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Amazon Talking with Netflix And Blockbuster 130

Posted by Zonk from the netzon-or-ambuster dept.
Mike from HackingNetflix.com writes "Reuters is reporting that 'Amazon.com has approached online DVD rental service companies, including Blockbuster and Netflix, to explore a partnership rather than launching its own U.S. DVD rental service.'" More from the article: "Despite its online might, shopping giant Amazon faces a potentially expensive battle to crack the competitive U.S. online rental market. The company started its own DVD rental service in Britain in December. Rumors that Amazon would enter the U.S. online DVD rental market sparked a price war late last year between Blockbuster and Netflix, which pioneered online DVD rental and now controls about 75 percent of the market." So there may be a happy ending to this tale for Netflix after all.
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Amazon Talking with Netflix And Blockbuster More

Amazon Talking with Netflix And Blockbuster

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  • Don't forget about Wal-Mart (Score:3, Funny)

    by tech-hawger ( 874902 ) on Friday April 15, 2005 @09:50AM (#12243773) Homepage
    they're going to be a dvd rental force to be wreckoned with, oh yes. ;)

    • Re:Don't forget about Wal-Mart (Score:5, Insightful)

      by Anonymous Coward on Friday April 15, 2005 @10:03AM (#12243860)
      Not likely. Online video rentals are really about quality vs quantity and that is not Wal-marts forte. Netflix has a large selection of movies but may not always have enough of the most popular ones. Walmart would always have enough copies of popular dvds but would have a limited catalog otherwise. Besides if they were going to break into video rental they would have done it as brick and mortar first.

    • Re:Don't forget about Wal-Mart (Score:4, Informative)

      by GodBlessTexas ( 737029 ) on Friday April 15, 2005 @10:09AM (#12243904) Journal
      As long as you like full-frame DVDs. They even sell widescreen TVs now, but their DVD selection is still slanted towards full-frame.
      • I was just at a wal*mart getting some food and they had a huge widescreen tv set up with the star wars frito-lays display. On the widescreen tv was running a full frame version of phantom menace with big black bars on the sides.
        • I was just at a wal*mart getting some food and they had a huge widescreen tv set up with the star wars frito-lays display. On the widescreen tv was running a full frame version of phantom menace with big black bars on the sides.

          Idiots! As every widescreen TV owner can demonstrate, the way to view 4:3 video is to stretch it so that everyone looks squat and fat. *cough*

          Some people seem to *really* value their screen being full over anything else. When I was at university, my flatmates watched anamorphic
    • Wal-Mart censors. They only carry certain family friendly things. Certain games like Grand Theft aren't carried there.

      Think an establishment like that will do well renting DVDs? Think that French film that refers to the U.S. as capitalist pigs gets on the list? I don't think so.

      Outlets that even whip of censorship get hammered in the market. If Amazon refused to carry certain books because of religious or political slants, they would get creamed, by Wall Street if nothing else.

      I'm sure the fundies w
      • Actually they do carry Grand Theft (my copies within the series were purchased at a local WalMart store). They also sell it online:

        Grant Theft at WalMart [walmart.com]

      • They're inconsistent on censorship. They don't sell music with explicit lyrics, only the clean, edited versions. They do sell R-rated movies and GTA San Andreas. They have vetoed magazine covers that were too racy (I think Maxim?). They pulled Jon Stewart's book, America, from the stores because it had photoshopped nudes of the Supreme Court justices, but they still sell it online. In any case, you won't find any obscure titles. They only care about stocking the biggest sellers.
    • I have been a user of the DVD rental for well over a year or so; they have had a fairly good selection, and when I requested a title they didn't have; bang, it showed up.

      And, that nonsense of full-screen bias may be in the stores, but not their rental.

