Thursday, June 23, 2005

Canadian Video store wants a bite of the Netflix pie

Videomoviehouse.com Challenges Netflix and Blockbuster for a Share of the $6 Billion Dollar DVD Rental Market:
VANCOUVER, Wash.--(BUSINESS WIRE)--June 22, 2005--Videomoviehouse.com Inc. (PINK SHEETS:VMHVF) is now the latest player in the estimated annual $6 billion dollar DVD rental market. Today it is announcing the launch of its new on-line DVD rental site into the North American marketplace. Through its website www.videomoviehouse.com, U.S. customers will now be able to rent as many DVDs as they can watch for a flat monthly fee of $17.99 per month without having to worry about paying late fees. Canadian customers will also be able to rent movies from the same website. Recent industry events, such as the end to the online DVD pricing war, have created an opportunity for company to launch its rental site directly into both the U.S. and Canadian markets.

Videomoviehouse.com is no stranger to the movie industry. It has been selling movies online worldwide through its website www.videomoviehouse.com since June, 2001. Its existing data base of over 200,000 customers represents a solid launching pad from which it will commence its rental operations. By offering a truly one stop shopping experience, the online customer will have the option to either buy or rent a DVD at anytime. With both options together on one site, the company expects to see increased traffic and sales in both divisions.

Last quarter, the company recorded its first ever operating profit and is projecting gross sales in excess of $3,500,000 for the fiscal year ending June 30th, 2005. This represents an increase of 250% compared to the previous year and sales are continuing to grow rapidly.

Industry figures show DVD sales in North America totalled a record $15.5 billion dollars in 2004 and According to Gene Walton of New York-based Walton Holdings, "The DVD rental business is a $6 billion business annually while online rentals currently capture only 10% of the market." VMHVF believes there is ample opportunity for a profitable, low-cost, online provider to capture a significant share of both markets.

Certain information and statements included in this release constitute forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act.

ON BEHALF OF THE BOARD OF DIRECTORS
S. Gaspar, President & CEO
They are based in Abbotsford, British Columbia, Canada. The distribution center for the rental division is in Bellingham, Washington.

1 comment:

  1. So whats with the location of the press release coming from Vancouver, WA (where I live)? hehe...

    ReplyDelete