Borders.com, Redbox offer used DVD sales
Others promote less expensive inventory
By Susanne Ault -- Video Business, 8/15/2008
AUG. 15 | Borrowing a page from the playbook of traditional rental stores, Borders.com and Redbox have quietly launched used DVD operations this year.
Coinciding with its Web site facelift in May, Borders.com started offering used DVDs, books and CDs through a partnership with inventory aggregator Alibris.
Borders.com users make their picks from Alibris’ selection, spanning thousands of titles from independent retailers worldwide. Alibris then fulfills the orders and ships them directly to consumers. Borders.com shares in the resulting revenue.
At this point, there are no plans to also introduce used DVDs at the chain’s bricks-and-mortar outlets.
Earlier this year, Redbox bowed previously-viewed DVD sales at its rental vending machines in thousands of locations. At these spots, people can either rent Redbox titles for a $1 a night or purchase a previously viewed one for $7.
These retailers both hope to draw more customers with these additional product choices, priced far lower than new DVDs. Last week, Borders.com advertised used titles, such as Top Gun and Finding Nemo, for prices as low as $2 and $3.
“We know that our customers are sometimes interested in the lower cost option that used products can offer them,” said Kevin Ertell, senior VP of e-business for Borders. “In addition, many are looking for items that are no longer in print. Of course, we want to serve our customers and meet all of their needs, so we have this option on Borders.com.”
Trans World Entertainment’s F.Y.E. chain also has recently ratcheted up its promotion of used product as great value fare. A featured coupon in a recent full-page Los Angeles newspaper ad offered 40% off a used DVD or CD. Also, people could snap up five used DVDs/CDs for $5 total during an Aug. 2 sale.
So-called previously-viewed sales continue to be a thorn in the side of studios, which, for the most part, do not share in the revenue when a used DVD is sold.
In June, Warner Home Video instituted a revenue-sharing policy designed to limit rentailers’ previously-viewed stock. After renting titles for the typical 29 days in this agreement, stores are forbidden from selling any more than 20% of these previously-viewed units of major films. Normally, there are zero limits on how much used product rentailers can sell.
Regardless of any studio concern, retailers appear to be catering to the needs of their customers first.
“It’s one more level of service and convenience that Redbox offers its customers,” said Gary Lancina, Redbox marketing VP. “Pre-viewed DVD sales are a natural extension for the brand.”
Currently, Borders.com’s used area is not highly visible. But Ertell promises to boost awareness for the service soon.
“Borders Marketplace is still in its early stages, and it is our plan to have the service mature further before marketing it widely,” he said. “We anticipate making it more visible in the future. Our first priority has been to launch the site in total and market it.”