      Only recently have their "Customer Service" become crap; example: they keep insisting that "20,000 Leagues" is available; Disney, not the silent. It's not now but was there before, and I get canned answers from support saying it is. I see that some Disney th

  • dvd streaming? (Score:4, Interesting)

    by rovingeyes ( 575063 ) on Friday April 15, 2005 @09:51AM (#12243778)
    Amazon has been one of the innovative online business for a long time. How about streaming rental service? Strike a deal with Tivo or somebody else. Why don't they still embrace the future?

  • Well, I'm certainly in. (Score:5, Funny)

    by Leontes ( 653331 ) on Friday April 15, 2005 @09:51AM (#12243781)
    Yeah, I wouldn't mind a piece of the pie as well. Netflix, let me jump on the back of your obviously well designed and considerably successful business. Will you just send me a check, or should I do anything else?

    • Re:Well, I'm certainly in. (Score:5, Insightful)

      by GodBlessTexas ( 737029 ) on Friday April 15, 2005 @10:11AM (#12243929) Journal
      It's not that simple. What Amazon brings to the table is exposure. Amazon is without a doubt the world's largest on-line retailer with the most exposure, and that's something that Netflix can capitalize on. Most retailers or sales oriented companies would give up body parts to partner with Amazon, and that includes some very high profile companies like my previous employer who was the market leader in luxury retail.
      • True enough, with capital and name recognition, money can multiply exponentially. It's just pretty incredible to me that 'Mr. bigwig likes the idea of cookies too.' is such a big deal. I mean, it is, and but it's the stark depressing stunning beauty of economic fluidity and it's nice just to sit back with a glass of milk, and say, 'damn, cookies. that's just so damn cool, they are going like hotcakes'.
      • Right. Because nobody's heard of Netflix yet.

        ----
        Fuck texas.
      • Netflix doesn't have a marketing problem. It has an operational issue. Although they say you can rent an unlimited amount, they slow the snail mail process down so you'll get less DVDs in the mail.

        Operationally they are losing money on postage. The less they send you, the more they make. How in the world will Amazon fix that. They bring nothing to the table.

        • Huh? I get my Netflix DVDs in 2 days pretty consistently, usually a day before they say I'll get it on the site.
        • Unless they can bring cheaper shipping costs. Amazon has a good shipping system, and they might (I really don't know, but would think this is plausible) have some agreements with shipping companies (including USPS) for discounts due to high volume. Now Netflix also has high volumbe - but put those two together and they might be able to shave off another 2-3 cents per delivery which is a LOT of money for the amount of deliveries Netflix does.


          As for other posters who mentioned the benefits of Amazon's

  • What is it with? (Score:5, Insightful)

    by l4m3z0r ( 799504 ) <kevinNO@SPAMuberstyle.net> on Friday April 15, 2005 @09:52AM (#12243786)
    What is it with the attitude that _____ is dying. For instance in this case omg netflix was dying but its a good thing amazon jumped in to save them. Thats not whats happening here, netflix was never dying and they did not need amazon to resuce them.

    Apple is dying, Tivo is dying, BSD is dying, netflix is dying etc etc etc... /me is tired of hearing this kind of nonsense.

    • I couldn't care less if Netflix ends up dying. I gave up my subscription a few months ago when they decided to take 6 days to send out the next movie in my queue after receiving the last one. Artificial delay bullshit is the reason I listed when they asked why I was leaving. Since then I've joined Blockbuster online and am quite pleased. Smaller selection, but I now get two free game rental coupons a month. Considering those go for $6.99/each, it's really not a bad deal.

      • Re:What is it with? (Score:5, Informative)

        by l4m3z0r ( 799504 ) <kevinNO@SPAMuberstyle.net> on Friday April 15, 2005 @10:04AM (#12243869)
        I've used both, I prefer netflix for 2 reasons. Better selection and cleaner/less annoying interface for movie selection.

        I agree the articial wait stuff is annoying but, blockbuster is playing good now, you just watch and see what happens when they can no longer subsidize their online service with there brick and mortar stores. What it comes down to is that they can take losses and just soak up cash from there already existing business. They aren't commited to offering you this service, they are commited to burying netflix and then they will go back to the brick and mortar which is WAY more profitable. Watch and see..

