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New Technology Could Prove a Rental Opportunity

8 Aug, 2005 By: Stephanie Prange

Retailers seem more nervous about the move to high-definition discs than they were about the switch from VHS to DVD. Certainly, the sellthrough retailers aren't happy about having to carry two formats if a format war between Blu-ray and HD DVD breaks out. But I think the transition could prove an opportunity for the rental dealer.

With new technologies, consumers will likely look to try before they buy. Rental dealers, it would seem to me, would be in a good position to let their customers give the new high-definition disc technologies a test run. They could rent both the hardware and the software, giving their high-definition adoptee customers a way to experience the new medium without having to commit to the Blu-ray or HD DVD camps at the outset.

Many of the big sellthrough dealers seem petrified by the coming format war, perhaps rental dealers can gain some advantage by jumping into the new technology breach.

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