internet video and game rental business prospects
business climate
As of October 2002, the home video market was estimated to be worth 25 billion dollars in the United States.
There are unconfirmed reports that the combined paid membership
of the two leading internet adult dvd rental sites totals slightly over
200,000 members as at the end of 2003. This translates to approximately
60 million dollars in annual subscriber revenues for these two
companies alone. There are no estimates of additional revenues
attributable to conventional sales.
Industry publications estimate that the adult home video segment has an
annual volume of an additional 25 billion dollars worldwide
in 2004.
In the latest Netflix SEC filing at EDGAR
, the internet dvd movie rental giant, achieved a 78% annual growth rate in revenues
to 270 million from 1.4 million paid dvd movie rental subscribers and
71 thousand free membership trials at December 31/2003.
Revenue guidance is for fiscal 2004 revenues to
grow by a further 70% to 460 million.
At the same time, they estimate that their current
market penetration is less than 3% of the dvd movie rental market.
Gross margins are reported to be 45% and are
expected to continue to be in the same range.
2003 technology expenditures were
17.8 million dollars, which is the same range of
expense as in prior years.
Monthly subscriber churn is approximately 5%.
Additional Netflix company background can be found here.
Internet game rental portals consistently report weekly gross rental revenues for the top ten game titles on XBOX and PLAYSTATION 2 at around 5 million dollars for any given week.
disclosure
principal officers and associates of platformlabs.com own a
non-controlling passive interest in a dvd rental company
servicing a specialty market segment, as well as providing
technical and consulting services to said company.
rental software information index
