Wednesday, October 27, 2004 10:59:39 AM
Wick,
While the results of my extensive market surveys have not come back yet, my understanding of rationality tells me the following:
1) People do not know how many movies/games they rent annually - there has never been a need for this information. I sincerely doubt that anything but a small percentage of people would SAY (not actually) they rent more than 2-3 videos/games per month. Therefore people might view this deal as excessive and more expensive than the video store - with poorer selection and service.
2) People who lock themselves into a $222 payment for video rentals at the beginning of the year are generally middle class or higher. These regular folk are demanding - they want to watch the newest movies when they want to watch them. These are the same people who pay $15 to go to a new movie ($50+ for a family of 4). If they are willing to pay $50+ to see a new movie in theatres because they want to see it, they won't be satisfied with not being able to see new releases when they want to see them - even if they are saving a few dollars. Because new releases are somewhat difficult to get from GZFX, people have to request older movies - who can think of 72 movies they a) want to watch and b) are available for watching?
While the results of my extensive market surveys have not come back yet, my understanding of rationality tells me the following:
1) People do not know how many movies/games they rent annually - there has never been a need for this information. I sincerely doubt that anything but a small percentage of people would SAY (not actually) they rent more than 2-3 videos/games per month. Therefore people might view this deal as excessive and more expensive than the video store - with poorer selection and service.
2) People who lock themselves into a $222 payment for video rentals at the beginning of the year are generally middle class or higher. These regular folk are demanding - they want to watch the newest movies when they want to watch them. These are the same people who pay $15 to go to a new movie ($50+ for a family of 4). If they are willing to pay $50+ to see a new movie in theatres because they want to see it, they won't be satisfied with not being able to see new releases when they want to see them - even if they are saving a few dollars. Because new releases are somewhat difficult to get from GZFX, people have to request older movies - who can think of 72 movies they a) want to watch and b) are available for watching?
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