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DVD Wave opens DVD rental area on website
Electronic News, Jan 11, 1999
Las Vegas--If Digital Video Express (Divx) didn't have enough problems, a new on-line company last week at the Consumer Electronics Show here unveiled a similar system that competes directly against it.
San Francisco-based DVD Wave has opened the DVD Rental Area on its Web site, an Internet store for people who wish to rent digital versatile disc (DVD) movies. The DVD Wave Internet store claims to offer virtually all DVD titles for either purchase or rental with the added convenience of ordering via the Internet without having to leave the home.
DVD Wave contributes to the woes of Divx, which has already earned the scorn of much of the consumer electronics industry and so-far has encountered a cold reception in the market.
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Divx offers an alternative to conventional DVD, by renting movies to consumers for a 48-hour viewing period at a price of $4.50. Once the 48-hour period is over, the Divx encryption scheme prevents consumers from viewing the movie again. The movie can then be either thrown away or it can be kept and then viewed again if an additional fee is paid.
DVD Wave offers similar rental methods. Under DVD Wave's scheme, the company ships the DVDs off to consumers within two to three days after they have ordered it on-line. The rental can then be kept by consumers for a period up to seven days. After the seven-day viewing period is over, the consumer mails back the DVD in a pre-paid, pre-addressed package that DVD Wave provides.
The movies are also priced competitively with Divx. DVD Wave movies are priced at $4 each for seven days and a consumer can receive additional titles in the same order for $3 each.
The main problem that DVD Wave faces is the availability factor. Most consumers who rent videos want that video immediately and are not willing to wait two to three days for it. However, the on-line convenience of never having to leave the house to rent or take back the movies bestows some advantages on DVD Wave's approach.
Another problem for DVD Wave will be increased competition from other on-line vendors. These competitors include high-profile companies such as book, music and video seller Amazon.com and video vendor Reel.com, which recently was acquired by the country's second largest video rental chain, Hollywood Video.
The DVD Wave site is located at http://www.dvdwave.com.
COPYRIGHT 1999 Reed Business Information, Inc. (US)
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