Amazon to Enter the Online DVD Rental Business 243
ChrisF79 writes "Wired News is reporting that Amazon.com is hiring programmers to work with online dvd rentals. From the article: "Advertising for positions based at the company's Seattle headquarters, the listings seek engineers to help in 'building systems and algorithms that must move inventory between our fulfillment centers and our customers in a way that gives customers exactly what they want, when they want it.' The postings indicate they are specifically for an online DVD rental service." Netflix seems to have a stronghold on the market so despite numerous advantages for Amazon, especially economies of scale, can Amazon enter the market and surpass Netflix?"
Advantage: Amazon (Score:5, Interesting)
Of course, if all that fails, they can follow their usual MO and file a patent for the idea of unlimited online rentals for a monthly fee and drive Netflix out of business that way.
-JMP
Re:Advantage: Amazon (Score:2)
Amazon has the clear advantage here. They already operate distribution centers in several locations around the US, have experience in inventory management and quick shipping, and can even rent videos at a slight loss for a while, using it to drive business to the rest of their operations.
Well, it will be interresting to see how they actually think to manage all those rentals. If you see what they charge for shipping packages right now, and assume it cannot really get much lower, the actual delivery of a
Re:Advantage: Amazon (Score:2)
If they follow the Netflix model, the DVD will be shipped in an envelope such that the whole package weighs less than an ounce - disc only, no case. It's their product, so they can risk them getting broken at virtually no cost (distributors probably replace them for free). First-class, non-bulk postage using USPS for a square envelope 1oz is around 50c. You can imagi
Re:Advantage: Amazon (Score:2)
Wal*Mart started out being the cheapest, then forced everyone else to follow them into the low-priced space. Then Wal*Mart dropped the service, presumably because they weren't making any money. Will the other services keep the same prices?
Maybe Wal*Mart couldn't make money because the USPS can't rely on foreign labor. (Yes, I know, most carriers aren't too far from being foreign- but they still get paid American wages.)
But to the g
Re:Advantage: Amazon (Score:2)
I guess I don't understand this argument...do you never leave the house to go to work, buy groceries..etc.? There are tons of US mailboxes out there in the town...I always just drop my stuff in the drive b
Re:Advantage: Amazon (Score:3, Informative)
Netflix 2nd Quarter [com.com]
I'd say on-track for a $650mil year is pretty successful.
Re:Advantage: Amazon (Score:2)
Nope...just depends, some times I go through as many movies as I can get a month...then others..well, put it this way. A little over a year ago...I had the same 3 movies out for a year..just never got around to watching them. Remembered them finally....watched them..and then started going through them as fast as netflix woul
Re:Advantage: Amazon (Score:2)
I'm all for competition, but I think Amazon will have to have a special gimmick of some sort to enter into the US market with any success.
And for all Netflix users out there, my Queue Manager program is now officially free, and officially version 1. Now that it's out o
Re:Advantage: Amazon (Score:2)
Too bad it's for windows. How about a mac/linux port?
-- Gary F.
Re:Advantage: Amazon (Score:2)
Re:Advantage: Amazon (Score:3, Informative)
There's also this spiffy-looking Dashflix [apple.com] dashboard thingy, which is only a viewer not an editor, but still neat... and f
Re:Advantage: Amazon (Score:3, Informative)
Re:Advantage: Amazon (Score:5, Interesting)
A co-worker recently did a trial comparison of the two services. He found that Netflix sent, received, and processed faster. Also, he found the entire sign up process easier with Netflix (mostly due to an error Blockbuster's site experienced with his sign up, which could be a one time issue). Their website is better designed. Basically, they're just a better online service than Blockbuster has been.
Amazon has proven to be a good online service. My personal experience shows that there's rarely ever need to use anything but super-saver shipping because most things get to me just that quick. Their website works: I can find stuff, I can buy stuff.
If anyone can compete with Netflix it's them, hopefully this will either force Netflix to continue to improve or lower their prices. That means that I win. If nothing else, they probably won't raise prices or worsen service, so I at least won't lose.
