Monday, September 17, 2007

Apple moving into video rentals?

Rumor has it that a meddling user stumbled across some interesting help pages in the iTunes support site. They found links for "wrong video rental received" and other things that implied that Apple (AAPL) may be planning to enter the video rental market. Similar to book retailers, which got gutted by online vendors such as Amazon (AMZN), video rentals which used to be delivered by throngs of mom-and-pop corner shops that are now being threatened by a few online giants:
  • NetFlix (NFLX) - The inventor of the concept of mail-in DVD rentals now has everyone after them. Their only hope to achieve dominance is to build their national brand-name outside of their comfort zones (local city market such as the Bay Area) and add subscribers.
  • Blockbuster (BBI) - Trying to leverage their bricks-and-mortar strength to add value to and steal away the NetFlix business model.

1 comment:

Bustopher said...

i hope that doesn't threaten NFLX. Their stock is doing poorly enough already.