Movie Gallery, which operates both Movie Gallery and Hollywood Video, has announced that the company will offer its customer online DVD rentals in an effort to take some customers back from Netflix and Blockbuster. The company's own research showed that its customers were loyal when looking for newer DVD releases, but turned to online alternatives for older movies.
The chain also said it plans to avoid the high-cost advertising battle now underway between Netflix and Blockbuster, and instead aims to simply offer its existing customers access to low-cost online rentals through the service. Ever since its acquisition of Hollywood Video back in 2005, the chain has been struggling, plunging deep into debt.
At the end of 2006, it was $1.1 billion in debt. It is currently re-negotiating the terms of its debt agreements and hopes to return to profitability this quarter.
Source:
Betanews
At the end of 2006, it was $1.1 billion in debt. It is currently re-negotiating the terms of its debt agreements and hopes to return to profitability this quarter.
Source:
Betanews
