Online DVD rental
Encyclopedia
DVD-by-mail services allow a person to rent DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....

s, Blu-ray Disc
Blu-ray Disc
Blu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The plastic disc is 120 mm in diameter and 1.2 mm thick, the same size as DVDs and CDs. Blu-ray Discs contain 25 GB per layer, with dual layer discs being the norm for feature-length video discs...

s, video games and VCD
VCD
VCD is a three-letter abbreviation with multiple meanings, as described below:* VCD Athletic, semi-professional football team* Video CD* Voice command device* Value change dump * Vocal cord dysfunction* Visual Communication and Design...

s, among other film media online; for delivery by mail
Mail
Mail, or post, is a system for transporting letters and other tangible objects: written documents, typically enclosed in envelopes, and also small packages are delivered to destinations around the world. Anything sent through the postal system is called mail or post.In principle, a postal service...

. Generally, all interaction between the renter and the rental company takes place through the company's website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...

.

How it works

Most companies operate on the following model:
  • The customer joins the rental service creates a list of titles they wish to watch.
  • Titles from the list are mailed to the customer.
  • The customer watches the films and then sends them back to the rental company.


Most companies will let customers keep the films for as long as they want; customers are, however, limited to a set number of discs out at any one time. Commonly, once a disc is returned, another is sent out. Some companies or plans may have a limit on the total number of movies rented in a month. Memberships are usually billed monthly, and includes postage both ways.

Examples of online rental companies Blockbuster Video Online, Netflix
Netflix
Netflix, Inc., is an American provider of on-demand internet streaming media in the United States, Canada, and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California...

, eHit, Zip.ca and LOVEFiLM
LoveFilm
LoveFilm is a UK-based provider of home video and video game rental through DVD-by-mail and streaming video on demand in the UK, Germany and Scandinavia...

.

Variation:
Variations exist; for example, Some companies also offer video game rentals while others offer music. Redbox
Redbox
Redbox is an American company that specializes in the rental of DVDs, Blu-ray Discs, and video games via automated retail kiosks. As of the end of June 2011, Redbox had over 33,000 kiosks in over 27,800 locations....

 allows a user to reserve DVDs or Blu-ray discs online to retrieve and return the DVD at Interactive kiosk
Interactive kiosk
An Interactive kiosk is a computer terminal featuring specialized hardware and software designed within a public exhibit that provides access to information and applications for communication, commerce, entertainment, and education....

s located in various retail establishments.

Comparison websites can be used to compare the features and price of various online rental DVD companies.

Types of plans

Most companies provide variations on five basic types of membership plans:
"Limited", "capped", "monthly maximum" : These plans have a limit on the number of discs customers may have out at any one time, and also a maximum total of discs that can be rented during each billing period (usually monthly). This provides a cost ceiling for the supplier, and these plans are usually cheaper than unlimited plans. Some plans allow for additional shipments at extra cost once the maximum has been reached. Usually no credit is given if usage is below the maximum, although plans that allow this sort of "carry-over" are not completely unknown.

"Package" : Instead of each disc being sent and returned independently, a "package" plan sends a certain number of disks together, and one returns all the discs in a single package as well. A common scenario allows for two packages to be outstanding, and subsequent packages ship as a previous one is returned.

"Individual Rentals", "pay-as-you-go" : A plan of this type would allow individual rentals for a fixed fee (perhaps varying by type/age/popularity of the title), with no monthly fee. Since companies rely on the monthly fees of low-volume renters to make up for those whose shipping costs approach or exceed what they are paying, there is little incentive to offer such a plan, and the rental price would likely have to approach or exceed store costs. Still, it would be a useful alternative for occasional or periodic renters who want access to the huge selection of online companies or the advantages of mail rental, yet do not want the fixed monthly cost.
"Season Rental", "Series Rental" : These are company controlled package plans based on a set of predetermined settings by the company. Season rental plans allow customers to rent entire seasons of television shows in single shipments; the customer can not break up or modify the package. Customers often can still queue various packages together for uninterrupted service; returning the first package in order to have the next one shipped (i.e. Star Trek season 1 followed by season 2). Such plans are usually allotted either by show, or by season, for a set price.
Series plans allow customers to rent entire television or film series in bulk; often in a single shipment, (i.e. Friends
Friends
Friends is an American sitcom created by David Crane and Marta Kauffman, which aired on NBC from September 22, 1994 to May 6, 2004. The series revolves around a group of friends in Manhattan. The series was produced by Bright/Kauffman/Crane Productions, in association with Warner Bros. Television...

