Blockbuster recently reported a $57 (£32) million loss in the second quater of 2005. They made $48.6 million in profits over the same time period in 2004. I have to say that it’s been obvious to me that the video rental market wouldn’t last long and the traditional bricks and mortar outfits are the most at risk. With the rise of video-on-demand, pay-TV, increasing broadband speeds and talk of the studios allowing people to rent or buy direct from their online services, rental store’s days were numbered. I doubt the studios are that bothered, they can make more money from other markets and those people who rented films aren’t really disappearing, they’re just changing how they’re supplied with the film. Instead of nipping down the video shop, elbowing your way through the crowds on a Friday night and then finding all the good stuff is out, you sit back, pick up the remote and push a button. Then phone for pizza.
I don’t think video rental stores are doing themselves any favours either. The price in my local store for a 2-night rental is £3.75. You can buy a film on DVD to watch as often as you like for £7.99 these days, and with DVDs often released for retail and rental on the same day rentals have lost their exclusivity. Blockbuster and the others have had to expand their offerings and confectionary seems to be taking an ever growing percentage of floor space in my local.
Maybe they should try something like a members club where you pay a monthly fee and get to rent films for £1, or however many a month for a flat fee, or try 7-night rentals (something that was popular in the States where my parents lived), how about teaming up with places where people visit often (such as supermarkets). Maybe offer personal DVD players and a choice of films on ferries and trains?
No matter what they do I think the days of the traditional rental store are numbered.
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