Tuesday, April 6, 2010

Written by Ben Wood

Hollywood video is closing in Rexburg. They are currently having a closing sale in which their used DVDs are being sold for $3.99. They are not the first video rental store to come upon hard times. Many stores of this kind are finding it hard to stay open, and it’s not just the general economic trouble that is cutting into their revenues. People just aren’t renting movies like they used to… and by that I don’t just mean the number of people renting movies is down, I mean that the way people rent is not the same as it was just a few short years ago.

One major innovation that has changed the world is the internet. Not only does the internet allow people to download movies from their computer in the comfort of their own home, it also allows services like Netflix to operate based on input received from the users online. One can place a request for a movie online and find it in their mailbox the next day, avoiding the trip to the rental store, yet allowing for a tactile symbol of ownership that holding a physical object can be. Some claim that a “digital” copy of a movie is not the same as owning a “physical” copy, and that the security of having a DVD is worth the price paid. Netflix is capitalizing on this notion by offering the technology-based solution with the sense of security at the same time. No trip, but still having something to hold.

The other killer of your local rental store is “the RedBox.” The equivalent of an Automated Teller Machine, the RedBox is a vending machine with a credit card reader that dispenses DVDs. The card is charged $1.00 per 24 hours that the movie is out of the machine, and once returned by the renter, the DVD is then available for the next user to rent. Such a simple process has very little overhead cost, and allows the owner to place their “store” anywhere. McDonalds was one of the first locations to sport the new RedBox renting machine. However, they can now be found at almost every local grocery store, drug store, or strip mall.

I have two concerns about the RedBox that seem to reduce the convenience of this new renting method, the long line and the small selection. Although there are at least 3 by my count here in Rexburg, I always see a line at the RedBox. Waiting in line for the guy at the front to finally choose a movie and get out of the way is not how I want to spend a Friday night. The choice should seem easy compared to the number of movies available in a traditional rental store. The RedBox can’t hold as many DVDs as a store can, so they are forced to only offer the newest and most popular movies. This is where Netflix wins hands down. They offer movie titles by the millions. Something the RedBox or rental store could never dream of doing. Plus the never-leave-home aspect makes Netflix the current champion of the movie rental industry.

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which of these movies have you seen?