Online DVD rental (ODR) |
Subscription services whereby customers pay a fixed monthly fee which entitles them to receive through the post DVDs which they have selected online in advance from a wide range of titles. Once the customer has watched a DVD, he/she posts the DVD back to the ODR supplier in a prepaid envelope whereupon the ODR supplier sends the next available DVD on the customer's list. Customers have no time limits imposed within which they must return the DVD and, accordingly, no late fees are incurred. |
Home consumption Home delivery of the movie Absence of time limit to return the DVD Flexibility to watch the movie according to consumer's own availability |
Movies back catalog Logistic capabilities Technology capabilities (online user interface) Competence on customer acquisition and retention (brand) |
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Brick and mortar rental (traditional DVD rental channel) |
Customers pay a set fee per disk to rent a DVD for a night and/or a slightly higher fee for renting for a longer period. Individual brick and mortar stores traditionally do not offer a back catalog (i.e., DVDs that are not recent releases) on the scale of ODR providers. |
Home consumption Flexibility to watch the movie according to consumer's own availability |
Shop location Competence on customer acquisition and retention (brand) |
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DVD retail |
Consumers can purchase DVDs from a number of alternative retail channels. Despite recent price reductions in DVD retail, permanent purchases are still substantially more expensive on a per-unit basis than ODR and other rentals but have the benefit of permanent access to the content. |
Home consumption Home delivery of the movie (online purchase) No return and full use flexibility |
Movie back catalog Logistic and technology capabilities (online purchase) |
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Pay per view (PPV) |
Dedicated television channels show films at scheduled intervals that consumers can pay for in addition to the television subscription packages of which PPV channels are a part. With PPV the film is shown at the same time to everyone ordering it. Traditionally the number of films available at any given time is small compared to ODR, and access is on a one-off basis but has the advantage of convenience inasmuch as consumers do not need actively to search and select titles in the way required by ODR or brick and mortar rental. |
Home consumption Home delivery of the movie Reduction in searching and selecting costs |
Technology capabilities (online user interface) Distribution cost is minimal (using an existing channel). |
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Specialist film channels |
Consumers can subscribe to basic and premium channel packages from cable operators, satellite providers, and telephone companies using cable or IPTV, and other multi-channel distributors through monthly subscription packages. Choice is relatively limited and titles are usually available to consumers later than they are available to buy or rent but, like PPV, specialist film channels have convenience advantages. |
Home consumption Home delivery of the movie Reduction in searching and selecting costs |
Distribution cost is minimal (using an existing channel). |
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Video on demand (VOD) |
VOD operates through a computer server and enables viewers to access content at any time from a pre-determined list of films and TV programs. Unlike PPV, VOD allows consumers to watch a film/TV program at an individual time of their choosing. Choice of back catalog with VOD may be significantly restricted by comparison to ODR but titles can be purchased on a one-off basis rather than by subscription only. |
Home consumption Flexibility to watch the movie according to consumer's own availability |
Technology capabilities (online user interface) |
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Free to air TV |
Given free to air TV does not require subscription or incremental payment above the cost of the Freeview box, there is no incremental cost for viewing the content but choice is relatively limited and titles are usually available to consumers later than they are available to buy or rent. |
Home consumption Low cost |
Distribution cost is minimal (using an existing channel). |
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Internet download |
Consumers can gain access to films on their computers via the internet. Once rented, customers typically have 24 h to view the programs/films. |
Home consumption Home delivery of the movie Use flexibility |
Technology capabilities (online user interface) |