NetFlix.com, here, and Amazon.com, Seattle, have entered into a marketing agreement whereby NetFlix.com will focus on DVD rentals, while directing DVD sell-through customers to Amazon.com. In turn, Amazon.com will offer customers promotions for DVD rentals at NetFlix.
"NetFlix.com has chosen to concentrate all our energies on our core rental customers, who have made NetFlix.com the world's largest on-line DVD rental store in seven short months," said Marc B. Randolph, president of NetFlix.com. "At the same time, Amazon.com's reputation for tremendous selection and first-class customer service makes them the ideal partner to handle the sales of DVD movies to our customers," he said.
"The launch of our new video store has vastly increased our DVD selection and content," said Ram Shriram, vice president for business development at Amazon.com. Amazon.com launched its video sales Nov. 17 and now offers more than 2,300 DVD titles at prices discounted up to 30% off.
PORTLAND, Ore. -- Rentrak Corp. here will process rental and used-tape sales data for Blockbuster Entertainment, Dallas, for a second studio, the company said, declining to identify the studio. The studio also has retained Rentrak, a shared-transaction fee distributor, to audit the Blockbuster data.
"The agreement ensures faster processing at lower costs than would be possible if the studio had to develop systems of its own to obtain and audit the data," said Ron Berger, chairman and chief executive officer of Rentrak. "Processing and auditing videocassette revenue-sharing data for studios provides a valuable service and profitably augments our core videocassette distribution business," he added.
This chart, tailored for the supermarket video market, is based on information taken from more than 1,000 supermarket rental locations serviced by Ingram Entertainment, La Vergne, Tenn.