The Zero-Cost solution (Score:5, Insightful)
Re:Advantage: Amazon (Score:2)
Re:Advantage: Amazon (Score:2)
However, even if Netflix waits a day to process the movies that's still a four day turn around. During his trial at Blockbuster's service he noticed no less than a five day turn
Re:Advantage: Amazon (Score:2, Informative)
Not anymore. Blockbuster is raising their fee [reuters.com] to $17.99 as of August 19. Unless Netflix is raising their rates and I haven't heard about it, they are now the same price.
Re:Advantage: Amazon (Score:3, Insightful)
A contender has a lot to accomplish to get to that level I think.
Re:Advantage: Amazon (Score:2)
I agree...I love Netflix. I do wonder, however, if Amazon would get a little 'leg ahead' if they offered Adult titles...something that Netflix, for some reason, does not do. Maybe have it on a separate, higher pric
Re:Advantage: Amazon (Score:2)
NetFlix used to do adult titles, but stopped when they got support from Best Buy. I presume it was a term of the arrangement.
That is why they will loose (Score:2)
That is true. And that's how Netflix started.
But then they realized that for timley delivery of movies, you really need hundreds of distribution centers, not several. Hundreds may be exaggerating a little bit, but Netflix definatley has more than several.
The ones who can get you the widest selection fastest wins. The only thing Amazon might offer in competition over Walmart (which did not fare well against Netflix) is perhaps a b
Re:That is why they will loose (Score:2)
In fact, ideally you need enough distribution centers to cover the entire country with one-day service. Netflix doesn't have that - you get to a certain point and you're spending a huge amount of money for a few people in rural areas - but they have about 90% coverage at this point.
Then you have to c
Re:That is why they will loose (Score:2)
Re: (Score:3, Insightful)
Re:Advantage: Amazon (Score:2)
Amazon may or may not have the ability to get things to you in a day at a reasonable cost. That's not to say that they can't develop this ability. However, it seems like they'd have to develop a close relat
Instant gratification (Score:5, Insightful)
I am fickle. With NetFlix, I too frequently found a DVD in my mailbox that I felt like watching 3 days ago. Being able to pick out a movie and be watching it 20 minutes later really makes a world of difference.
Perhaps NetFlix will go one better. With movie downloads just around the bend [slashdot.org], it appears that they're taking innovation and competition in their industry very seriously. Amazon may have the inventory and distribution architecture to easily catapult themselves into the market, but if they don't have anything more interesting than DVDs-by-mail on the horizon, they may quickly find themselves left behind.
Re:Instant gratification (Score:4, Informative)
Re:Instant gratification (Score:5, Insightful)
If Blockbuster could work out a deal w/ the movie industry to burn the DVDs onsite so they could have all the benefits of an unlimited DVD inventory and all the convenience of 20 minute turn around times, I think they'd really hurt NetFlix & Amazon's business.
Re:Instant gratification (Score:2)
Re:Instant gratification (Score:2)
They're based in San Francisco though so if you live a few states away it may not be worth the extra shipping time.
Re:Instant gratification (Score:3, Interesting)
Re:Instant gratification (Score:2)
We got a Blockbuster Online subscription and it's fantastic. It's cheaper than Netflix and has two "free" in-store rentals each month. So you get the delivery stuff but you can also get your instant gratification if you need something on short notice.
Other than their site needing a serious reworking (no middle clicking to open new tabs?!) it's an excellent service.
Re:Instant gratification (Score:3, Informative)
Not anymore. [reuters.com]
Re:Instant gratification (Score:3, Interesting)
Re:Instant gratification (Score:5, Informative)
Re:Instant gratification (Score:2)
Wow. This is the first time I've heard of a customer disincentive program.
So, do they use piano wire, or what?
No exaggeration (Score:2)
Re:Instant gratification (Score:2, Interesting)
With online retailers, I have found netflix to have much faster turn around times than blockbuster online. Netflix also seems to have many more copies of movies and a better selection. Just my observations.
Re:Instant gratification (Score:2)
Re:Instant gratification (Score:2)
The biggest problem with blockbuster stores is their incredible lack of selection, and the movies they DO have tend to be checked out, especially on weekends when most people want to watch movies...
Re:Instant gratification (Score:2)
I think the "Not having your TV Hooked up to the ineternet" horizion is closer than either of those.
Re:Instant gratification (Score:2)
No it doesn't. I'm a subscriber. It doesn't.
