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Brick No133: Fixing The Film Shop
By Matt Weston, Thursday 24 February 2005 Fixing The Film Shop If you're anything like me, you can't walk into a shop without trying to figure out how it could make more money. It even happens when I go to rent a film. I'll give you a few details today, but it's probably best if you paint your own picture. My local DVD rental shop is called, simply, The Film Shop (a black & white sign). The window reads, "Specialists in World Cinema", and "Video & DVD rental". The proprietor sleeps above the shop. Stepping in from the cold, you'll see that The Film Shop mostly stocks movies that feature Kevin Bacon, or his Spanish, Argentinean or Japanese equivalent . . . And that the back catalogue shelves boast rarities, obscurities and profanities directed by the likes of Allen (W), Almodovar (P), Benigni (R), and Bergman (I). It's one of my favourite shops. We're regular renters. On average, maybe we rent one back cat DVD (£2.50 for three nights) and one new release DVD (£3.00 for one) a week. So with the late fine, that'll be 3.50 But it struck me, when hiring a film out on Saturday, that something needed fixing. The problem came when I handed over the empty DVD case and gave my passcode ("514502") to the Portuguese Peter Sellers look-alike behind the counter . . . Peter Sellers: "That'll be 2.50, thanks. Ah. But, your last film came back late. So with the late fine, that'll be 3.50." I paid my 3.50 and left the shop, tail between my legs. The Un-Blockbuster Until now, your local video shop had a clear strategy. Like most independents, there's a Blockbuster within two spits of The Film Shop. But the easy way to beat Blockbuster is to pitch as its antithesis, its exact opposite, the Un- Blockbuster. One shop in Golders Green High St apparently recast itself "Dambuster" after the megalith opened a store directly opposite. Oh, and after the film. (Thanks, CB.) For more on "Un-", read Brick No94, "The Language of the Upstart". Specialist video shops have, over the last 20 years, cast Blockbuster as the villain. It scores very lowly on Jennifer Rice's love/ hate formula: 0.121354, more hated than Microsoft and McDonalds. http://snipurl.com/love_hate But there's a new kid on the block: netflix.com. And post-Netflix, the very term "late fine" suddenly, overnight, casts the local video store as the villain. If you're not au fait, Netflix doesn't charge per film you rent. And it doesn't charge late fines. Instead, its 1.8 million customers pay a flat monthly fee (e.g. $18 means you can rent 3 DVDs at any one time). Take your pick from an online catalogue of over 18,000 titles. Order online. Delivery to your door. Watch and return (by pre-paid post) as quickly or slowly as you please. For sure, Netflix itself hasn't hit these shores, but scores of copycats have. And I know plenty of film aficionados who already subscribe. As Wired put it: "Netflix Imitators Are Everywhere". The scrap for the aficionado Netflix has been falsely heralded the Blockbuster Buster. Many said it spelt the end for the yellow and blue peril. But the real threat, sadly, is to the local. Like Blockbuster, its late fees suddenly feel draconian, outdated. But Blockbuster has the distribution network to compete, albeit badly. Latest slogan on blockbuster.com . . . "The End Of Late Fees. The Start Of More." More what, exactly? Fees? An aside: I don't think people desperately wanted somebody to kill late fees. It's not even the best thing about Netflix. But by making "No Late Fees" the heart of its message, Netflix recast its competitors as baddies. Isn't Netflix really targeting, head on, the ideal customer of the local independent: the aficionado? IMHO the average Blockbuster customer isn't going to pay £15-20/ month to hire from a back catalogue of 18,000 obscurities. They're more concerned that there's a place that serves new releases and popcorn within the boundaries of any ASBO. But the regular renter, the movie aficionado, is the lifeblood of The Film Shop . . . and Netflix. Up against Blockbuster, it's easy. You can beat it hands down on speciality, range, service, knowledge, and character. But Netflix is different gravy. 2 ways to go I thought I'd share with you two ideas I had on the way back from The Film Shop. Like many ideas we have in other people's shops, they might be unworkable. But I do think they offer a fresh take on the Netflix problem. When you've read them, why not add to the list. Just drop me a line. Here goes: (1) The Rio. In 1999, The Rio Cinema reopened. It's round the corner from me, and serves the same locality as The Film Shop. The Rio is the Un-Odeon. It's delightful, Art Deco, Grade II listed, and screens films ignored by mainstream commercial cinemas. And The Rio's "Type A" customer is the same as The Film Shop's: the aficionado. Like many small businesses, they should talk. The main job The Film Shop needs to do is keep, heck even grow, its list of "Type A" customers. Why not offer a movie buff deal that online Netflix can't match? Both The Rio and The Film Shop have access to the same aficionados. What if £35/ month bought me unlimited films at The Rio (two