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DVD Marketplace Looks For Online Growth

22 Feb, 2006 By: Holly J. Wagner

Vancouver-based DVD Marketplace is a small company with ambitious plans to become the comparison-shopping site for DVDs.

“There are a lot of companies out there saying they can go up against Netflix. We're not trying to do that,” said Brian Holden, DVD Marketplace marketing manager. “As prices come down, renters are going to start closing their accounts and buying. We think the transition is happening now.”

The site aggregates DVD sellers large and small to offer everything from personal collections to rental selloff to new merchandise.

Companies that sign up with DVDMarketplace.com as featured merchants pay a flat 10% commission on each sale. In exchange, they get a banner that rotates at the front of the DVD Marketplace site; each banner directs the buyer to the featured merchant's site and excludes competitors. Or the buyer can search by title from the DVD Marketplace home page and compare prices from different merchants.

Distributors Buy Rite DVD, Newtown Video and Video Group are featured merchants, along with upstart rentailer GamzNflix, which sells off rental copies.

“If they are putting up 20,000 titles for sale, on some they are going to be the best price and on others they are not going to be the best price,” said DVD Marketplace consultant and former director Jim Carroll. “The market will find its price.”

The site also helps sales by letting buyers order multiple titles from the same merchant and add just $1 more in shipping charges per additional title purchased, Holden said.

Even individuals can sign up to sell discs they no longer want, although those small sellers pay a flat 15% commission on sales.

The company also operates rental site videomoviehouse.com, but for now expansion efforts are focused on the sellthrough market and in the coming months, the site operators hope to branch into ethnic markets.

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