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DVD Rental Industry Commentary
 

The DVD rental by mail industry was pioneered by the US company Netflix, launched in 1999 to take advantage of the power of the internet and easy delivery of DVDs by post, while eliminating hated late fees. Online rentals have also been around since 2001, pioneered by DVDRentals (now Screenclick) in Ireland, but even now, not many people have heard of them. Customers love not having to go down to the video store and the absence of late fees (which generate nearly a quarter of income at video stores like Xtra-Vision and Chartbusters). Instead of paying an average of €5 at a video store, by comparison, a 3-disc unlimited subscription, assuming you only watch a modest 3 discs a week, comes out at under half price, averaging €2.21 per disc with Screenclick.

The situation is similar to the late-1990s mobile phone craze, before the market reached saturation. Prices are relatively low to entice new customers, and all three services offer a free trial. In fact, Australia-based VNH systems, which helps set up DVD-rental companies, noted there was interest in setting up more DVD-rental by post companies as of 2006. To get a sense of scale, in early 2007 Screenclick received 230,000 visits per month from their 52,000+ members. In 2005, startup Busy Bee DVD also attracted some attention and is growing well, while others like Rentastic never even got started. However, the summer 2006 launch of Moviestar has really shaken up the market, swiftly garnering 16,000 members and wowing critics with a very well-designed site and the latest in technological innovations. This vibrant competition can only be good for the market, and we eagerly await to see if other startups enter as well in the coming months.

The Irish DVD rental market will probably continue rapid growth for at least several more years as it goes mainstream, driving many traditional video shops out of business in the process. For comparison, Screen Digest research indicates that by 2009, rental-by-post will account for one-third of rental activity in Europe (nearly two-third in the UK, where it is very-well established). The exodus to rental-by-post will obviously hurt video shops, many of which will probably close. So enjoy the free trials and cheap subscription fees while you can.

We at Ireland-DVD-Rental-Guide.com will continue to guide the way with our reviews and rankings, helping you pick the best.

 

 
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