 TV show or the Baby Cart film series) but otherwise work identically to Season Rental plans. (The terms “Season” and “Series” are reversed in the UK.)

"Throttling"

Given sufficiently speedy mail delivery times, customers on "Unlimited" plans who turn around their discs quickly enough can receive enough shipments in a month that the company's actual cost of delivery exceeds the subscription fee, making the company unprofitable. Even below this point, higher volume customers are by definition less profitable than customers who receive fewer discs per month. If these customers become too numerous, there are various measures which the rental company can take. One is the so-called "throttling" approach, which received a fair amount of publicity with regard to Netflix
Netflix
Netflix, Inc., is an American provider of on-demand internet streaming media in the United States, Canada, and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California...

 (which refers to the practice as a "fairness algorithm"). In this case, high-volume customers may experience a greater likelihood of (slower) shipments from alternate warehouses, when the nearest shipment centre does not have the requested movie. Also, if there is a high demand for a particular movie, it is more likely that an infrequent renter will get priority over the frequent renters, with the latter receiving a movie further down on their queue. They are also less likely to receive replacement shipments on the same day a disc is received. Similar "fair use" caveats can be found in the Terms and Conditions of leading UK companies such as LOVEFiLM
LoveFilm
LoveFilm is a UK-based provider of home video and video game rental through DVD-by-mail and streaming video on demand in the UK, Germany and Scandinavia...

. In Canada, Zip.ca switched to "Capped" plans (with additional shipping charges for rentals over the cap) in part to avoid implementing "throttling".

LOVEFiLM
LoveFilm
LoveFilm is a UK-based provider of home video and video game rental through DVD-by-mail and streaming video on demand in the UK, Germany and Scandinavia...

 came under scrutiny from users over its claim to offer "unlimited" movie rentals. Some users reportedly found the company used long delays at the shipping stage to reduce the number of films a month a customer can rent. The company was subject to a dispute by the Advertising Standards Authority
Advertising Standards Authority (United Kingdom)
The Advertising Standards Authority is the self-regulatory organisation of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances...

 over the use of the word "unlimited" in their advertising. It was revealed that they practiced throttling. The company itself claimed that this "fair usage" policy means all customers get a similar service.

On March 2, 2006, Blockbuster announced that their service does not implement throttling. "We don't prioritize our customers' movie fulfilment based on how often they use our service, and we don't limit the number of movies a subscriber receives each month," according to Senior Vice-President Shayne Evangelist. However, the Terms and Conditions each customer has to agree to in order to subscribe to the service states "BLOCKBUSTER Online reserves the right to determine product allocation among members in its sole discretion. In determining product allocation, we use various factors including, but not limited to, (i) the historical rental volume for each subscriber, (ii) historical number of outstanding rentals relative to the maximum number of outstanding BLOCKBUSTER Online Rentals allowed under a subscriber's plan, and (iii) the average rental queue position of BLOCKBUSTER Online Rentals that have shipped to a subscriber in the past." concerning their Selection and Allocation of Product, which could be read as contradicting this announcement.

Marketplace summaries

This form of film rental is closely tied to the mode of delivery. The performance of the postal service in various countries can differ, and delivery times also depend in part on a country's geography. A relatively small, densely populated area such as Great Britain poses different delivery challenges to a large area such as the United States (where the major companies have developed a network of regional distribution centres). There are also country-specific implications of the DVD region coding system / Blu-ray Disc region coding system, and even studio distribution rights within regions. For these and other reasons online Blu-ray/DVD rental companies tend to operate in a single country, and even should a company expand to multiple markets, local delivery infrastructure would be required in most cases, as cross-border shipping is impractical in all but speciality cases. Relative pricing levels may also vary depending on the market, the local wholesale cost of Blu-ray/DVD product, etc. Following is a summary of the main English-speaking markets.