        • I have no doubt that Blockbuster online will turn to absolute shit sometime soon. They've never been concerned about the customer. I figure when that time comes I'll go ahead and give GreenCine a try. Hopefully by that point they'll have more distribution centers (I live on the east coast). Or maybe I'll give Netflix another chance, or just dump the rental thing entirely for six months or so...
        • Actually, Blockbuster has a much better selection, from what I've seen; AND the movies are available in widescreen. Netflix, on the other hand limits you to panscan garbage and is missing a lot of classics. Better selection, widescreen, price, and free coupons were my reasons for switching to blockbuster. On the surface, the only reason for sticking with netflix is if you actually like panscan.

          I do have a big problem with blockbuster's service, however. Many of the new releases and other popular movie
      • I'm not familiar with the artificial delay issue. I used Netflix for a long time and always got my movies quickly. I canceled my free trial of Blockbuster because I constantly had to wait for movies in my queue. With Netflix there was almost never a wait. When you say artificial delay you're not talking about a popular movie that they're out of?
        • I just recently went to cancel my BB account. They acknowledged their current problem of not enough movies (supposedly too much demand), and gave me a free month. Still going to cancel at the end of this free one, and continue on with NetFlix.
        • No, I'm not. I'm talking about movies being in my queue that are listed as "available now" that they didn't bother sending out for 6 days after receiving the last one. There's the separate issue of different availability for different subscribers (even in the same household). I've also watched movies go from "available now" to "very long wait" in a matter of minutes.
      • when they decided to take 6 days to send out the next movie in my queue

        Is the rumor true that Netflix sends movies out faster to new customers and gradually slows down the longer you've been with them?

        I'm a Netflix n00b - been with them about 2 months - and I couldn't be more pleased with their turnaround time. I drop a disc in the mail Monday, the next one is at my house Tuesday. I live in DC and they've got a distro center in the DC burbs, so that may be part of the reason, but I'm wondering if this

        • It is absolutely true. I live in DC, too. When I first moved here and signed up with them I was having one or two day turnarounds. After about 6 months it lagged to the 6 days I mentioned above (that was the extreme - average was about 3-4 days). Blockbuster online's distro center is also in Gaithersburg, so you may want to consider them when Netflix starts lagging on you.
        • Is the rumor true that Netflix sends movies out faster to new customers and gradually slows down the longer you've been with them?

          No, it's more complicated than that. Presumably, Netflix has algorithms to calculate who should get which movies based on how fast they return them, where they live, and (if you believe the rumors) how long you've been a member. They alter these algorithms constantly, so the behavior people talk about now may have changed by the time you sign up.

          I've used Netflix for years.
      • For what its worth you anyone lurking might want to look at DVD Rentz. They have good service reasonable prices and carry the full range of video rentals.
    • What is it with the attitude that _____ is dying.

      Well, this attitude is dying. Therefore prepare to live with it for a long time.

    • Dear AOL User (Score:4, Funny)

      by TimeTraveler1884 ( 832874 ) on Friday April 15, 2005 @10:09AM (#12243906)
      "Apple is dying, Tivo is dying, BSD is dying, netflix is dying etc etc etc... /me is tired of hearing this kind of nonsense."
      Dear AOL user,

      It has become apparent to me that you have mistakenly found your way on to Slashdot.org. I do not blame you for your misplaced comments. You likely felt right at home, with Slashdot's prevalent use of Internet abbreviations and lack of capitalizing proper nouns.

      However, you may not be aware that the use of "/me" is not a valid Slashdot command. Rather, it makes you sound like Jar Jar Binks. /me sa thinks you lika jar jar. I only bring this to your attention so that you don't feel alienated when someone replies to your comment citing poor grammar and misplaced IRC commands.

      Hope this helps.

