Amazon to Enter the Online DVD Rental Business

ChrisF79 writes "Wired News is reporting that Amazon.com is hiring programmers to work with online dvd rentals. From the article: "Advertising for positions based at the company's Seattle headquarters, the listings seek engineers to help in 'building systems and algorithms that must move inventory between our fulfillment centers and our customers in a way that gives customers exactly what they want, when they want it.' The postings indicate they are specifically for an online DVD rental service." Netflix seems to have a stronghold on the market so despite numerous advantages for Amazon, especially economies of scale, can Amazon enter the market and surpass Netflix?"

Comments

Instant gratification

[phpm0nkey]

I was a NetFlix subscriber for about two years, because they were the best of what was around. Recently, I switched to Blockbuster's in-store unlimited rentals, because it could give me something that NetFlix couldn't: instant gratification.

I am fickle. With NetFlix, I too frequently found a DVD in my mailbox that I felt like watching 3 days ago. Being able to pick out a movie and be watching it 20 minutes later really makes a world of difference.

Perhaps NetFlix will go one better. With movie downloads just around the bend, it appears that they're taking innovation and competition in their industry very seriously. Amazon may have the inventory and distribution architecture to easily catapult themselves into the market, but if they don't have anything more interesting than DVDs-by-mail on the horizon, they may quickly find themselves left behind.

Re:Instant gratification

[Ingolfke]

I was a Blockbuster subscriber... but after a year (and the dreck that's been coming out of Hollywood) I ran out of movies to watch. I wish they'd stock more TV shows (new and old).

If Blockbuster could work out a deal w/ the movie industry to burn the DVDs onsite so they could have all the benefits of an unlimited DVD inventory and all the convenience of 20 minute turn around times, I think they'd really hurt NetFlix & Amazon's business.

Combination with shipping

[Blindman]

The way that Amazon could really gain an advantage is if they could find a way to combine buying other items with DVD rental. If I could buy a book, and get it shipped free with my incoming DVD that would be something. Otherwise, I don't see how they can compete except on price or name regonition.

Too Late?

[canolecaptain]

With the deployment of the XBox 360 in mass quantities in '06, content producers will have the ability to content lock their movies. Microsoft will finally be able to promise that security to media execs, which will then loosen them up enough to allow the streaming to occur. When that desire is coupled with the increased availability of broadband, the on-demand downloading will finally go mainstream with Microsoft attempting to lead the way. Others in this market will be Apple with iVideo, potentially Sony on the PS3, and potentially juggernaut Google to the PC.
Unless Amazon can couple the download with the the DVD rental (both will be necessary), they will be too late to be of consequence. My guess is that Netflix, Intelliflix, and Blockbuster will all begin on demand downloads by the end of next year.

The Zero-Cost solution

[TopShelf]

My wife and I have recently hit on a great, free source of DVD's - the Library. For those who haven't been there in a while, check out your local branch and you might be surprised at what's available. We just picked up Donnie Darko, Kinsey, and Lost in Translation the other day. Since we take the kids there once a week to pick up kid's movies and books, we grab a couple for ourselves and when you're on a tight budget, free entertainment is a major bonus...