Tuesday, March 27, 2007
Dinosaurs - Movie Rental Stores
The traditional video rental store will most likely cease to exist in the future. It won't be tomorrow or maybe not even five years from now, but in the not so distant future. Many people still prefer to visit the store and pick out a movie, but fewer and fewer are doing this. As services like Netflix continue to grow, companies like Blockbuster attempt to adjust their business model to meet the challenge. They have an online rental service that is augmented by instore pickup. The relative success of that model is due mostly to the artifacts of the previous generation. People still like to be able to go into a store if they want to. As media delivery goes digital, quality improves, and more titles are consolidated into single delivery services, people will be less likely to make that trip to the video store. There are fewer and fewer video stores to be found and eventually, there will be none. In my neighborhood alone I have watched two or three local video stores close. Chains like Blockbuster are able to keep their losing storefronts open because they are part of the business model and are supported by the online business. It is only a matter of time before the traditional video rental store ceases to exist altogether.