United States

Netflix
Netflix
Netflix, Inc., is an American provider of on-demand internet streaming media in the United States, Canada, and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California...

 is the prototype for the entire industry and still the dominant company in the U.S., ending 2008 with 9.39 million customers. Blockbuster Video claimed 1 million online customers in August 2005, 2 million by March 2006, and finished the first quarter of 2007 with 3 million. There are no recent published numbers for Blockbuster Online since 2007. Walmart briefly entered the market as well, but withdrew in 2005 and now has a cross-promotional agreement with Netflix
Netflix
Netflix, Inc., is an American provider of on-demand internet streaming media in the United States, Canada, and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California...

.

There are a number of smaller companies, some of which target specific niches:
eHit, the first such niche company, came online in 2000 targeting fans of Asian films; specifically Japan, China, and Korea, expanding to include other countries’ films over time. eHit pioneered some rental and user options later adopted by the majority of online rental companies: the ability to filter previously rented films from standard browsing views and the ability to rate movies that have not been rented from that company. eHit was also the first company to rent entire series as a single, set price rental.

Adult DVDEmpire and GoFlix.com are examples of adult-only rental companies offering a wide range of adult entertainment. CinFlix offers only imported films released outside of the United States in non-region 1 coding, including some American films, targeting the vast English As Second Language market. PuritanPicks.com and ChristianCinema both offer Christian
Christian
A Christian is a person who adheres to Christianity, an Abrahamic, monotheistic religion based on the life and teachings of Jesus of Nazareth as recorded in the Canonical gospels and the letters of the New Testament...

 entertainment. BushidoDVD.com came online in 2005 and is an example of an instructional DVD rental company offering martial arts training videos for rent. DanceFlix.com offers instructional dance related DVDs. SmartFlix.com specializes in "how to" DVDs in a wide range of subjects like welding, metal working and flying kites.

Canada

Estimates put the number of Canadian subscribers at 70–80,000, with Zip.ca
Zip.ca
Zip.ca is an online DVD rental company operating in Canada. It has a database of over 82,000 unique titles.Zip.ca is a member of the privately held group of companies, and was owner of the Ottawa Rapidz baseball team until its first-season bankruptcy....

 having around 50,000. Other competitors include Cinemail.ca, Videomatica.ca, and Kaku.ca. A common feature in Canadian plans is a refill feature where a customer is mailed by the rental company the replacement disc as soon as the customer has indicated that a DVD has been returned in the post. The extent and availability of refill varies by company. Some companies also have a vacation or suspension feature.

Blockbuster Online started DVD Rentals in Mexico during 2007, after the chain acquired a local startup called MovieNet. Initially, the service was only for condos & corporate offices; In 2008, they are going to expand the coverage in open zones (home deliveries through motorcycles personnel just like the former MovieNet did). Apparently the project was canceled due to the results during the first year.

Brazil

Blockbuster Online started DVD rentals in Brazil during 2006 and now offers Blu-ray plans as well. The 3-disc unlimited rental plan costs R$49.90/month with unlimited exchanges http://www.blockbuster.com.br. Along the decade, the number of online rental services in Brazil has rocketed up. Among the most popular are NetMovies and Pipoca Online.

United Kingdom

Given the relatively small geographical area and high population density of the UK, online DVD rentals have some differences from in the US, as a single shipping facility can serve the entire country. There are a large number of companies, but many are actually separately branded versions of the dominant company, LoveFilm
LoveFilm
LoveFilm is a UK-based provider of home video and video game rental through DVD-by-mail and streaming video on demand in the UK, Germany and Scandinavia...

, which provide the website, fulfilment and support services. In most cases the partner is a company with access to a large existing customer base (supermarket chains, newspapers, media companies, etc.) which it can direct to its branded site. Each brand may have slight differences in price, quantity, website features or ancillary benefits, but the actual DVD service will be from the same source.

