A male friend of mine has certain feelings about women and permanent relationships, such as marriage. He reveals this when talking about a woman named Esmeralda in Las Vegas -- and her specific
legal business. "I don't own," he says. "I rent."
I didn't ask for further details -- or about any other above-board commerce in Nevada. But I get it. Some people don't want to be stuck
with the same old, same old. Others think long-term relationships have long-term value -- like those who are still buying DVDs.
Movie studios may have to change their thinking when it comes to
renting versus buying. The declining DVD sales industry, which has recently given executives many restless nights, has elicited one bit of silver lining: a higher rate of DVR rentals.
It's not just current movie titles, but those pricey multi-box sets of the TV shows "The Sopranos," "Angel," "Frazier" and "Everybody Loves Raymond," that are caught in the cross-hairs.
The cheap rental fees of Netflix and Redbox are fueling the boom. Redbox, for example,
charges $1 a movie.
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If you have any doubt about this, look at 2008 fourth quarter earning results. Netflix was one of a few media companies to see revenues and profits climb -- right in
the middle of a bad recession.
For those thinking about changing to a pay model for the likes of
Hulu.com -- and all those mis-named "TV Everywhere" initiatives -- this is good news. U.S. consumers are thinking about paying fees for their entertainment.
But the price model may be much
smaller that some might think. Would you pay a quarter to see "Chuck" on NBC? How about 30 cents to see CBS' "The Mentalist"?
Paying for TV online -- if it comes to it -- could surprise
some folks. Maybe buying Jay Leno for a nickel might be an accurate value.
Consumers will certainly pay -- but at a discounted level comparable to what NBC will pay for a 10 p.m. drama in
a couple of years.