| DVD Video Rental Store Resources |
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Competitive Landscape - Demand is driven by personal income and the timing and popularity of new movie releases. The profitability of individual companies depends on the right merchandise mix and inventory financing costs. Large companies have advantages in economies of scale in purchasing, distribution, and advertising. Small companies compete effectively by providing superior customer service and catering to local demographics. The industry is labor intensive: average revenue per worker for a typical company is less than $100,000. Products, Operations & Technology - Major services include renting video tape and discs (51 percent of revenue); home health equipment (15 percent); and consumer electronics and Video stores are typically open 365 days a year and stock hundreds of titles. Household goods rental companies usually have several thousand items in their stores, which can approach 9,000 square feet. Video and rent-to-own companies have large automated distribution facilities that store merchandise before delivery to local stores. Video companies generally use a third-party delivery agent, such as UPS. Rental companies have computerized inventory systems to efficiently track merchandise. Video companies use customer relationship management (CRM) systems to track consumer purchases and create a transaction database to formulate and adjust marketing plans. Increasingly, companies are using radio frequency identification (RFID) tags on inventory to help tracking and reduce losses. Source: http://www.hoovers.com/consumer-product-rental-/--ID__298--/free-ind-fr-profile-basic.xhtml Excerpt: How Technology is Changing DVD Rentals After watching the film you had to go back out and drive it back to the store or face a late fee. Now the next chapter of DVD rentals is upon us. It involves being able to rent movies by downloading them from online to your house without leaving home or stopping at the post office. Netflix has released its newest product which is a piece of equipment you can hook into you television and it will connect itself to the internet. Once connected, you can browse the movie selection and simply pick whatever movie you want to see. While the DVD rental industry has advanced it makes you wonder where we could end up. It was not too long ago we only had VHS tapes in our VCR's and know we download them from the internet directly to our screens. Makes you wonder how it will work in another ten years! Source: http://www.associatedcontent.com/article/809471/how_technology_is_changing_dvd_rentals.html?cat=15 Excerpt: Wholesale DVD distributors license the DVD distribution rights from studios producing the movies and supply DVDs to retail stores, online merchants, DVD rental companies and mail order stores. Often the DVDs are manufactured or imported by wholesalers themselves. The major revenue accruing to wholesale DVD distributors is through the sale of video products to retail shops and video rentals. There has been considerable growth in the mail order rental via the Internet in the US. Netflix, which is one of the largest online rental companies, has more than two million customers. The company expects to have about five percent share of the entire US market in 2006. It ships about three million DVDs each week. Source: http://ezinearticles.com/?DVD-Wholesale-Distributors&id=234430 Excerpt: Blu-ray Disc is not being adopted as fast as once expected, but the format’s relatively steady growth remains a huge driver for the home entertainment business, according to Futuresource Consulting. At a presentation at the Entertainment Supply Chain Assn. Conference here Tuesday, Futuresource predicted that by 2012, Blu-ray software sales will make up half of home entertainment business. PS3 owners generally purchase one to two Blu-ray film/TV titles each year, versus the five to eight such titles that Blu-ray set-top-player owners purchase annually. As the maturing standard-definition DVD market should continue to lose value—down 13% in revenue in the U.S. in 2009, estimates Futuresource—Blu-ray’s momentum will be responsible for stabilizing the category. With Blu-ray software making up 50% of the market in 2012, digital will comprise 29%, split between TV video-on-demand at 16%, online video at 10% and mobile sales at 3%. Futuresource also is optimistic for the business because, the company says, Blu-ray owners are heavy media consumers in general. Source: http://www.videobusiness.com/article/CA6667297.html?nid=2705 Excerpt: In addition to requisite Fourth of July weekend parades, fireworks and barbeques, consumer electronics retailers aggressively marketed Blu-ray Disc players separately and in home theater systems with price cuts not seen since Black Friday. The Minneapolis-based retailer cut $50 from Panasonic’s DMP-BD80K with software links to YouTube and Picasa music downloads for $399.99, and the DMP-BD60K with Netflix streaming (separate subscription required) for $299.99. The Samsung BDP-1600 with BD Live, Netflix and Pandora music streams retailed for $249.99 after a $50 reduction. In Southern California, Fry’s Electronics offered two free Sony Pictures Home Entertainment BD movies with the purchase of a Sony Blu-ray player for $199.99. Titles included 21, Dr. Strangelove, The Da Vinci Code and You Don’t Mess with the Zohan. The retailer also offered a LG player with BD Live for $187. Arman Ozdere, sales representative with Paul’s TV in Irvine, Calif., said Blu-ray sales remain steady (“not spectacular”) with consumer awareness of the high-definition format strong. Source: http://www.homemediamagazine.com/blu-ray-disc/fireworks-parades-and-blu-ray-16260 Excerpt: Those in smaller communities enjoy the peace and serenity of the small town atmosphere, but may have difficulty growing a business with seemingly limited customers.
Source: http://advertising.suite101.com/article.cfm/advertising_a_small_town_business |
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