Rogers exits video-rental business | FP Tech Desk | Financial Post
The move, which comes on the heels of the closing of movie rental giant Blockbuster Video, leaves Canadians without a national movie rental chain. Numerous smaller players, as well as on-demand companies that offer streaming movie rentals to a person over the Internet, have been moving in to compete in the sector in recent years.
Revenues from Rogers’ video rental and retail business fell 43% to $82-million in 2011.
“We wound up our rental business at the end of last week. We are now in the process of liquidating all of the videos and DVDs,” Leigh-Ann Popek, a spokeswoman for the company, said. “All of the locations will stay open but will be repurposed to showcase our wireless sales and service as well as our wireline offerings such as cable, home phone and Internet.”
Rogers has 460 locations across the country. The stores are now liquidating stock with two-for-one offerings on all remaining movies and video games. The stores will be remodelled to more closely resemble competitor Bell Canada’s Bell Stores, which showcase all of the company’s cellular, TV and Internet offerings to consumers.
Rogers’ has been watching the market for movie rentals and sales slide over the past two years. The company said it has been gradually working toward an exit from the money-losing rental business since 2009. The video business makes up less than 1% of the company’s annual revenues, which hit $12.4-billion in 2011. Exiting the business will allow Rogers to focus on areas with more room for growth.
According to Michael Arrington, senior analyst for U.S. video at market researcher IHS Inc., the number of video stores has been in contraction since lower cost movie rental kiosks and online streaming offerings, such as on-demand movies and services such as Netflix have entered the mainstream.
According to statistics from IHS, 2012 will mark the first year that the number of TV shows and movies legally streamed and downloaded from online sources will surpass the demand for those films and shows on physical discs, such as DVDs.
Strange Random Media Quote:
“Cinema, radio, television, magazines are a school of inattention: people look without seeing, listen in without hearing.” – Robert Bresson
- Rogers shutting down video-rental business (business.financialpost.com)
- Rogers exits video store business (cbc.ca)
- Rogers exits video-store business (theglobeandmail.com)
- Good bye Blockbuster, Good Night Rogers Video Stores (resumedetective.wordpress.com)
- Redbox surpasses 2 billion movie and video game rentals (bgr.com)
- Redbox surpasses 2 billion movie and video game rentals (demandroid.info)