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We run Ireland-DVD-Rental-Guide.com as an independent, unbiased review of the Irish DVD and game rental-by-post industry, which we hope allows you the customer to make informed choices. We're going strong in 2009 after our blog relaunch and hope to maintain the high standards our readers have become accustomed to.
 

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Bright Future for DVD Rental by Post

Various tech analysts have written that US giant Netflix, whose shares have slid recently given competition from DVD kiosks and the threat of digital movie streaming, remains a strong company with a bright future, and these lessons apply just as well for Irish DVD rental. As described in this Barrons piece, analysts note the lifespan of the DVD rental market will be longer than many believe. The rental-by-mail sector will be the biggest beneficiary of the drawdown in bricks and mortar stores which has been going on for several years.

One survey found that 20% of all current Amercian non-subscribers to a DVD rental service say they plan to subscribe in the next five years. Assuming Irish are similarly inclined, that's a few hundred thousand new customers likely in the coming years.

April 2009 Ireland DVD Rental Guide Update

Nothing new to pass on this month, not after the major updates to content and design of March.

Screenclick Gobbles Up Moviestar

Alas, Moviestar is no more, it has been gobbled up by Screenclick, which now is the only major online DVD rental provider in Ireland. Existing customers will stay on their old tariffs and continue to send discs back to the same address for now, but Screenclick as an independent entity has ceased to exist.

Moviestar's disappearance follows that of the third Irish DVD rental company, Busy Bee, which went out of business last summer.

GameSenders remains the only game rental service.

US Netflix Mulls 6 Mailing Days Per Week

US DVD rental giant Netflix is considering shipping out its DVDs six days a week instead of the normal five.

Expanding its hours by 20% would presumably raise shipping costs, but Netflix is flush with profits, and the move would win kudos from customers, improving already strong brand loyalty.

Unfortunately, there is no Irish DVD rental service we're aware of which ships DVDs out on Saturdays, and with the recent Screenclick acquisition of sole competition Moviestar, there's no pressure to adopt such a system.

America's Blockbuster Notes Rental Tariffs Key to Profits

As noted in Video Business, Blockbuster's US division will focusing on boosting its rental profits vice pushing its new digital delivery service. It plans to improve earning by renegotiating better terms from the Hollywood studios.

Blockbuster Chief Financial Officer Thomas Casey noted that digital download spending was still "nominal" and "wouldn't have a material effect on earning until at least 2011."

This tracks with our thinking for Ireland, that online distribution is becoming a greater player, but will lag online DVD rental for several years, and in that time most DVD rental stores will likely close, though DVD rental kiosks may fill some of that void in high foot traffic areas.

DVD Rental Growth Continues Despite Recession

US online DVD rental leader Netflix is poised to see a 30% profit rise in the fourth quarter (with a 20% share price increase in December so far), despite the global economic downturn.

We believe there are broadly similar trends at work in Ireland, but haven't seen solid data. UK market leader Lovefilm also estimates its user base will grow 70% this year, fueled by the credit crunch and people staying home more, but this sounds a bit optimistic to us. In Ireland, we believe market leader Screenclick, and sole game rental source Gamesenders will enjoy similar good business.

Customers are simply looking for cheaper means of entertainment given the poor economic climate, and it's hard to beat online DVD and game rental, especially when compared to the cinema, theatre, or even a bricks and mortar video shop. Amusingly, the UK's Times Online noted that Lovefilm reported a 40% jump in demand for comedy DVDs, as people seek more cheerful escapism from the headlines.

Most Popular Posts

Gamsenders' 30-day Free Trial Special Offer [2]
US Netflix Mulls 6 Mailing Days Per Week [2]
DVD Rental Growth Continues Despite Recession [1]
Living Well on the Cheap [1]
February 2009 Ireland DVD Rental Guide Update [1]

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