      Sincerely,
      NetZero User

    • After returning from being abroad for a year and a half, I decided to restart my Netflix subscription, especially since they now have a $14.99/month, 2-out plan, which is more suited to the amount of time I have to watch movies. But I soon discovered that this price is only available to "new customers". I called them up and told them that I could get the same plan from Walmart for cheaper, $12.97/month to be exact. It just didn't seem to get through to them that I don't give an f*cking damn whether they con
      • Dude, they gave you an offer to attract more new customers. Every company runs "for a limitted time only" or "sign on bonus" campeigns. TANSTAAFL.
        • Except in this case, there is a free lunch: Walmart.

          Come on, if your competition is offering a better price (all other things being equal), even if only for a limited time, then you have to match it also for that time. This is not like I was an ongoing Netflix customer, heard about their promotion, quit the service and tried to re-subscribe just to get the better price. I hadn't been a customer for almost 2 years. For all intents and purposes, I am a new customer (a lot can change in the business world in

          • And, if you think that competing with Walmart on price is a way to stay alive as a business, you deserve what you get as a Walmart customer.

            Any pricewar with Walmart is a race to the bottom with Walmart on top. If Netflix did, indeed, match this price, Walmart would offer it at $9.95. Walmart's economy's of scale, ruthless business practices and willingness to leverage gigantic loss-leaders means that you have to compete on things *other* than price when Walmart is involved.

            Also keep in mind that in EVERY
    • Apple is dying, Tivo is dying, BSD is dying, netflix is dying etc etc etc... /me is tired of hearing this kind of nonsense.

      Don't forget the biggest fiction of all around here - Microsoft is DYING... (?)
    • Have you heard of Gameznflix? They offer DVDs and Games for the same price as Netflix offers only movies.
      This is a young start up and maybe squashed by the tough competition. But they are unique in offering games and flix, and thats why I think they should survive.

  • Extortion? (Score:4, Insightful)

    by pla ( 258480 ) on Friday April 15, 2005 @09:52AM (#12243788) Journal
    Reuters is reporting that 'Amazon.com has approached online DVD rental service companies, including Blockbuster and Netflix, to explore a partnership rather than launching its own U.S. DVD rental service.'" More from the article: "Despite its online might, shopping giant Amazon faces a potentially expensive battle to crack the competitive U.S. online rental market.

    Ummm... Does anyone else read that as "we plan to take over your market but might have trouble getting started, so just give us a cut and we'll let you live"?

    NetFlix already has a healthy base of customers, and anyone interested in such a service already knows about them. What does Amazon have to bring to the table, other than not crushing them like a bug?

    • And/Or (Score:3, Insightful)

      by Prince Vegeta SSJ4 ( 718736 )
      so just give us a cut and we'll let you live"?

      and/or they feel that by entering the market they will further commoditize DVD rental prices, & decrease margins. This could make the business less profitable for all involved. By trying to come up with a partnership, prices could potentially remain higher than otherwise.

      • what you're talking about is collusion, and very very very illegal.

        • Re:And/Or (Score:4, Insightful)

          by Dun Malg ( 230075 ) on Friday April 15, 2005 @11:14AM (#12244499) Homepage
          what you're talking about is collusion, and very very very illegal.

          No, not when there's an overt partnership. It's only collusion if they are competitors who "unofficially" decide that they're going to keep prices artificially high. It's not collusion if the two are actually in business together.

    • You'd have to be at the table to know (Score:5, Insightful)

      by ianscot ( 591483 ) on Friday April 15, 2005 @10:04AM (#12243864)
      What does Amazon have to bring to the table, other than not crushing them like a bug?

      There's risk from either direction. The attempt to squash them like a bug could also fail, yes, and at ruinous expense? We don't know what terms are being discussed, but there would be concessions and benefits on either side. Not that Amazon isn't dealing from a position of some strength, especially because it can play Netflix off against the Blockbuster evil empire.

      Netflix is already facing Blockbuster's recent conversation to their own business model. If I was Netflix negotiating a deal of this sort, I'd be thinking that any sort of Amazon relationship could give me the presence to withstand that. I'd maybe want some sort of mutual benefits situation with respect to DVD sales off of Amazon.

