In October of 2002 Wal-Mart announced a test program through walmart.com in which customers could rent up to 3 movies for $18.86 per month. Films are delivered via the postal service and new selections are sent out as prior selections are returned. WalMart currently offers a selection of over 12,000 titles, shipped from its six distribution centers. Blockbuster is following suit with its filmcaddy.com site, allowing up to four DVDs at a time for a $19.95 monthly subscription. Titles are limited and all films ship from its Arizona distribution center. However, expansion to more distribution centers is under consideration. In addition, in July of 2002 Blockbuster started a test market for its DVD Subscription Pass program that would allow for members to rent up to two DVDs for $19.99/month or 3 for $24.99/month. Members prepay for the service and choose from DVDs available at their local Blockbuster store. While this service does not provide any benefits in selection or convenience, it does allow for unlimited viewing of a DVD. With the enhanced content of DVDs many movie viewers appreciate extra time to view the bonus features such as deleted scenes, cast interviews, Thailand VPN Netflix and behind the scenes footage without the late fees. In addition, while Netflix, Wal-Mart, and FilmCaddy require at least a day to ship the DVD, Subscription Pass caters to the instant gratification market in that members can choose their movie the day that they wish to see it and exchange it for a new selection in one transaction. Blockbuster reports that 90% of its customers decide on their movie less than 4 hours before making a rental2.
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