Amazon's Advantage (Score:2)
However, personally, I really never use Amazon for anything more than books. Perhaps it has caught on in other markets, but I really see Amazon as a book place. I think my first instinct would still be to go to Netflix if I wanted to rent movies.
Re:Amazon's Advantage (Score:4, Informative)
Why? In addition to books (used and new) I have bought multiple things there including two GPS units and a mobile phone.
The latest GPS unit (GPSMap 76CS) was on sale, no rebates necessary, and priced $50 less than its lower end unit (76C). Six months later, the price I got (with no mail-in-rebates) is still less than you can find 99% of the time.
The mobile phone (T-mobile Sidekick 1) came with instant and mail-in-rebates that totalled enough to make the phone $0 with on year of service.
Why would you only go to Amazon for books when there are so many bargains on there that I seem to only be able to find there?
I'm not an amazon.com rep, investor, or otherwise, just a happy customer.
Re:Amazon's Advantage (Score:2)
On the Netflix competition front, it is interesting that Netflix has not yet, AFAIK, used it's patent on the DVD delivery/rental service that it took out a long time back.
Culturally, Amazon will be a better fit, competitively, than Wal-mart and Blockbuster, because it h
Can't wait for the recommendations feature (Score:4, Funny)
ask not..... (Score:2)
Operation (Score:4, Insightful)
I am really confused as to whether everybody is still overcharging. Considering everyone has an endless queue list that seem to be sending things out of order again and again. There is still a real supply problem.
Re:Operation (Score:2)
Just cause thier stock value went up doesn't mean they're making profit.
Remember the days of sock puppets and on-line grocery shopping?
Re:Operation (Score:3, Interesting)
I should probably not give away a secret this good, especially on slashdot, but I've been renting newly released DVD movies from my local library for $1.50. [ca.gov] Same length of time from the video store (About 3 days) and significantly cheaper than any of the local area chain video stores. Documentari
Already in the UK (Score:2, Informative)
Re:Already in the UK (Score:2, Interesting)
There are no complaints.
fyi:
Turn arond time typically 3 days (in the postbox by 12pm -> email telling you they've got it & what you're getting next -> receipt).
Only one unreadable DVD out of ~ 20 so far. Using their online 'damage reported' method, they sent a replacement before I returned the bad one.
Re:Already in the UK (Score:2, Informative)
News? (Score:5, Informative)
Re:News? (Score:3, Interesting)
Re:News? (Score:3, Insightful)
Amazon already does this in the UK (Score:2, Redundant)
Netflix around since 1998 (Score:2)
Who cares, I'm boycotting amazon (Score:2)
Re:Who cares, I'm boycotting amazon (Score:2)
Re:Who cares, I'm boycotting amazon (Score:2)
Maybe you consider a move to a better neighborhood where they won't steal your DVD's out of your mail box? Or...install a mail slot that drops the mail INTO your house, where it is safe?
If you're losing movies to thieves...what else are you losing?
Combination with shipping (Score:5, Insightful)
Too Late? (Score:4, Insightful)
Unless Amazon can couple the download with the the DVD rental (both will be necessary), they will be too late to be of consequence. My guess is that Netflix, Intelliflix, and Blockbuster will all begin on demand downloads by the end of next year.
Re:Too Late? (Score:3, Insightful)
Let's think. Target age of an XBox is between teenager to twenty something geek male. Basically, a high percentage of the people that comment on posts like:
http://games.slashdot.org/article.pl?sid=05/08/03/ 148257&from=rss [slashdot.org]
These are the same people that are already more likely to be computer literat
Re:Too Late? (Score:2)
Yes, of course. The deployment of tens of thousands of Xbox360en are going to make the market that serves millions of DVD player owners disappear.
no point when many films are £5 on DVD (Score:2, Interesting)
Re:no point when many films are £5 on DVD (Score:2)
Meanwhile, on-demand is falling behind.. (Score:3, Interesting)
When I'm not blowing $18-21 at a time to rent a whole season of a tv show at the local video store(yes, I know I should go netflix), I give Comcast VOD a try.
So let's go watch Constantine.. Wait, it's not listed. Okay, let's go watch Hellboy..wait. No, wait, the only have bottom-of-the box office barrel movies available.
