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Amazon to Enter the Online DVD Rental Business

Posted by samzenpus on from the rental-race dept.

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?"

4 of 243 comments (clear)

  1. Advantage: Amazon by jmp_nyc · · Score: 5, Interesting
    Amazon has the clear advantage here. They already operate distribution centers in several locations around the US, have experience in inventory management and quick shipping, and can even rent videos at a slight loss for a while, using it to drive business to the rest of their operations.

    Of course, if all that fails, they can follow their usual MO and file a patent for the idea of unlimited online rentals for a monthly fee and drive Netflix out of business that way.
    -JMP

  2. Instant gratification by phpm0nkey · · Score: 5, Insightful

    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.

    --
    domain combinatorics
  3. News? by Florian+Weimer · · Score: 5, Informative

    They have already entered the DVD rental market: Amazon.de Launches DVD Rental Service For Customers in Germany, Amazon.co.uk Launches New DVD Rental Service

  4. Better website? by aggressivepedestrian · · Score: 5, Interesting

    I think one thing Amazon will have going for them is their website. Assuming they leverage a lot of their existing code, their initial US launch should be miles ahead of Netflix. While Amazon is constantly adding new features that help me find interesting things in the long tail, I don't think Netflix has made an improvement to their website in the two years I've been a customer.

    Don't get me wrong, I like Netflix, but the recommendations they make for me are almost always off target. On the other hand, Amazon is always presenting me with interesting recommendations on music and books.

    That's just one feature that I expect they will execute better than Netflix. They also have a slew of fetaures Netflix doesn't offer. Some of the ones I've found useful include "the page you made", "customers who bought this also bought this", "customers who viewed this also viewed this".

    Then's there's "Artist Essentials". Just getting into jazz but overwhelmed by the many choices for say, Ella Fitzgerald? Then check out her "Artist Essentials". It's just a static list, so how hard could it be to implement? But if you want an opinion from Netflix about the best movies of, say, Jim Jarmusch, well, you're just SOL.

    All in all, I'd say Amazon's entry into this market will introduce some good competition, and we're all going to benefit.