      (And I don't know enough about Netflix's base of customers, except that it includes me, but I'd bet Amazon has a colossally higher visibility for the average consumer. Amazon is on the level of google, with more staying power to boot. Whether Netflix has a lot of customers or not, the question is whether there's a lot of growth left in the market, and whether Amazon's presence would get at it.)

    • Re:Extortion? (Score:4, Insightful)

      by Brian Quinlan ( 252202 ) on Friday April 15, 2005 @10:20AM (#12243976) Homepage
      NetFlix already has a healthy base of customers, and anyone interested in such a service already knows about them. What does Amazon have to bring to the table, other than not crushing them like a bug?

      A stronger brand. Despite what you say, I doubt that most interested comsumers are aware of online DVD rental.

    • Re:Extortion? (Score:3, Insightful)

      by peter_gzowski ( 465076 )
      What does Amazon have to bring to the table, other than not crushing them like a bug?

      How about Netflix integration with Amazon shopping? For every DVD in Amazon's substantial catalogue, a link under "Add to Shopping Cart" that says "Add to Netflix Cart". Maybe a rent-to-own scenario where, if I like a film I rent, I can get a discount on the purchase. There are lots of things both Amazon and Netflix can do to help each other, like Amazon and Toys-R-Us do, or Amazon and HMV do.
    • What does Amazon have to bring to the table, other than not crushing them like a bug?

      A huge selection of videos far better than any NetFlix could possibly offe, called the long tail [wikipedia.org]. This data is from last year [changethis.com]

      He gives an example of the documenteries available:
      typical blockbuster store: 75 (.2%)
      Netflix: 1180 (3%)
      Amazon.com: 17061 (40%)
      Total ever released to US audiences: ~40000

  • I wonder (Score:5, Interesting)

    by Nothing Special ( 700074 ) on Friday April 15, 2005 @09:57AM (#12243822)
    what is the viability of startubg a DVD mail service right now? Are they trying to build a client base for the inevitble switch to streaming, which granted is still a few years off, or just trying to get in and steal a bit of market share while they can. hmm. it reminds me of back in 2001, when i worked for an internet kiosk company. we all knew that wireless tech was hitting the market and that it basically spelled doom for the company, but the higher ups hoped to make as much as they could and (hopefully) sell the company off to a major player before wireless came to fruition...the company was gone within 2 years.

  • Already happening at amazon.co.uk (Score:5, Informative)

    by Richard_at_work ( 517087 ) on Friday April 15, 2005 @09:58AM (#12243829)
    Amazon.co.uk already provide this service, which I think is backed by Lovefilm.com (email me for a double length free trial, 28 days instead of 14), which is basically the top UK online DVD rental site (run by Online Rentals Ltd). Ive been a Lovefilm member for 16 months now, and I dont have a single word of complaint about them - fast service, good rates and a very easy to use site.
    • Problem is, Amazon offer the worst deal of every mail order DVD service currently in the UK.

      9.99 a month for a monthly limit of 6 DVDs.

      Both Blockbuster UK , LoveFilm and 365DVD, all offer a far superior all you can eat package for 14, which at 3 a week, nets you at least 12 films.

      I don't think Amazon's pricing model will work in the UK, there are already too many competitors offering better deals.

    • A quick correction... Lovefilm.com (Online Rentals Ltd) do not operate Amazon.co.uk's DVD rental service. They've grown their own, which is one reason why this revelation is of particular interest to the UK market.

      Lovefilm.com do however operate services for Channel 4, Channel 5, Sainsbury's, WHSmith and Lastminute. Those are the ones I know about anyway, there are almost certainly more. I'd agree with you about the service quality though - and they just won the British Video Association's Home Rental Se

  • Competitive Market (Score:5, Interesting)

    by ChibiLZ ( 697816 ) * <john AT easygoldguide DOT com> on Friday April 15, 2005 @10:01AM (#12243846) Homepage Journal
    I really don't think the market could hold another major competitor, so partnering with Blockbuster or Netflix would be a smart move... Although I heard rumors that Hollywood Video might also be looking at starting an online movie rental business. That might be an ideal partner for Amazon, as both are fresh in the business.

