DVD Rental a thing of the past??

kat9182

Hi all,

A couple of friends and I are thinking of buying into a frachise that does 24/7 self service DVD and game rentals. Im sure you've seen them before, it would be like a normal video rental store but just with a load of screens on the walls that dispense your selected film, and you can pay by cc/cash and on a weekly or monthly basis... Its also alot cheaper than the other rental outlets (less than half the price)

Our only concern is that with all the digital TV and Box office, piracy etc these days, is the video rental market a dieing trade? Do many of you still rent your DVD's? I know I just buy mine or order box office, but the company that owns the franchise was showing us some statistics that would say that I am in the minority?

Any opinions much appreciated!

whiskeyman

So, you still actually have a B&M location, but have "DVD vending machines" in them?
Thats a waste of resources tbh.
You either do the current online rentals trend with one central location, or do the vending machine route but go into an agreement with a B&M business already in existance to hold your machine... say something like a coffee shop, or petrol station.

The online video rental market is booming at the moment - http://money.cnn.com/2005/11/15/technology/personaltech/dvdonline.reut/
but I'd be very dubious about a fixed location rental spot at the moment.

Of course the franchise owners are trying their best to persuade you with interesting stats.... but analyse them best you can with a rational mind.
I wouldn't personally go into a business that I'm doubtful of.

Best of luck

REDZ

They would say that!
I think DVD rentals are in decline, and if you look at how xtravision are diversifing into home entertainment sales, they do to.
Eventually i expect we will just download our movies and the shops will become starbucks.
save your money for a better bet, the thing about franchises is, that if its a really good idea, just rip it off and pay them nothing.

kat9182

Thanks you guys... I am a bit doubtful about it, and as you say Whiskeyman, letting the machines out to other premises would probably work better... Im just looking for good ideas to start a new business and looking at all areas... dont think this will be the one :v:

Merrion

The medium term (5-10 years) prospects for DVD rental are not very good. The rise in broadband usage and video on demand providers will probably start having an impact pretty soon.

shepthedog

I would be of the opinion that everything will be download on demand, that tech infastructure is there but I also believe it will take time.

There will always be ppl who wont adapt to new technology so I would take a long term view of things.

Good idea would be bit of mkt research yourself, go and observe your local Xtravision or blockbuster for a number of nites and see for youself

ronbyrne2005

definetly a declining industry,the bandwidth for download on demand is rapidly being rolled out and the hardware to do this in your living room will be dirt cheap,i would think about the vending machine for a 5 year max period so you would want to make a big return in those 5 yrs,better to invest in a business that will be around for decades to come.

Coolio

Know it's been a long time since this has been active but any poster have any views on the progress of movie download/video-on-demand versus physical dvd rental machines idea? IMO the posts here are from 2005 and nationwide roll-out of anything truly resembling high speed broadband is as far away as it was back then! It's fine in towns etc but in rural locations it's terrible.

Sabre0001

Caught out by revived thread

*Note to self - read dates...

subway

personally, i dont rent very many films, but when i do i would go to a shop and browse for one.
the idea of flicking through a jukebox in a spar doesnt hold interest for me.
you also have to think that it can only accomodate 1 person at a time where an xtravision means many people can browse at once widening your potential market.

vending machines would be an impulse thing as people making a conscious deciosn to rent are going to go to xtravision and browse.
a lot of customers in a spar wont be spending enough time to browse, they would be going in to get a loaf of bread / pack of smokes and going straight back out.
the other concern is that people potentially renting on impulse might not be sure when they will be back that way so might be put off by the inconveniece of having to bring it back.

Coolio

Understand where you're coming from, subway, but surely if you can rent a new release for €3.50 instead of €5.25 in xtravision there's an attraction there. Also surely it's more convenient to go to one location to shop and get your dvd?

Can see that it can come down to personal preference. Some are browsers, others like me would go in with a specific film or number of films in mind so the machine appeals to me!

Lastly, there are many locations without a dvd store so they can be catered for with a machine