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For when your thoughts are drifting to things not so movie, or if you're feeling trivially inclined.
591

Is Amazon getting into the game?
Topic by: EWilson
Posted: August 9, 2005 - 9:22 AM PDT
Last Reply: August 9, 2005 - 2:12 PM PDT

author topic: Is Amazon getting into the game?
EWilson
post #1  on August 9, 2005 - 9:22 AM PDT  
Apparently so, according to Wired.com:

Amazon Eyes DVD Rentals

Granted this isn't an official announcement, but the indicators are there. They've already started into the DVD rental business in the UK and Germany, so it wouldn't be a surprise to see them get into it here.

The best quote I've seen on this story (shamelessly ripped from Slashdot!):

"Amazon has the clear advantage here [in comparison to Netflix]. They already operate distribution centers in several locations around the US, have experience in inventory management and quick shipping, and can even rent videos at a slight loss for a while, using it to drive business to the rest of their operations."

And I couldn't agree more. This is WAY more serious for Netflix than when Wal-mart got into DVD rentals - Amazon has the infrastructure all ready in place to do everything, and can afford to take an initial loss to build up its business. With Netflix still not turning a profit, how long can they go against this kind of competition before they run out of gas?

Now, how does this affect Greencine? I think it will be the same as when Wal-Mart joined - not a bit. The folks who come and stay with Greencine aren't the ones who are looking for a mass-market DVD renter - they want a niche DVD renter who can provide quality customer service and quality discs. But that's just me - what do you all think about it?
NarcTed
post #2  on August 9, 2005 - 2:12 PM PDT  
Competition is always a threat, but I agree. I don't think I would contemplate leaving Greencine is Amazon entered the market. Yes, Amazon is a more serious threat since they have a successful system in place in Europe.

Netflix did post a $5.7 million income 2nd quarter this year. Seems like they are bouncing back. They were losing money last year when Blockbuster initially entered the market.

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