    Also, for a shameless plug, if there are any Netflix users out there, and you think dealing with your queue is a pain, try my new software (Windows), called FlixQueue.
    http://www.5hyphen.com/FlixQueue/index.htm [5hyphen.com]
    • Doesn't like my full name, says it's not valid for a free trial.

      Sean D.
    • Although I heard rumors that Hollywood Video might also be looking at starting an online movie rental business.

      What would be the point of partnering with someone as inexperienced as you are? The only one is to spread financial risk, and Hollywood Video can't afford a lot of risk at this point.

  • Hope they don't get involved with blockbuster UK (Score:4, Funny)

    by intmainvoid ( 109559 ) on Friday April 15, 2005 @10:02AM (#12243851)
    They could learn a lot from blockbuster UK, in a what not to do sense - I always know what DVD is coming next - it's the one from the bottom of my list!

  • I expect a little "buy now" button on Netfix.... (Score:5, Insightful)

    by aengblom ( 123492 ) on Friday April 15, 2005 @10:03AM (#12243853) Homepage
    within six months. It sort of blows me away that it's not already there. Netflix knows the movies I like much better than Amazon. It knows what I've seen, what I've rented twice. If I wanted to browse some movies to buy I'd go to Netflix and search around, before heading over to Amazon to actually place my order.

    I'll bet they'd like a cut of those revenues too.

    • Re:I expect a little "buy now" button on Netfix... (Score:1, Interesting)

      by Anonymous Coward
      Netflix seem to be a more likely partner than Blockbuster from Amazon's viewpoint. They already have a well established customer base and architecture. On the other hand Blockbuster may have a greater interest in tapping into Amazon's online presence and architecture and be willing to offer more for the opportunity. My guess is that Amazon will still end up in a deal with Netflix because it will avoid the risk of another Toyrus situation.
    • There used to be a link to buy the DVD from buy.com on each Netflix movie page. It disappeared a little while ago.
    • An Amazon and $NET_RENTAL_COMPANY alliance has a ton of synergy.


      After all, there's two revenue streams when it comes to DVDs - rental and resale.


      Netflix has an excellent rental model, but a nonexistent resale model.


      Amazon, OTOH, is positioned in the exact opposite.


      This synergy can combine both models' strengths and potentially increase revenue significantly.

    • When Netflix first started, they had a business model where you could rent a single movie, and if you liked it, you could pay the remaining cost of the movie and buy it. It was awesome. I used it all the time.

      So why don't they have this anymore? They made a deal with Amazon that Amazon would get the purchase business and Netflix would get the rental business. That way, they wouldn't compete. So Netflix didn't offer that service anymore. Problem was, Amazon didn't offer it either.

      Not sure what kind o

  • Rent DVDs from Amazon! (Score:3, Funny)

    by Strider_Hiryu ( 875413 ) on Friday April 15, 2005 @10:05AM (#12243873) Journal
    I wonder if I'll be able to rent used DVDs for less than new DVDs...

  • Blockbuster never work it (Score:3, Interesting)

    by drakethegreat ( 832715 ) on Friday April 15, 2005 @10:06AM (#12243876) Homepage
    The article seems to favor blockbustor but I don't think they are ever worth using. They have had way too many lawsuits for bullcrap late fees over the last 10 years! I know its true because its happened to my family and we stopped using them a long time ago. Personally its worth it to pay more whether that be netflix or amazon or the two of them combined.

  • Long Wait (Score:4, Interesting)

    by Ranger ( 1783 ) on Friday April 15, 2005 @10:08AM (#12243898) Homepage
    Amazon should go it alone. I know Amazon UK rents DVD's online but I don't know if it's partnered with anyone. Partnering with Blockbuster would be a bad idea. I currently subscribe to it. I thought I'd give them a try first because if they sucked I could always switch to Netflix. Which is what I'll probably do here soon.