In April 2006, LoveFilm merged with its major rival Video Island, which had operated ScreenSelect and other brands, and in February 2008, LoveFilm acquired Amazon's DVD rental business in the UK and German markets. In return, Amazon became the largest shareholder of LoveFilm. Remaining competitors include Blockbuster
Blockbuster (movie rental store)
Blockbuster LLC is an American-based provider of home video and video game rental services, originally through video rental shops , later adding DVD-by-mail, streaming video on demand, and kiosks. At its peak in 2009, Blockbuster had up to 60,000 employees. There are around 1700 Blockbuster...

.

On 9 September 2009 DVD rental comparison site 'Choose DVD Rental' pointed out that market pressures were forcing many smaller UK online DVD rental sites to shut down.

Australia

There are several providers in Australia, the most prominent being Quickflix (listed on the Australian Stock Exchange) and BigPond Movies. Information on the Quickflix
Quickflix
Quickflix is a service offering online DVD and Blu-ray disc rental-by-mail in Australia , as well as instant streaming. Established in 2003 and headquartered in Sydney, NSW, it has amassed a collection of more than 50,000 titles and over 80,000 subscribers.-Disc rental:The company provides a...

 site lists over 50,000 DVD titles on offer. Quickflix's has over 80,000 subscribers and is considered market leader. BigPond Movies announced in June 2011 that they will be pulling out of the DVD-by-mail market at the end of September 2011 and are, instead, offering subscribers the option of downloading movies directly via their proprietary T-box device.

New Zealand

There were three online DVD rental companies in New Zealand, all offering flat-rate packages. The three companies were DVD Unlimited
DVD Unlimited
DVD Unlimited was an DVD-by-mail service based in Auckland, New Zealand. It was a wholly owned unit of SKY Network Television. It competed directly with Movieshack and Fatso....

, Fatso
Fatso (online DVD rental service)
Fatso is an Online DVD rental service based in Auckland, New Zealand. and was founded in 2004 by Rob Berman of Westside Media. In 2008 it merged with competitors DVD Unlimited and Movieshack to form Screen Enterprises Limited, which operates a single service under the Fatso name...

 and Movieshack
Movieshack
Movieshack is an online DVD rental company in New Zealand. Based in Auckland, it was launched on 28 June 2004 and introduced commercial online DVD rentals to New Zealand...

.

On June 7, 2008 all three companies merged into Fatso
Fatso (online DVD rental service)
Fatso is an Online DVD rental service based in Auckland, New Zealand. and was founded in 2004 by Rob Berman of Westside Media. In 2008 it merged with competitors DVD Unlimited and Movieshack to form Screen Enterprises Limited, which operates a single service under the Fatso name...

, owned by SKY Network Television
SKY Network Television
Sky Network Television Limited , , is a New Zealand pay television service. On 30 June 2011, Sky had 829,421 subscribers, which comprises:*808,617 digital subscribers*20,840 other subscribers...

.

Singapore

Hollywoodclicks and Videohub are the two most established online DVD rental services in Singapore. Hollywoodclicks was the first to market, followed by Video Ezy Online. Video Ezy Online rental service was shut down at the start of 2009 and was converted to a home delivery service.

India

There are several online DVD rental services in India, all running their own delivery systems and logistics. Unlike online DVD rental companies in other countries, online DVD rental services in India do not use the postal service as a means of delivery or exchange.

India's first online DVD rental service Clixflix started in 2004, and was followed by several others like SeventyMM, EZEVID,MovieMart, Madhouse, Cinebox, CineSprite, CatchFlix and HomeView in no particular order. Madhouse and Seventymm have merged and the combine is now known as Seventymm.

