Online movie rentals dampen retail business - Montgomery Advertiser- BuildingWebsiteNews

Family movie night no longer requires a trip to the corner rental outlet, and that means trouble for movie rental chains. National chains Movie Gallery and Blockbuster have lost market share to online outfits such as Netflix, leading Blockbuster to compete for its own share of the online business. But even the online delivery companies are facing a threat from downloadable movies and online viewing. It works much the way the Netflix plans do, but allows customers to return movies to the Blockbuster store, and some plans allow a customer to pick up another movie at the store when an online rental is returned. He didn't name the company he was talking about, but Movie Gallery completed its purchase of Hollywood Video just as the online battle between Blockbuster and Netflix was getting hot. Some retail movie rental outlets have faced falling profits due to the growth of online outfits such as Netflix and the rise in downloadable movies and online viewing. read more

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