Movies & TV

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Consumers have a number of options when it comes to viewing movies at home. Two of the most popular are renting movies at the local video store and renting movies via an online service. An informal survey was recently conducted on a home electronics/entertainment site regarding the movie viewing habits of website visitors. The results pointed to some of the misconceptions that still exist about online rental of DVDs by consumers that have not yet tried the service.

Participants in the survey were asked a number of questions, including how often they watch movies at home, whether or not they rent movies online, and if not, why. Nearly 28% of those responding indicated that they rent movies online. Of the remainder, the most frequently cited reason for not using an online movie rental service was concern which centered around the perception that online movie rental would be more expensive than the local video store. When looking at a couple of scenarios it becomes evident which method tends to be more affordable.

For individuals who indicated that they watch only 1 to 3 movies per month the savings from renting online are small. Renting 2 movies per month at the local video store would average around $7.40 whereas renting from Netflix for example, if they chose the plan that has a limit of 2 movies per month, would run $5.99. After getting a video at the local store the user would have overnight or perhaps one week to return the movie but an online rental would allow them to keep the movie for an unlimited period of time.

For those individuals who responded that they view 1-3 movies per week, the savings would be more significant. For instance, renting 8 movies per month would run around $29.55 at the local store and as low as $14.99 online if they chose the “2 out at a time” plan or $17.99 for the “3 out at a time” plan. As viewing increases so does the likelihood of experiencing greater savings.

For those who responded that they view 4 movies per week (averaged out to 16 per month) the average cost at the local store would be $59.04 while online rental would be $23.99 allowing the user “4 out at a time”. Renting through a service like Netflix generally does not limit how many movies a person views but rather, how many movies they can have out at any given time. Therefore rentals are more or less unlimited with many of the plans.

The second most frequently cited reason for not utilizing online movie rental services was that the individual rented movies on the spur of the moment and did not plan ahead. Certainly renting movies online and receiving them through the mail would not allow someone to decide at 6:00 p.m. that they want to see The Queen and receive it so that they can be viewing the movie by 8:00 p.m. However, the delay for receiving movies selected through the mail is only 1 business day which would seem sufficient in most instances.

The future of DVD rental may be changing however as Netflix announced in early 2007 that customers would now have the option of watching movies instantly via a streaming service that is now available for some movies. The service should be quicker than most download services as streaming allows viewing of the movie as it is streamed rather than waiting until download is complete. Although a full transition from the current mail delivery system to a download type of service will take time, it is clear that immediacy will only continue to improve. It would seem that other online movie rental services would follow suit in coming years in order to compete.

Consumers who have not been initiated into the online movie rental world also may be unaware of other benefits/features of such services.

* Greater selection- A typical video store has 10,000 to 15,000 titles available whereas the Netflix online movie rental service has over 80,000. This would seem to eliminate the problem of consumers arriving at the store only to find that there is nothing there that they really want to see.

* There are no fees related to the delivery and return of DVD’s; and there is no traveling to and from the store as movies are delivered to their door or to their home via streaming.

* Movie selection is assisted by user reviews through online programs like Netflix.

* Trials of online movie rental services are generally risk free as there are free trials available and no cancellation fees.

* There are never any late fees nor restrictions on how long a movie can be kept.

Misconceptions about online movie rental services appear to limit the participation of a significant number of consumers. Online movie rental probably offers the services that most consumers want, even if they don’t know it yet.

Certainly enjoying movies at a theater is a unique experience. From the towering screens to the Dolby Digital DTS sound systems, the wow factor of a theater can’t be matched. However, due to convenience and affordability, enjoying movies at home whether on a PC or a big screen plasma display is the more typical scenario for the majority of movie fans. The options for obtaining and viewing movies at home have certainly expanded in the past decade with the introduction of online movie rental and movie download services in addition to the more traditional offerings provided by local video stores as well as live and pay-per-view television.

For film fans on a budget, enjoying more movie viewing per dollar justifies a quick look at some of the options.

Hands down, enjoying movies on live television, whether cable, broadcast, or satellite TV, is the most economical option. The selection viewers have to choose from is significantly limited by the programming schedule but there is no cost beyond the typical monthly fee for any premium packages. Another cost free method of enjoying movies is as simple as a visit to the local library. Public libraries loan out not only books and CDs but movies on VHS and DVD as well. Although the selection is somewhat limited, the price is right.

Coming in second, online movie rental has the potential to provide more movie entertainment for the dollar than other paid services. As an example, Netflix offers numerous plans but their most popular plan allows users to have up to 3 movies out at a given time for $17.99 per month. If a typical user views only 6 movies in a given month this would average out to $2.99 per movie. The price per movie could potentially be less for those who view more movies throughout the month; for instance the price per movie would drop to $1.99 if 9 movies were watched throughout the month. Making the value of online movie rental services even greater is the huge selection offered; in the case of Netflix, users can select from over 75,000 titles.

Movie download services and renting at the local video store are probably equivalent in pricing. Movielink rental pricing for instance starts at $1.99 and goes upward to $4.99 while many video stores have rentals from $2 to $5. The selection of movies is currently somewhat greater at local video stores; perhaps 10,000 to 15,000 titles to choose from versus fewer than 10,000 with most legal movie download services. However, the future may hold a different picture as online movie download services are providing larger libraries over time as they acquire more films.

A bit more expensive are the pay-per-view movies made available by most cable and satellite TV providers. With costs averaging around $3.99 to $4.99 their pricing is reasonable but can become significantly more costly than other services if more than one or two movies are viewed over the course of a month. In addition, the pay-per-view offerings are often restricted to one or two dozen movies at any given time based on the programming schedule for a given month.

Luckily whether considering movie downloads, online movie rental services, use of the local video store, or pay-per-view, movie fans are able to enjoy the services risk free. Movie download services, video stores, and pay-per-view are charged on a per movie basis with no ongoing commitment to purchase more movies. Likewise, although online movie rental programs charge a monthly fee, services such as Netflix require no commitment to continue the program and no cancellation fees to discontinue.

From live television and pay-per-view to movie downloads, online movie rental, and video stores, movie lovers should be able to discover a movie service that offers the films they love at a price they can afford. Which option best meets their budget will depend on the number of films they tend to view per month and how wide of a selection they need to find the entertainment they want.