Always-On Network's Michael Stroud talked to a focus group of 8 college students about which they prefer, downloading bootleg copies of full-length movies, or renting them online from Netflix or Blockbuster. All preferred to rent, because downloading takes too long.
When asked which service they prefer, Netflix or Blockbuster, Blockbuster won, because of the in-store rental coupons.
Bottom line? "if DVDs get too easy to download or copy, the balance could shift to piracy. In South Korea, where multimegabit-a-second cable modems are in 80 percent of homes, DVD sales have fallen sharply. To avoid that fate in America, Hollywood will need to crack down on the pirates, while offering some enticing packages to consumers who pay. If filmmakers do this, then the kids in our focus group will sign up."
Read it.
Blockbuster only won in the survey because the demographic was college students who have no money. Therefore the rental coupons really make a difference. Try that with adults with families and real world lives, you'll get different result.
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