    Over half the movies in my queue are short wait. I have about 40 in it. Yes I can only have 3 out at a time, but there are some movies I've been waiting months for. And Netflix does have a better selection. If Amazon partners with Blockbuster then my movies will all go to long wait.
    • I was a Netfix user who switched to Blockbuster because of the cheaper price. I figured I'd try it out and see how it works. I've been nothing but extremely disappointed with Blockbuster. It now takes about 4 postal days minimum to get to my location. I once waited a 8 days for Alien vs. Predator...yeah I have problems. Netflix took 2 days and never any longer. The $3 I'm saving a month is definitely not worth it and I'm switching back at the end of this month. The one nice feature about Blockbuster

  • Just buy it (Score:4, Interesting)

    by Raindeer ( 104129 ) on Friday April 15, 2005 @10:09AM (#12243899) Homepage Journal
    Netflix would fit quite well with the range of products that Amazon has. Amazon has good relations with its customers already, now it could tie them up with a subscription service. If they do it well, the customer gets referrals to movies they might never have thought of and Amazon might use information on viewing habits to suggest books. If Amazon/Netflix are smart, they will also start video on demand.

  • I've heard of a good rental service.. (Score:4, Funny)

    by Digital Warfare ( 746982 ) on Friday April 15, 2005 @10:09AM (#12243901) Homepage
    ..its called Bit Torrent, and is usually quicker than Blockbuster !

  • Stand firm, Amazon! (Score:5, Insightful)

    by Quiet_Desperation ( 858215 ) on Friday April 15, 2005 @10:12AM (#12243933)
    I'm a Netflix fan, but think Amazon should go it alone for no other reason than I love a price war. :)
    • Absolutely! There's nothing to be gained for the consumer if Amazon sponges off Netflix {and/or} Blockbuster. Amazon should have no trouble doing this on their own.
      • The consumers and Amazon will lose if Amazon doesn't do this through a partnership. By sending out their own DVDs, Amazon ends up owning property in every state. You can figure out what the implications are and I don't have to tell you that consumers hate paying taxes on online goods.
        • IANAL, but I'm fairly certain that laws dealing with a "physical presence" in a state don't apply to someone who owns a DVD that's in that state. I received a DVD from Amazon that was cracked when it arrived. They sent me a replacement before I actually returned the original, with the understanding that the original DVD was their property and I was responsible for returning it to them. Does this mean they had a presence in my state until the package with their DVD in it crossed the state line?
  • This online DVD rental biz is certainly far from saturated. With Amazon's excellent distribution network already established, and their penchance for customer service, I would guess they'd do quite well.

    My hunch about why they're looking to partner is that online DVD rental may turn out to be a business with a fairly short lifespan. Everyone and their mother is coming out with plans to deliver video content on demand via every possible medium, so physical delivery of those oh-so-easily-copied silver disc

  • Simple. rent out pr0n (Score:3, Interesting)

    by British ( 51765 ) <british1500@gmail.com> on Friday April 15, 2005 @10:54AM (#12244279) Homepage Journal
    If Amazon wants to compete like mad in the dvd mail-order rental, start with pr0n. Get a huge library, make some partnerships with adult title companies(for bulk discounts, exclusive deals, whatever), and add that to the regular movie library. Also, don't charge exorbant prices. Treat it like a regular movie, but maybe add a dollar to the rental cost, just cuz you can.

    Well-known retailer + pr0n + no shame of walking out of the adult section with it = 3. profit!
    • I actually completely agree with this. If Netflix (or another company) offered some pornos with their current selection, their profits would explode. And that's not all that would explode, OH YEAH!!!

    • Well-known retailer + pr0n + no shame of walking out of the adult section with it = 3. profit!

      I'm suddenly qeuasy thinking of sticky DVD sleeves. eeeew

  • If someone online, like Amazon, and someone offline, like Blockbuster, got together and provided a truly integrated service it would be much better than the current syystem.

