Quick quiz: If you were made to wait two months in order to rent say, Final Destination 5, are you going to be more likely to purchase the DVD, or is it more likely you will forget it was on the saturated home-video market? An easy enough answer, maybe, but not for some of Hollywood's major studios. They continue banking on the former scenario, despite your continued insistence on renting movies at affordable rates. As it turns out, a number of Hollywood?s companies are trying to revitalize their revenues and expand their scope -- but those plans are getting screwed up by your viewing and spending habits.??
Let's first reflect back to last fall, when Netflix announced the concept of Qwikster -- the home-viewing giant's infamous and short-lived plan to split the company into services (and prices) for DVD rentals and streaming video. The inspiration for that debacle was their forecast of dwindling DVD demand. The result? Vilification, ridicule, mass subscriber exodus, and a plummeting stock price.
What a difference a few months makes. The company recently announced a surging final quarter, recovering swiftly from its folly and managing to replace a majority of those subscribers lost during the split-up proposal. More surprising was the news that Netflix's main rival, the DVD-kiosk operator Redbox, took over as the number-one renter of DVDs and Blu-ray discs. Expect the company to maintain that top position, as this week it announced the purchase of 10,000 kiosk machines operating under the Blockbuster Express banner from rival company RCR. All of this is due to a simple market fact: Demand for affordable DVD rentals remains strong.
Meanwhile, studios cling to the evaporating segment of DVD sales -- and some are…
Source: http://www.celebrities.com/celebrities-gossip/how-your-dvd-rentals-are-changing-hollywood/
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