Amazon To Rent DVDs

from the a-bit-more-competitive dept

Along with Netflix's earnings announcements today, they also revealed that Amazon is about to enter the DVD rental market, requiring them to drop their own prices. First off, it's pretty interesting to see a company revealing a potential product launch from an unexpected competitor. You don't see that every day. Still, it says something about the nature of competitive information these days. Furthermore, despite all the hype about Wal-Mart and Blockbuster getting into the DVD rental business, it's Amazon's pending entrance that clearly has NetFlix worried. That's because Amazon is much more able to compete to NetFlix's strengths: offering movies that fall under the long tail, and coming up with good recommendations for other such movies to rent. Neither Blockbuster nor Wal-Mart were likely to compete all that strongly on either front, but Amazon clearly has experience in both. Amazon also has a pretty impressive logistics team, though, it will have to be adjusted for rental offerings, rather than simply selling goods.

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  1. identicon
    Anonymous Coward, 15 Oct 2004 @ 4:03am

    Re: They're making this too easy

    Your "paraphrase" (Tony) of the Greenberg article is neither what blockbuster nor Greenberg said ... read it again and consider changing your blog to be factually accurate.

    When a company has a 95+% market share, it is not surprising when a brand new competitor has more "net subscriber additions." Blockbuster is misleading you with statistics by using "net additions."

    If Time magazine has a constant number of subscribers from quarter to quarter, and your little sister makes a new magazine that she gives to your mother, then your little sister has "more net subscriber additions" than Time. That doesn't mean that Time is losing its dominance to your little sister!

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