Red Envelope Madness!

Friday, January 07, 2005

Status report on Amazon.com

A reader recently asked the question of me, what's up with Amazon.com? When will they enter the online DVD rental market? Here's my reply. Amazon has never confirmed its intentions to enter the American market, but their UK division has a very limited online DVD rental plan available to UK residents only. That plan allows subscribers to have only two or three at a time, but with monthly limits of four or six per month. They have no late fees or due dates, and postage is free. Based on that plan, I'd say they are using the UK market to experiment with re-designing their business model from the ground up, rather than cloning Netflix's. There's alot of speculation going around, especially on investment sites like Motley Fool, regarding what Amazon will do, but no one knows anything right now. I'll post it for sure, as soon as I have anything.

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