It seems Amazon is going to get into the DVD rental by mail game, going up against the established leader Netflix, who also announced going into new territory by partnering with Tivo for video on demand services.
Walmart already does this, but methinks the venn diagram of Walmart customers and Netflix customers best resembles a pair of john lennon type glasses.
Amazon and Netflix however, probably do compete for the same customers however, so this will be Netflix's first real challenge.
The key will be pricing, and it seems that Amazon will attack this a little differently, offering a limit to the number of DVDs that can be rented per month in exchange for a lower fee. Netflix currently allows one to rent an unlimited number set to a fixed queue, that is you can have 3 or 5 out at a time, but can rent an unlimited number of times.
Posted by Steve at December 10, 2004 08:45 AM | TrackBack