Tuesday, December 14, 2004

Speedy delivery

The following is not a paid endorsement, but I'd be more than happy to take any money they'd like to throw my way.

Unless you want to rent DVDS that are out of print/non-region 1/very obscure, Columbus residents have no reason whatsoever to continue going to the video store. A couple weeks ago I mentioned my satisfaction with Netflix. Since then Netflix has made an improvement that can't be beat: two day turnaround time. It now takes one day for my returned DVD to get to the company and another day for me to get the next DVD in my queue. Yesterday Netflix received THE GLASS SHIELD from me and sent out Howard Hughes' HELL'S ANGELS, which arrived in my mailbox today. This is happening during the holidays, which traditionally produces the most volume at the post office.

The new Dayton hub is likely the reason for the quick turnaround. Who knows why Columbus doesn't have a distribution center, but if Dayton can handle DVD returns this quickly, it wouldn't make any difference. Two day turnaround--return a DVD Wednesday, have a replacement Friday--is the kind of magic number that will keep the company competitive as other big guns enter the fray. (There have been rumors that Amazon is going to roll out a DVD rental program. The company's infrastructure, with distribution centers across the country, should make them a prime player if they choose to challenge Netflix.)

OK, Netflix doesn't make sense for those people who don't rent much or those content to utilize free library checkouts; however, if you rent a lot, Netflix's turnaround window has shrunk to the point where it can't be ignored.

1 comment:

  1. Have you seen this: http://www.suntimes.com/output/business/blockbuster14.html

    Blockbuster thinks this is going to fool people into thinking that they are erasing a key advantage of Netflix. It's so ridiculous. Unless BB partners with some radical new technology that allows you to download movies onto flash card or onto your personal media player or something like this, it's going away within 5 or so years, it's just that simple...