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Online Video Rental


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Online Video Rental

  1. 1. By:-<br />AdityaKulkarni(09BM8004)<br />ArchitMehrotra(09BM8012)<br />Col Gurtej Gill(09BM8020)<br />Mohd.Mudasser(09BM8024)<br />Online Video Rental<br />
  2. 2. Some Web 2.0 facts<br />Google search stats:<br />1,000,000,000,000 (one trillion) - approximate number of unique URLs in Google’s index <br />2,000,000,000 (two billion) – very rough number of Google searches daily <br />$110,000,000 – approximately amount of money lost by Google annually due to the “I’m Feeling Lucky” button<br />
  3. 3. Wikipedia stats <br />2,695,205 - the number of articles in English on Wikipedia<br />684,000,000 – the number of visitors to Wikipedia in the last year<br />75,000 - the number of active contributors to Wikipedia<br />YouTube stats <br />70,000,000 – number of total videos on YouTube  (March 2008)<br />200,000 – number of video publishers on YouTube (March 2008)<br />100,000,000 – number of YouTube videos viewed per day<br />
  4. 4. Online Video Rental<br />Services allow a person to rent DVDs,Blu-rarDiscs,HD DVDs and VCDs among other film media online<br />Delivery through mail<br />All communication between rental and renter takes place on the company website<br />Advantages:-<br />Convenience<br />Hassle-free<br />Variety<br />Price cheaper and no concept of late fees<br />
  5. 5. How it works<br />Most companies operate on the following model:<br />The customer joins the rental service creates a list of titles they wish to watch.<br />Titles from the list are mailed to the customer.<br />The customer watches the films and then sends them back to the rental company.<br />Most companies let customers keep DVDs for as long as they want. <br />Commonly, one disc is returned, other is sent out.<br />Membership usually billed monthly and includes postage both ways.<br />
  6. 6. Types of plans<br />"Unlimited" <br />"Limited", "capped", "monthly maximum" <br />"Package" <br />"Individual Rentals", "pay-as-you-go" <br />"Peer to Peer Trading" <br />"Season Rental", "Series Rental" <br />Rentals Online easier with technology :-<br />Online video streaming.<br />Movie download<br />
  7. 7. MAJOR PLAYERS<br />
  8. 8. NETFLIX<br />
  9. 9. Netflix History<br />Founded in 1997 by by Marc Randolph and Reed Hastings<br />Personalized Video Recommendation System<br />IPO on May 29, 2002<br />Worker Oriented Culture<br />Netflix in European Markets<br />September, 2004 Consumer Class Action Lawsuit (Throttling)<br />In January 2005, Netflix changed its terms of use to accommodate throttling<br />
  10. 10. Services Offered<br />Disc rental<br />Netflix's most popular plan cost US $16.99 (plus tax) per month<br />Internet streaming<br />Virtually all subscribers are entitled to unlimited Internet Streaming<br />Profiles<br />One Subscriber Account but multiple users<br />
  11. 11. Netflix’s competitive advantages and disadvantages relative to Blockbuster<br />Netflix’s competitive advantages<br />No due dates or late fees, <br />No waiting in line at store, <br />Its titles are rarely out of stock,<br />Its customers do not have to return videos in store.<br /> Netflix also has an excellent Internet site and an existing Web-based logistics infrastructure.<br />Netflix’s competitive disadvantages<br />Lack of immediacy (customers have to wait to receive DVDs), <br />Customers cannot ask knowledgeable sales clerks for information on substitute DVDs or purchase new and used DVDs. <br />Blockbuster also has potential synergies due to its operating a Web site as well as stores.<br />
  12. 12. Netflix’s competitive advantages and disadvantages relative to Amazon<br />Netflix’s competitive advantages <br />an Internet site that is devoted to DVD rentals, and a long-term commitment to DVD rentals.<br />Netflix’s competitive disadvantages<br />A smaller customer base, <br />A smaller logistics infrastructure. <br /> has considerable experience as a Web-based retailer.<br />
  13. 13. Market Scenario<br />The DVD rental by mail industry was pioneered by the US company Netflix, launched in 1999. In India, online rentals have only really taken off since 2005, and even now, not many people have heard of them.<br />Unlike the West where DVDs are sent through the postal system, in India nearly all providers rely on courier services. There are three main reasons online rental penetration lags the West—<br />Internet penetration is lower<br />Low price (and quality) pirated copies are common<br />Most consumers are still reluctant to make online payments, though this is changing in the cities and will continue to spread. <br />Current Indian subscribers are mainly the affluent, nonetheless, the room for growth is astounding--The home video market in India — largely the rental market — was estimated to be about Rs 4 billion in 2005. Over the past two years, it has grown by about 15-18 per cent per year. It is expected to grow to about 14 per cent by 2010. <br />
  14. 14. India has approximately 15 million DVD players and this figure is expected to touch 70 million by 2010, which translates into a vastly untapped video rental market.<br />This explosion in Indian online rentals will probably pick up for several years to come, as the service goes mainstream. <br />Given the courier-based nature of Indian DVD rental, most companies only serve certain metropolitan areas (see our rankings for Delhi, Mumbai, and Bangalore services where there is plenty of competition) and there is yet to be a truly large-scale, nationwide service.<br />
  15. 15. Competition<br />Clixflix DVD Rental (First Mover) <br />Technically advanced, family-run site serving Mumbai area in tandem with seven stores; cheap prices, but unfortunately late fees are a concern <br />Seventymm DVD Rental <br /> India's largest DVD rental service and in our opinion, the best; excellent site design and expanding fast<br />Movie Mart DVD Rental <br />One of the best online DVD rental service, boasting excellent site features and prices.<br />Bigflix DVD Rental <br /> Large, modern, well-funded service with great promise if it expands.<br />Source<br />
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  18. 18. To Conclude…<br />Better logistical framework<br />Tapping of social networking sites to gather viewer data and trends<br />Creating awareness to reduce piracy<br />Encouraging customers to rent rather than buy<br />Tie-ups with retail chains and corporates<br />
  19. 19. Thank You<br />