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Thursday, May 1, 2008

Another Blow To The Video Rental Store Model

In January Apple turned on movie rentals from within it's iTunes store. Today the service has gotten a little better with an announcement that new movie titles will be released for rental or purchase on the same day as their DVD release. Previously the service had to wait 30 days after the DVD release date to add a title to its catalog. This can be seen as a big blow to traditional retailers as it removes one of the big advantages that brick-and-mortar retailers like Blockbuster had on the online downloading alternative. As ars technica puts it "...customers get new titles on the spur of the moment without having to leave the house." With competition from the likes of Apple and Netflix, it's not looking great for the likes of Blockbuster, Rogers, Jumbo Video , or insert your neighborhood video retailer here.

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