Here's the WSJ Article with GZFX mention
Rating Movie-Rental Services
We Try Four Subscriptions
And a Store Membership;
Still Waiting for Truffaut
By TIM EATON
March 16, 2006; Page D3
There are now so many ways to avoid the video store, it's amazing anyone goes.
You can have movies on DVD sent by mail from an online subscription service, use your remote to get video-on-demand from a cable operator -- and now try the latest option, a service called MovieBeam that wirelessly sends available movies to an electronic box in your home. Next on the horizon is downloading movies off the Internet for home viewing.
The wide number of choices shows that the movie-rental business is thriving, even as the number of video-store locations is shrinking. Since August 2004, online mail-order subscription services Netflix and Blockbuster Online have added a total of 3.2 million net new subscribers, according to Derek Brown, an consumer-services analyst at Pacific Growth Equities.
The rapid changes have presented new challenges for movie-rental companies as they compete for customers. To find out what this fierce competition means for consumers, we signed up for four services -- Netflix, Blockbuster Online, DVD Avenue and QwikFliks. And we also tested the old-fashioned approach at our local Hollywood Video store.
The first four companies each charged a flat monthly fee and offered unlimited rentals. We chose comparable plans for two movies at a time for about $15 a month. At Hollywood Video, we signed up for a free membership and five-day rentals, at a rate of $3.99 for new releases and $2.49 for older films. To test the range of service, we attempted to rent a popular movie, "Wedding Crashers," and an obscure film, Francois Truffaut's "Shoot the Piano Player," from each.
During the four-week period of this test, most of the companies delivered as promised. Netflix and Blockbuster Online, a unit of Blockbuster Video, maintained shipping centers nearby, making the companies a day or two quicker than the smaller outlets. Overall, the bigger companies -- particularly Netflix -- outperformed the smaller ones, both in terms of speed of delivery and selection of titles. Also, Blockbuster stands out because it blends its online and neighborhood stores, with free in-store rental coupons that allow a customer to pick up a movie on a whim without waiting for the mailman.
That's not to say the bigger companies win on every count. When we tried to contact their customer-service departments, we were shuffled into the "frequently asked questions" sections. But DVD Avenue provided quick response to emailed questions, and offered lighthearted advice on the DVD sleeves such as "never wear the DVD as a fashion accessory." At QwikFliks, each customer is assigned to a customer-service representative. And we found it nicer to walk the aisles at the neighborhood Hollywood Video than clicking though Web pages. Also, customers who don't rent a lot of videos could save money by not committing to monthly fees from online services.
Hollywood Video had both movies -- it just took a 10-minute drive to get them. With online services, of course, we had to wait on the Postal Service.
The first DVDs to arrive by mail came from Netflix, which arrived in two days. It was the only one to get it right on the first try.
Blockbuster Online's "Wedding Crashers" showed up the following day, but a month after signing up, still no Truffaut. "It was either being rented by another customer or outside of the area," says Shane Evangelist, senior vice president and general manager at Blockbuster Online.
Titles from DVD Avenue arrived the same day as Blockbuster and included the French film, but we're still waiting on "Wedding Crashers." Chip Gallent, president, GameZnFlix Inc., which recently bought DVD Avenue, says smaller businesses, like DVD Avenue, sometimes wait for popular movies to appear on the used market before buying them.
The last company to get DVDs to us was QwikFliks. The company doesn't stock the French film and it has yet to send "Wedding Crashers," but we got other choices in three days. Calls to the company went unanswered, but the Web site says customers in Southern California would get DVDs the fastest, while Easterners and Midwesterners could wait up to six days.
STORE PRICE AS TESTED FORMATS SPEED COMMENT
Netflix $14.99 for two videos at a time, unlimited rental DVD Both of our movie picks arrived within two days. Generally, a new DVD arrived two days after the previous one was returned. Distribution centers around the U.S. allow for quick turnaround for most customers. Slower response to emailed questions than the smaller shops. We received an immediate auto-response and a personal emailed response within 24 hours.
Blockbuster $14.99 for two videos at a time, unlimited rental DVD Our Hollywood movie came within two days, but we're still waiting for the foreign film. Blockbuster has several distribution centers around the country, but it also ships from stores. But what separated Blockbuster from its rivals is the way it blends its online and neighborhood stores. What's great about that is a customer gets on free rental a month at the neighborhood store.
DVD Avenue $14.99 for two videos at a time, unlimited rental* DVD The foreign film arrived within two days, but the Hollywood film still hasn't arrived. The founder of the company taking over DVD Avenue promised quicker service when they merge. We laughed at the envelope in which the DVDs arrived. It offered do's and don'ts, such as "Always keep DVDs in the sleeves" and "never wear the DVD as a fashion accessory" and never "rent Gigli." Quick response to emailed questions.
QwikFliks $15.99 for two videos at a time, unlimited rental DVD We didn't get either one of our original picks, but it sent other choices in three days. Excellent customer service via email. Each customer is assigned customer-service representative to help with whatever is needed. The rep was helpful and friendly.
Hollywood Video New release for $3.99 plus tax; older videos for $2.49 plus tax. DVD and VHS The speed of getting new DVDs depends on your driving habits and decisiveness while browsing the racks. It was easier to walk the aisles and browse titles than clicking though pages on a Web site. Also, customers who don't rent a lot of videos could save money by not committing to monthly fees from online rental services. Late fees were a problem.
*DVD Avenue was recently acquired by another company, and it will soon be rolled into the GameZnFlix, which will rent DVDs and/or video games for $16.99 a month for three movies and/or games, or $12.99 a month for three movies and/or games.
