Should you worry about DVD rental business problems?
A confession: this is not an entirely idle question.
Blockbuster, perhaps the world's most famous DVD rental company, recently filed for bankruptcy protection in the United States throwing different customers around the world into a panic.
In the UK and in Australia the company's demise was reported in the media, for example, despite the fact that both are separate businesses to some extent and aren't directly affected by the business problems of the parent.
Other DVD rental companies have gone through similar large problems in their business but should they affect the DVD rental provider that consumers decide to go with?
Not according to several divisions of the Blockbuster brand.
For example, in the UK Blockbuster stressed that it's still in profits, generating money for the company and has good net assets so that its customers shouldn't be worried.
This is always the response of a company under financial strain, though, and one looking to inspire continued consumer confidence too as well as the confidence of investors.
In reality, while the two companies are legally separate sometimes even in that situation a sale can be possible and that would have knock on effects.
When it comes to looking at a business you are thinking of joining, however, there are more salient points that can help you make a decision: the products. In that case, that means the DVD rental service that is available.
In some cases some customers may feel that the rot has already set in when there are issues.
For example, if the company doesn't do DVD rental free trials any longer or the time between the DVDs being ordered and arriving has become slower.
These can be seen with the help of independent reviews of DVD rental companies.
However, there is the possibility that the business will diversify or establish new relationships in order to remain profitable and continue to appeal to core consumers as well as a wider consumer base.
In the past, companies have tried selling TVs in a few stores or increasing their stock of electronics to include mobile phones and DVD players.
Under pressure, DVD rental companies could also choose to specialise in blu ray rentals to appeal to a more technologically forward consumer base.
In all, though, DVD rental customers are in a much better position than those consumers who are tied into long contracts for services such as mobile phone contracts, broadband deals or financial products.
Any DVD rental deal can be cancelled within one month and this means that if consumers do have problems they can get out and away before losing much cash on a service that doesn't work.
Should you worry about DVD rental business problems?
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