The model has been tweaked in India to suit the local marketplace. Cinebox serves in Ahmedabad city only with their own shipping service. Clixflix serves members through stores, phones, SMS and the internet. Madhouse uses drop boxes. SeventyMM and Catchflix operate wholly online models. Cinesprite operates a multiple delivery model. Another powerful contender is Bigflix
Bigflix
BIGFlix, a part of Reliance BIG Entertainment is the largest Video-on-Demand and currently the largest online - offline movie rental service in India. As of November 2011, BigFlix has shut down it's DVD rental division and will only offer streaming movies. The decision was taken abruptly and has...

 from the Reliance Anil Dhirubhai Ambani (Reliance ADA) Group one of India's largest business houses.
Currently there are three national level companies providing online DVD rentals:
  • Bigflix: There are offline and online options. Bigflix has approximately over hundred outlets at various locations across cities. The subscriber can visit the local store and rent movies according to their plan. Subscribers who are not nearby any store can book movies online and get the service from a centralized location (if there is any) in their city. They only rent DVDs.
  • Seventymm
    Seventymm
    ' is an Indian online shopping company offering exclusive range ofmovie merchandise,apparel,electronic gadgets, fashion accessories,footwear,home accessories, jewellery,watches,home decor, kitchen appliances ,kids stuff , movie DVDs and other life style products.The company was initially into...

     operates from Delhi, Mumbai and Bangalore. The subscriber can book the movie online or by phone and they have their own delivery boys deliver the movies. They only rent DVDs.
  • Moviemart is the online rental company serving the whole country using Blue Dart (a DHL subsidiary) courier. The delivery and pickup charges are paid by Moviemart. Moviemart is the only online rental company in India renting Blu-rays and PlayStation 3 games.


Cinesprite and Clixflix have closed their operations.

Japan

Major online rental Blu-ray Disc
Blu-ray Disc
Blu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The plastic disc is 120 mm in diameter and 1.2 mm thick, the same size as DVDs and CDs. Blu-ray Discs contain 25 GB per layer, with dual layer discs being the norm for feature-length video discs...

 and DVD companies are Rakuten rental and Tsutaya discas and Posren

South Africa

The first company to use this model in South Africa was PushPlay, launched in July 2006. Initially they delivered to Cape Town
Cape Town
Cape Town is the second-most populous city in South Africa, and the provincial capital and primate city of the Western Cape. As the seat of the National Parliament, it is also the legislative capital of the country. It forms part of the City of Cape Town metropolitan municipality...

 only, and they deliver using the postal service. DVDs Online offer a similar service, but courier to the door. They are therefore more expensive, but offer quicker deliveries. BigPix launched in Durban
Durban
Durban is the largest city in the South African province of KwaZulu-Natal and the third largest city in South Africa. It forms part of the eThekwini metropolitan municipality. Durban is famous for being the busiest port in South Africa. It is also seen as one of the major centres of tourism...

 in June 2007, also using the Post Office.
Signals Home Entertainment a video rental store, located in Lansdowne, Cape Town rents out DVDs, Blu-ray movies and Games online, also using a courier company to deliver and collect discs to their users.

See also

  • Automated teller machine
    Automated teller machine
    An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...

  • Blu-ray Disc
    Blu-ray Disc
    Blu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The plastic disc is 120 mm in diameter and 1.2 mm thick, the same size as DVDs and CDs. Blu-ray Discs contain 25 GB per layer, with dual layer discs being the norm for feature-length video discs...

  • HD DVD
    HD DVD
    HD DVD is a discontinued high-density optical disc format for storing data and high-definition video.Supported principally by Toshiba, HD DVD was envisioned to be the successor to the standard DVD format...

  • DVD
    DVD
    A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....

  • VHS
    VHS
    The Video Home System is a consumer-level analog recording videocassette standard developed by Victor Company of Japan ....

  • VCD
    VCD
    VCD is a three-letter abbreviation with multiple meanings, as described below:* VCD Athletic, semi-professional football team* Video CD* Voice command device* Value change dump * Vocal cord dysfunction* Visual Communication and Design...

  • Interactive kiosk
    Interactive kiosk
    An Interactive kiosk is a computer terminal featuring specialized hardware and software designed within a public exhibit that provides access to information and applications for communication, commerce, entertainment, and education....

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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