Comcast's offerings of VOD is incredibly pathetic for being such a mega-corp. You would think DVD distributors would lend them a few episodes of a TV show they just released for free viewing. Then,if you like the show so much you could buy it. Free advertising. Give 'em a taste.
Heck, let me pay a small fee to VOD the HBO/Showtime premium tv shows, without having to subscribe to said premiums.
So far, VOD to me is a dud.
Re:Meanwhile, on-demand is falling behind.. (Score:2)
You mean like Constantine [boxofficemojo.com] and Hellboy [boxofficemojo.com]?
Re:Meanwhile, on-demand is falling behind.. (Score:2)
Virtually everything is Pan And Scan, only a handful of programs are Widescreen, and the decision about what gets the P&S or Wide treatment is seemingly random. Small indie films which will probably be viewed by Widescreen devotees are P&S, while crap romantic comedies are presented in your choice of P&S or Wide. Any time older films are added to the pay-per-view part and put on sale for a reduced
Re:Meanwhile, on-demand is falling behind.. (Score:2)
And HBO On Demand is annoying also. They refuse to even state a release date of the DVD of the Third Season of The Wire. But they only show 5 episodes at a time on OD. And they're still stuc
Books anyone? (Score:2, Interesting)
reliability (Score:2, Interesting)
Also, books get damaged far quicker than dvd's. I dont think it is a real option for them.
Sticking With Netflix (Score:2)
I Look Forward To Amazon Doing This (Score:3, Interesting)
If Amazon does a good job here I would probably switch over because I have noticed that everytime I start returning a lot of movies back to Netflix there is a mysterious slow down in delivery of new movies on their part. They blame it on the Post Office but there distro facility is right down the road and checking with the Post Office there really is no delay. It looks to me like Netflix either doesn't process returned movies quick enough or delays them so you get less movies per month if you happen to be watching/returning them too fast. Anyone else have that issue?
if walmart couldnt make it (Score:2)
Just because there are already two players... (Score:2)
The real point here however is that just because Netflix and Blockbuster online exist doesn't mean Amazon can't come along and emerge as the winner. There were
uh... (Score:2)
Already out here in the UK (Score:2)
Amazon.co.uk already does DVD rentals, and I'm a subscriber.
Must be a Market Acceptance tester. Similar to how some movies are released in Australia first to see whether they will float or not.
Re:Already out here in the UK (Score:2)
I really like the Amazon service (Score:4, Interesting)
How inexpensive is enough? (Score:2)
As compared to what?
As a WalMart Rental ejectee, I find Netflix to be fair, honest, fast, and have a great selection.
I suggest that being so twitchy is nothing to be proud of, and those who don't consider it a fair deal ~$20/month, a large pizza, for three outstanding to say what a fair deal is? Is $5 too much? If so, it should, and effectively is, a free service, so just say
Market research and shooting your mouth off (Score:2)
Presumably as compared to other entertainment alternatives. It depends a lot on how many movies you want to watch per month. You need to rent more than one disk a week to make it comparable to dropping by the video store (depending on how close they are, how much you mind returning movies, etc.)
But if you instead spent $60 on a video game and then spent three months playing it, you break even. Or you can buy several books. Hell, going outside is free.
You're right that Slashdotters of
Better website? (Score:5, Interesting)
Don't get me wrong, I like Netflix, but the recommendations they make for me are almost always off target. On the other hand, Amazon is always presenting me with interesting recommendations on music and books.
That's just one feature that I expect they will execute better than Netflix. They also have a slew of fetaures Netflix doesn't offer. Some of the ones I've found useful include "the page you made", "customers who bought this also bought this", "customers who viewed this also viewed this".
Then's there's "Artist Essentials". Just getting into jazz but overwhelmed by the many choices for say, Ella Fitzgerald? Then check out her "Artist Essentials". It's just a static list, so how hard could it be to implement? But if you want an opinion from Netflix about the best movies of, say, Jim Jarmusch, well, you're just SOL.
All in all, I'd say Amazon's entry into this market will introduce some good competition, and we're all going to benefit.
DVD Rental Will Soon be Obsolete (Score:3, Interesting)
Meanwhile, the cable companies continue to deploy video on demand. And it looks like TiVo will soon offer content programming downloads via the web [pvrblog.com]. Why would I want to rent DVDs?
