DVDNOW will enter the US$10bn DVD rental market. This is a mature market, recently revolutionised by www.netflix.com (US$600m revenue) and copycat businesses based on web subscriptions for mail-delivery DVDs. DVDNOW has identified a significant weakness in the Netflix et al. business model, which can be exploited at relatively low cost, using existing technologies coupled in a novel way. This allows a substantial expansion on the Netflix model market size, while further eroding the core of the bricks-and-mortar DVD rental market. In a global market where clone companies are competing simply on cost, DVDNOW confers a considerable competitive advantage.

Shamus Husheer
Enej Kuscer