    Imagine a system where you pay your 10 euro a month to rent up to 2 DVDs at a time. Initially you happen to sign up online at Amazon and get your first 2 DVDs sent to you in the post.

    When you finish one of those DVDs you could decide that instead of sending it back in the post, you just pop down to Blockbuster and return it and immedia
  • I'm using Zip.ca [www.zip.ca], a service identical to Netflix (who dosen't deliver into Canada), and the service is really cool. They've got a huge selection of movies - 30,000 or so, I've been able to satisfy my finical tastes - and there's no late fees, something I was having a problem with before. You build up a queue of 20 or so movies you'd like to see, and they mail you what's available from that list. It's kinda cool because you never know what kind of mix you'll get: I got the comedy "I'm gonna git you sucka", a
  • I hope Amazon partners with Netflix. I'd love to be able to add to my queue from an Amazon page, but it would be even better to add to my queue from an IMDb page.
    • I agree, that's a great concept. I'm very netflix loyal -- they've been great about offering pretty obscure titles that i have a hard time finding at video stores around DC. As far as blockbuster is considered, i hope that netflix gives them a run for their buck. especially after that "no late fees" scam that they tried to pull on everyone. I wouldn't be surprised if the bad buzz about them resulting from this little stunt put a serious dent in thier earnings. Its been a fun and interesting road, watc
    • rsadelle, there is a greasemonkey [mozdev.org] script that will add Neflix links to IMDb pages.

  • As a Netflix shareholder....what each gets.... (Score:4, Insightful)

    by PortHaven ( 242123 ) on Friday April 15, 2005 @12:46PM (#12245628) Homepage
    Netflix isn't dying...it's in fact the market leader. But it's got some potential competitors who are traditionally "killer competition"

    WalMart - kills competitors in markets it enters

    Blockbuster - killed off most of the mom & pop rental stores

    Amazon - is the dotcom that survived the dot boom/bust

    Netflix - is the company that came up with a new business model and grew

    However, investor/industry analysts are nervous about it because they don't know if it has staying power. There is strong potential competition (which Netflix has more than held it's own against). And there is the upcoming (for certain eventually just unknown time of arrival) of download on demand.

    What Netflix has going for it in the industry.
    - established
    - market dominance
    - market presence
    - best interface

    So what does Amazon get and offer Netflix. Amazon will save hundreds of millions of dollars. It will also become an "umbrella" of sorts to the investor community who will see an Amazonian partnership as a assurety of long-term livability for Netflix. And guarantee a mutually beneficial symbiotic advertising relationship. Got to Netflix from Amazon, and from Amazon to Netflix.

    - The Saj
  • I've been using Netflix for about a year and a half now. I get anywhere from 10 to 16 movies a week with its 8 movies at a time deal.

    Maybe I'm just lucky, but I get a three-day turn around on movies. E.g., if I mail them back on Monday, it'll get them Tuesday and mail back the same day, which means I'll get the new ones on Wednesday.

    Contrast that to the god-awful experience I had with Blockbuster. It would take about 9 days to get a movie and the same going back. In fact, TWO MONTHS after quitting, th
  • What else could Amazon have in mind? Amazon has a large distribution system, but's more centralized than Netflix's. What if Amazon wants to stage popular books at Netflix facilities to get quicker shipping? What if Amazon wants to rent books or CDs (ending up in a court battle)?
  • Blockbuster seem to have issues with many titles out of stock, whilst I am not getting this issue from Netflix. Hard to say who carries more as I find hard to find titles on either site (Netflix recently added The DamBusters and The Cruel Sea, which is very hard to get and not listed on Blockbuster, but there are some titles on Blockbuster that Netflix do not have).

    Oh and lastly, I see that Blockbuster can be slow with shipping and receiving these DVD's, maybe they will get better with time?
  • Now Apple only has to partner with or acquire one company to turn themselves into one hell of a media provider. :)

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