Local Video Store takes on Netflix, Redbox

A movie consumer picks up overpriced movies from a Netflix kiosk at a local video store

Springfield, MO – A local movie rental company believes their business model is sound. It just needed some tweaking to compete with Netflix and Redbox in the Southwest Missouri market.

“People love shopping at video rental stores,” said local Movie Holla’ Manager Dewey Dom. “The drive to the store, the smell of it, arguing with friends over what movie to get, differentiated pricing among new and old movies, long checkout lines, the movie drop-box and of course late fees. It’s a total experience that Netflix and Redbox cannot duplicate ”

Still, with sales lagging causing the closure of several local video rental stores, Dom knew he had to do something. His groundbreaking idea now being tested in his Springfield store has Movie Holla’ executives hopeful it may save the company from its recent bankruptcy.

“We’re taking Netflix and Redbox on,” Dom said. “We’re installing a Redbox machine in the store as we speak, and I am going to sign the store up for Netflix in the next couple days.”

Dom said Movie Holla’ customers soon will be able to browse Netflix’s massive selection of movies at a computer terminal in-store.

Once they choose a movie, Netflix will send it to the store and Movie Holla’ will contact the customer to come pick it up and pay for it. Netflix rentals will cost $7.95 for five days. Late fees are $1 a day.

“People pay a minimum of $8.99 for a month of Netflix,” Dom said. “Now you can get the movie you want for five full days for a dollar less. Even with a one-day late fee you are looking at saving four cents.”

Dom said customers not wanting to wait to get the latest movies in the mail can use the in-store Redbox machine for instant satisfaction. Redbox movies run $1 for one day, but Movie Holla’ will charge a $5 convenience fee.

“People keep saying, ‘How are traditional movie rental stores ever going to compete with the Netflixes and Redboxes of the world?’” Dom said. “I think our solution speaks for itself.”

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