0n + no shame of walking out of the adult section with it = 3. profit!
Netflix doesn't have a marketing problem. It has an operational issue. Although they say you can rent an unlimited amount, they slow the snail mail process down so you'll get less DVDs in the mail.
Operationally they are losing money on postage. The less they send you, the more they make. How in the world will Amazon fix that. They bring nothing to the table.
Problem is, Amazon offer the worst deal of every mail order DVD service currently in the UK.
9.99 a month for a monthly limit of 6 DVDs.
Both Blockbuster UK , LoveFilm and 365DVD, all offer a far superior all you can eat package for 14, which at 3 a week, nets you at least 12 films.
I don't think Amazon's pricing model will work in the UK, there are already too many competitors offering better deals.
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