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  • #968266
    Jacflash
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    Hi, I’m doing a cert 4 in small business management and want to open a DVD rental shop in a coastal town in Central QLD. I have done some research and I would be servicing around 5000 households in the local area. But I’m having problems finding a DVD supplier. Any suggestions

    #1032026
    marketingweb
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    I personally think it’s a risky career move! DVD shops are closing down or going out of business all over the place. Movie theaters are still booming, but more and more people are either pirating movies or buying them cheap now that the buffer between DVD shops getting a movie and release to the general public is virtually non existent, unlike in the past. And 5000 households is not a lot, plus your stock outlay would be big to start.

    It’s also a tough market for independents. However my best advice if you are set on the idea is to become part of the “leading edge” group. It’s kind of like a franchise system but not, more a buying group than anything. You can be a member and either call yourself Leading Edge Video YourTown, but are under no obligation to. Trying to deal with the studio distributors yourself as a one store independent is near to impossible, particularly if you are a small store in a small area.

    The other thing you will need is stock – you will buy new releases through the distributors, but you need a big selection of weekly’s too to start. Best idea for that would be to find out where another video shop has recently gone bust or is about to close down, and make an offer on their stock. Shouldn’t be too hard as I don’t think there would be a shortage!

    Best of luck
    Matt
    Marketing Web

    #1032027
    Business Coach
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    Running a DVD shop

    Hi

    I agree with the earlier post as the DVD industry is on the decline fast over the last 5 years.

    DVD piracy accounts for over 26% of the DVD market and this is not counting the number of people that just download or borrow a friends DVD.

    The expected price range for renting DVDs has dropped as the previous rental stores all went into a price war to try and keep sales flowing. Your average price would run lower than your first year starting costs could match. This would mean you need to consider running this business for over 12 months before making any money.

    Also a big factor of this type of business is the “So what factor” : how will your DVD store be different than other DVD stores in such a way that you will take existing DVD customers off other businesses?

    Make sure you do realistic research into your break even points and net profit margins for running a retail store because this industry will make less than 12% net profit. Your business plan financial forecasts needs to be exact or you will lose money hand over fist.

    #1032028
    Jake@EmroyPrint
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    I personally only use DVD stores when I have gone over my limit downloading movies from Itunes – I ‘m sure there has been a decline in use because of online piracy, buy I don’t think they are going under.

    Every time I visit one, It’s quite busy.

    – Jake

    #1032029
    Past-Member
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    The Film Distributors are the first port of call.
    For example, Village-Roadshow has two divisions – one is for film distribution to cinemas, the other is dvds for sale incuding dvd shops.

    You will also require licenses from APRA-AMCOS – these are for both the movies and the music that is played in the store. They are separate licences. This also applies to cinemas.

    APRA-AMCOS
    http://www.apra-amcos.com.au/

    You need to ask the Distributors for their division for DVDS for sale and rental for shops like you are asking about.
    See starting list here

    You will also have to satisfy the Distributors’ requirements regarding protection from piracy and other conditions in order to receive supply.

    The main players are:
    Anchor Bay Entertainment
    Beyond Home Entertainment
    Duke Home Entertainment
    DV1
    Eagle Entertainment
    Gryphon Entertainment
    Icon
    Madman Entertainment
    Magna Home Entertainment
    Paramount Home Entertainment
    Roadshow Entertainment
    Reel DVD
    Shock DVD
    Sony Pictures
    20th Century Fox
    Universal Pictures
    Visual Entertainment Group
    Walt Disney Studios
    Warner Home Video

    #1032030
    peppie
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    I am a bit on the side of this industry but do have a fairly good idea of the dynamics of DVD and movie production. I would also be inclined to be very wary of getting into a retail “bricks and mortar” business based on DVD rentals.

    Now KarenC, please excuse my curiosity, but you seem to know a lot about this business,,, do you mind expanding on how that is so. I notice you do not say much in your profile on what you do, I will not be offended if you prefer to remain private, but when someone starts talking details like that it straight away has me curious. And in business it pays to be curious.

    PM me if you prefer.

