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Video Rental

Status: Acknowledged
by Griswell on ‎01-17-2019 12:26 AM

To whom it may concern,

 

Video rentals are dying. Netflix, Hulu, and Amazon amongst others stream and rent online tv shows and movies. The ability to find and watch a single film you want is limited to local video stores, as Blockbuster has fallen victim to the free market.

 

Best Buy has an opportunity to take advantage of the situation. By creating a rental service for movies, you would offer a solution to those that wish to watch specific films that are not being streamed on their site of choice.

 

My proposal is that Best Buy set up an online rental system that can deliver rented videos to customers, as well as the ability to rent movies at thier physical locations. After a customer has rented a movie, they could then be offered the opportunity to keep the movie by buying it a reduced (from store) price, via a function on the online rental site. This feature is intended to move more products than Best Buy currently does, creating additional revenue.

 

Best Buy already has the supply chain and physical locations to support a rental system. The main barriers are acquiring the specific licenses for the movies, setting up an online selection and ordering system, and negotiating a favorable deal with an appropriate delivery service.

 

The key idea to understand here is that by expanding Best Buy's potential avenues of income, and bolstering those that currently exist, the store will remain competitive and forward thinking.

 

Please take this idea under consideration.

Status: Acknowledged

Thanks for the suggestion. At this time we will not be launching a video rental service.

Comments
by Trusted Contributor
on ‎01-17-2019 01:10 PM

You are exceptionally correct that video rentals are dying. In fact physical rentals are making their last gasp.  (we still have one in a section of a local grocery store). Even Red Box has gone away.

 

Best Buy has already all but gotten rid of physical movie sales in stores.  

 

While your idea has merit, and is what Netflix started with, I do not see getting into Movie rentals, especially physical, as being anything viable or profitable. 

 

The world is going digital.  Amazon can rent a new movie to 1000 people and it will cost them almost nothing.  To rent the same movie in a physical copy and send it to 10 people would cost more (these numbers are made up but I thought they sound good)

 

In Q1 of 2018 DVD rentals were $23,000,000 in that same time frame electronic rentals were $55,000,000 (not made up numbers but fact)


If you look at a graph  of the number of Netflix DVD subscribers (which is the same model as you proposed) the decline is almost as fast at the increase in Streaming only subscribers.  

 

Anyway the idea has been done by a very successful company that was smart enought to get out of it and refocus. 

by Senior Social Media Specialist Senior Social Media Specialist
on ‎01-23-2019 01:03 PM
Status changed to: Acknowledged

Thanks for the suggestion. At this time we will not be launching a video rental service.

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