With the current state of the economy, there is no question that consumer spending, across the board, is down. People are facing high debt, combined with income loss, as a result of the recession.
Why are DVD Rentals booming?
Specifically, income from DVD sales was down 9% in the United States in 2008; however, online DVD rentals still seem to be very hot. Netflix and Blockbuster dominate the online DVD rental industry, offering a variety of monthly plans that fit a wide range of budgets. The ease and convenience of selecting Netflix and Blockbuster DVDs online and receiving them in the mail continues to appeal to consumers. Even consumers who are pinching pennies are more likely to stay home with a movie to save money. People still need to blow off some steam and feel they are being entertained; however, the decline of the economy has generated more interest in less costly forms of entertainment. DVD rental revenue reached a whopping $3.97 billion dollars in 2008—we’re pretty confident that is enough to describe the industry as booming these days!
Why is Netflix doing so well?
Netflix shares have grown over 5% over the past year, reaching a total of 8.7 million subscribers. Netflix CEO Reed Hastings accredits the comfort people get from watching movies amidst a time and crisis that Americans are currently facing. Watching movies in the comfort of your own home has become a cost-efficient way to sit back, relax, and take a sort of mental break from the stress many Americans are feeling.
DVD Rentals offer Improved Customer Experience
Over the last year, companies like Netflix and Blockbuster have made efforts to build upon their customer loyalty even more by launching products that will improve the customer experience. Netflix, for example, offers subscribers the ability to stream their favorite movies directly onto their computer, enabling an “Instant Watching” feature that caters to our technology-driven generation. If subscribers prefer to receive their selected DVDs in the mail, they also have the option of renting higher quality DVDS, known as Blu-Ray discs. Developed by the world’s leading consumer electronics companies—including Apple, Dell, Hitachi, HP, JVC, LG, Mitsubishi, Panasonic, Pioneer, Philips, Samsung, Sharp, Sony, TDK and Thomson—this format offers extra capacity and an unprecedented high definition viewing experience. To put it simply, the DVDs people are ordering online and watching in the comfort of their living rooms are more than just affordable—they feature the most advanced digital viewing technology on the market!
DVD Rental Comparison
When comparing the “old school” way of renting DVDs—going into an actual video store and selecting a movie—with the booming industry that offers online movie rentals, one can immediately see the differences when it comes to appeal. People do everything online these days, so why not rent your movies online too? There are no long lines to wait in and no late fees; eager subscribers also have the option to stream movies immediately to their computer. The ease with which consumers can be entertained, combined with the multiple online plans to choose from, meet the budget and convenience needs weary Americans are looking for during these uncertain times. We encourage you to pick the online DVD Rental package that is right for you—then sit back, relax, and pop some popcorn!