    #1032031
    Ramalama
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    Hi Jacflash, not wanting to sound defeatist at all, but there is a new player coming onto the DVD rental market being Sony.
    For $4, you can hire a new release for 48 hours and for $7 you can keep it.
    You will be able to do this using a PS3 hooked up to the internet where you download the movie on demand to hire or keep.
    There are also the Big pond movies and Quickflix DVD rentals via post that have hit B&M DVD rental outlets as well as dirt cheap classic DVD titles from the major retailers for $5 – $9 ea. and many online DVD etailers all trying to make a living by under cutting each others price.

    #1032032
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    Peppie – yes I do know a lot about Film Distribution. My husband and family, have run a small country cinema (167 seats) for over 45 years. I change hats whenever I do stuff for him. But I am known to our regular Film Distributors. I am only permitted to use film images for promoting the movies the cinema is showing (or any other cinema who requires promo materials). For copyright reasons, the images cannot be used for anything else like products to sell, unless a special purchase licence is negotiated. I delete the images after every film is over.

    Films are negotiated between the Film Distributor and the cinema owner. A high percentage of each ticket belongs to the Film Distributor. However first release film terms are difficult for small cinemas because they require on average 5 weeks and 4 sessions a day. Very difficult for a one screen cinema to maintain. There are sometimes no shows during the week but the film still has to run with associated staffing costs etc. This is why many of the films are shown a few weeks down the track when they can be shown with another film at alternate sessions to cater for different tastes and allow for more people to come.

    A few years ago the window between film and dvd release was 12 months. Now it’s 3 months. The closer it gets the harder it is for the small cinema owners. And of course, the piracy and download issues affect things too. (I have a whole section on my own website and in the student resources section as to why we should all avoid piracy and illegal downloads.)

    My husband has been enamoured of film since he built a ‘cinema’ out of a butter box when he was six years old in the forties. He laughs when he calls himself one of the last ‘dinosaurs’ – however, despite being ‘mature’ he has kept up with technology and sound changes all along and the cinema is very special. He is a perfectionist with presentation. The sound and image quality is amazing as he cleans the film as it goes through the spools and picks up any dust or marks. Although there are now a small amount of digital presentations, (which are on encrypted hard drives for cinema use only), his emphasis is on image and sound quality. Dedication to using the correct lenses and screen ratio is paramount. He is determined to give a quality experience to the cinema patrons.

    I also get roped into helping with staff costumes on the times that they dress up for certain movies. (He didn’t tell me that was part of the marriage contract years ago! :) ) http://www.glenbrookcinema.com.au

    The customers think it’s a lot of fun and they love it. Ron wrote a book that I published a few years ago called ‘A Little Cinema’ and some copies are still available for purchase.

    Despite all of this, we still go to our local DVD shop to hire or purchase the movies we have missed! :)

    #1032033
    peppie
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    Ah haaaah, now I see clearly Karen. Yes I know of the Glenwood Cinema, but only by reputation.

    If you look though my web site you will see I have been involved in lots of different stage presentation, lighting, PA, production of all sorts and,,, running 16mm films. It has been in my blood for a very long time.

    These days it is more the copying of to DVD and mostly peoples own home movies, but I do have 4 16mm projectors (incl 2 scope lenses at least) and in storage a heck of a lot of 16mm films I gained from the remains of a hire library. Mostly doco style, but it’s film and that is maybe all that matters.

    I have my contacts and my ears open around enthusiasts in film and love to get my hands on real real film. Alas, I have to be realistic and learn about and do digital as well.

    I also get my hands into as much older analog recording gear as I can in video, sound and photos. It’s much more tactile and easier for an old hand to understand. I hope to teach my children how to handle the old gear I use too.

    I have heard it said that many people who are into film are also steam rail enthusiasts. I can quite understand why and unless you are one of them I guess it is difficult to understand the workings of such minds. I also very much understand your husbands desire to present a show well, it is also in my blood.

    Thanks for the chat (sorry to hijack the thread), I am always open to talking of such things.

    #1032034
    marketingweb
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    For the OP – just noticed this on a news service i subscribe to:

    http://www.smartcompany.com.au/internet/20100318-blockbuster-on-the-edge-of-bankruptcy-in-the-us-but-australian-operations-safe.html

    While Blockbuster may be safe in Australia according to this, I still think it’s a risky business. Maybe a better idea may be to looking at how the vending machine idea works that a lot of places are doing now? Not as much fun I know, but perhaps more the “way of the future”.