No way in hell. (Score:2)
Hopefully they'll bring it to Canada (Score:2)
Canadians like movies too!
A reason Amazon may not succeed (Score:2)
I'll admit they've improved a lot recently (their new book pages are great), but I think they've got too much historical cruft in the mix to be truly committed to good, simple interface design.
Rocket Fueled Video Addiction. . ! (Score:4, Insightful)
Okay.
To be fair, the Netflix model sounds like a pretty good deal for people whose lives happen to circulate around watching lots and lots of movies. I've been there, and it can be a lot of fun when you're in that head-space.
But for me, it sounds like WAY too much trouble. --Like working for a company which gives you a pager and has you on-call 24/7. Knowing that I MUST watch 3 movies at some point during the month seems very stressful to me. I'd rather be able to get a movie when I feel like it and not feel that it is yet another item on my To Do list.
I can happily go for a couple of months without ever watching a DVD, and then I'll blow several nights in a row consuming something which catches my interest, (like the ill-fated Bruce Campbell TV Western series, "Brisco County Jr." --Which was unbelievably cool, but is only available from my friend who downloaded pirate copies from the web and burned them to disk for me because the series was never officially released.). --And then I'll happily watch nothing for another three months.
Perhaps Netflix could offer non-member limited rental packages with no deadlines on some of those funky single-use disks. --Subscriptions bother me. I don't like feeling 'obligated' to do anything, particularly with regard to my free time activities. Though, it seems to me that the rent-a-DVD-by-mail business model depends rather heavily on the various forms of psychological momentum subscriptions create, so I somehow doubt short term purchases will come about.
-FL
Re:Rocket Fueled Video Addiction. . ! (Score:2)
+++
Cache In, Trash Out!
Amazon owns IMDB too. (Score:5, Interesting)
If they tie it in with the IMDB, that would be pretty handy. Search for "Virginia Madsen" and you see a list of all her movies, with boxes next to the ones available for rental. Tick the ones you want and they get added to your queue.
This is also a plus since you could search with IMDB for any movie, not just the ones they stock. Want a movie that isn't out on DVD yet? Add it to a wish list.
Amazon also has the setup with used DVDs ( and books ) to ofer deals if you want to buy the movies instead of, or after, renting them. I'd expect them to let you know how long your wait will be for a rental while offering a shorted length if you want to buy one now.
Amazon also didn't pump up the IPO by paying spammers like Netflix did. Netflix will always be tainted by that.
I can think of one advantage Amazon might have (Score:2)
Re:I can think of one advantage Amazon might have (Score:2)
+++
My last.fm page [www.last.fm]
book rental (Score:3, Interesting)
What Amazon Needs: Customer Service (Score:3, Insightful)
Amazon has the distribution, but also the ability to cross-sell a lot more than Netflix. It's probably a lot easier for them to sell you the movie if you rent it and like it. They have better promotional opportunities, like including free rental coupons if you buy DVDs.
The one thing Amazon doesn't have going for it is customer service. Have you ever had a problem with your order? One time someone sent me a gift from my wish list, they could not select the address it was shipped to, and it got lost. It was a complete headache trying to resolve the issue and contact their customer support. Netflix, on the other hand, has amazed me with how good their service is. One time I sent my own DVD back instead of the rental, so I emailed them, and they managed to find it and mail it back to me a couple of weeks later. I also had a real, live, human who answered the email. Unless Amazon shows improvement I'll be sticking with Netflix.
Re:Internet users are very versatile (Score:2, Insightful)
Re:unlimited online rentals !!!!??? (Score:2)
Don't be daft. "Unlimited" as they use it clearly means that the terms of DVD rental have no hard number limiting your rentals, but rather the number of movies you get is limited o
No. Not haiku, senryu (Score:4, Funny)
Consider NoMoreNicksLeft,
Of humor, he was bereft,
He tried a haiku
And failed, as will you
So go back to your job of dick theft
Now in the case of Amazon.com
and whether their product will bomb.
It may work, you see
For you and for me,
But will it appeal to your Mom?
Re:It needs to have more selection (Score:2)
Re:It needs to have more selection (Score:2)