partygirluk
03-29-2005, 11:43 AM
Has anyone got experience with it. I was looking at it from amazon.co.uk and their blurb was here (http://www.amazon.co.uk/gp/subs/rentals/help/learn-more-popup.html/026-4480720-2822068) . I was wondering about a couple of things
i) Have you any experience with online DVD rental, and if so how was it for you?
ii) How do amazon make money on this. £10 for 6 titles. They provide postage to you, and return postage. So you pay £1.66 to rent each title, and it costs more than this to post a DVD first class (is about £1 each way). Well, presumably Amazon get a pretty massive discount from royal mail, but even so I can not imagine that their margins are particularly high. They also need to pay costs of staff, storage space, electricity, advertising, setting up and maintaining the computer system, dealing with enquiries, buying the DVDs, replacing broken ones etc. I'm guessing that they thus rely on people not taking up their full allocation of rentals per month, and the extra business revenue it generates.
i) Have you any experience with online DVD rental, and if so how was it for you?
ii) How do amazon make money on this. £10 for 6 titles. They provide postage to you, and return postage. So you pay £1.66 to rent each title, and it costs more than this to post a DVD first class (is about £1 each way). Well, presumably Amazon get a pretty massive discount from royal mail, but even so I can not imagine that their margins are particularly high. They also need to pay costs of staff, storage space, electricity, advertising, setting up and maintaining the computer system, dealing with enquiries, buying the DVDs, replacing broken ones etc. I'm guessing that they thus rely on people not taking up their full allocation of rentals per month, and the extra business revenue it generates.