    Matt

    #1032035
    Steven Hudson
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    Hi

    With the NBN on the way my guess is more people will be down loading Movies from the net, making the survival for the DVD rental store harder.

    Cheers

    Steven

    #1032036
    JC
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    KarenC, post: 38996 wrote:
    Peppie – yes I do know a lot about Film Distribution. My husband and family, have run a small country cinema (167 seats) for over 45 years. I change hats whenever I do stuff for him. But I am known to our regular Film Distributors. I am only permitted to use film images for promoting the movies the cinema is showing (or any other cinema who requires promo materials). For copyright reasons, the images cannot be used for anything else like products to sell, unless a special purchase licence is negotiated. I delete the images after every film is over.

    Films are negotiated between the Film Distributor and the cinema owner. A high percentage of each ticket belongs to the Film Distributor. However first release film terms are difficult for small cinemas because they require on average 5 weeks and 4 sessions a day. Very difficult for a one screen cinema to maintain. There are sometimes no shows during the week but the film still has to run with associated staffing costs etc. This is why many of the films are shown a few weeks down the track when they can be shown with another film at alternate sessions to cater for different tastes and allow for more people to come.

    A few years ago the window between film and dvd release was 12 months. Now it’s 3 months. The closer it gets the harder it is for the small cinema owners. And of course, the piracy and download issues affect things too. (I have a whole section on my own website and in the student resources section as to why we should all avoid piracy and illegal downloads.)

    My husband has been enamoured of film since he built a ‘cinema’ out of a butter box when he was six years old in the forties. He laughs when he calls himself one of the last ‘dinosaurs’ – however, despite being ‘mature’ he has kept up with technology and sound changes all along and the cinema is very special. He is a perfectionist with presentation. The sound and image quality is amazing as he cleans the film as it goes through the spools and picks up any dust or marks. Although there are now a small amount of digital presentations, (which are on encrypted hard drives for cinema use only), his emphasis is on image and sound quality. Dedication to using the correct lenses and screen ratio is paramount. He is determined to give a quality experience to the cinema patrons.

    I also get roped into helping with staff costumes on the times that they dress up for certain movies. (He didn’t tell me that was part of the marriage contract years ago! :) ) http://www.glenbrookcinema.com.au

    The customers think it’s a lot of fun and they love it. Ron wrote a book that I published a few years ago called ‘A Little Cinema’ and some copies are still available for purchase.

    Despite all of this, we still go to our local DVD shop to hire or purchase the movies we have missed! :)

    Hi Karen im in south africa middelburg i whunt to start my own dvd rental business but to shore how to go about this , i will work from home whear can i buy the dvd s first of all i whunt to spesilice in new dvd only up in to 3mothes im going to deliver and coll the dvds do i have to buy it from nu metro or next entartainment or can i buy it from other retail stores and still get it fast ,do i need eany permits or so plz help i realy think this can work ,im going to set up a order form as i dell the movies i will get the next booking , olso to keep track of my bookings and get more out of it and popular on demand i will laminate my dvd covers where the costemors can order for the next trip or so, will this work plz help Jc

    #1032037
    Past-Member
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    Hi, I am sorry but I do not know what your council or other requirements are in your country. All I know is that you have to contact the legal Film Distributors in your own country and arrange purchase and agreements with them. You do not buy from retail stores – you have to have legal agreements and purchase arrangements with the Film Distributors who represent all the movie studios in your country in order to sell in a shop. Perhaps as starting point would be to contact the major film distributors worldwide like Disney and ask them who the film distributor for your country is. (Search for them on Google or similar). Best regards.

    #1032038
    jaycar
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    hmmm, only 5000 people? I’m wondering if that’s sustainable at all considering all the upfront costs of getting things set up and purchasing dvd’s etc.

    #1032039
    Mozzie
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    Hi I’m sorry I only briefly read these posts….. BUT am happy to give my 2c worth. I worked in a Video Store for a couple of years, then got a reps jobs selling each month to all the store in Victoria….. After a few years of each company going into receivership, I knew I had to look for a new Career……..
    I agree with some of the other comments about stores closing down, they are in Melbourne……. Leasing seems to be big issues… anyway sorry to be negative. Go for your dreams. PS If you do you should find plenty of second hand units around.

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