seats), and unlimited DVD rentals from The Film Shop (up to three at a time)? (2) The Knowledge. Netflix reworks the Amazon model by matching buying behaviour to help "find the right movie for the right person", (Reed Hastings, Netflix founder) and by using customer reviews to tip the sale. (Ironic that Amazon itself should copycat Netflix.) Against the odds, Netflix makes an online service look more personal and knowledge-based than an offline service. What if: (a) The Film Shop started to use its database like Netflix uses its. They have our address details. We spend maybe £20 a month there, but we've never been sent a print out with, say, upcoming releases by directors we've already rented. (b) The Film Shop gave each member of staff a shelf to display his or her favourite films. What they don't know about movies isn't worth knowing. Ask the Peter Sellers character to compare two films, and you'll get enthusiasm, honesty and minutia. But you have to ask. Oh, and handwritten reviews work in Oddbins, so why not here? (c) The Film Shop included, with every DVD rental, a customer feedback sheet. Empty boxes for 100-word customer reviews. Green & red stickers for rent & don't rent. Every empty DVD box includes the reviews to date. Best review of the month wins free DVD rental for the next month. What would happen? Over to you. Bric-A-Brac (1) It being Oscar week, I thought it might be a good time to draw your attention to three more film-related Bricks. Taking their turn on the Red Carpet: Kevin Bacon, Halle Berry, and James Cagney. (2) Am busy doling out the Google AdWords £20 vouchers from last week's Brick. If you want one, I still have some left. Oh, btw it's very strictly only one voucher per reader. And only for people who haven't already got an account. Send a blank email to voucher@businessbricks.co.uk. The Film Shop Suggestion Box Posted Thursday 10 March 2005 To read the Brick from the top, click here. Thanks to Gavin, Arbind, Sarah Clarkson, Sarah Clarke, Rupert (x2), Tim, and everyone else who sent in suggestions. These are but a few: (1) "Video/DVD night has always been synonymous for me (and virtually all my friends) with takeaway night (usually, but not exclusively, Pizza!). "In a win/win relationship, why couldn't a local video shop & takeaway team-up to offer a joint discount deal i.e. 20% off the Pizza/Indian/Chinese if a film is hired the same night. If you can browse the video library, check availability & order online, the film could even be delivered with the food! Would definitely tempt me on a cold & rainy Saturday night . . . "The video shop could also alternate the restaurant partnership every week/ month, and test which particular type of food restaurant proves most successful." Gavin Davis (2) "I enjoyed in particular your reference to The Film Shop due to its direct relevance to my business. I already apply a "feed-forward" approach and have regular (well, so far once-a-year) newsletters that I mail out to over 1100 client base built from scratch since 2001 to my "DVD ONLY" membership of Bollywood films primarily. "I've built a reputation amongst Asians at hiring out original movies on DVD in a market saturated with pirate copies. It's taken nearly four years to break even." Arbind Ray, Bollywood Blockbusters Ltd (3) "Why not have a look around for local film making talent (local colleges, art centres and so on), and have a small section for them. You encourage the film makers and their associates in to the shop to glory over their films, you encourage the aficionados to investigate some new, up and coming artists - and you never know, you might help someone break into the big time! "And, if The Film Shop did associate with The Rio, you could run evenings where they showed the latest local productions - maybe even free of charge?" Sarah Clarkson, The Datca Soap Co (4) "I would love (strong word) to be able to buy movie soundtracks at the local video/ dvd hire shop. So many times you watch a film and think what a great soundtrack, but never get around to buying it. "If it was just right there when you return the film I'm sure it could be a nice little money-spinner for the shop. BTW my local video shop (Wallington, Surrey) is so non-descript I can't even remember what it is called!" Sarah Clarke (5) "What if the Film Shop offer one month's free DVD rental for every friend introduced (i.e. signs up to monthly DVD rental) by an existing customer. This will help build their client list (& database)." Rupert Tappin, Future Fundraising (6) "It could introduce a home delivery service for monthly subscribers. Beat the NetFlix copycats at their own game - give the customer the best of both worlds: the convenience offered by the virtual online retailer, but go one stage better with the personal touch that can be delivered by a local store. "If the shop develops a website whereby subscribers can surf through the available selection and order online, the film can be delivered by hand within a mutually convenient timescale. "The local delivery lad (or indeed the shop owner if it's an A-type customer that regularly refers others) can pick up any watched DVDs due for return and - this is the KILLER TOUCH - also have to hand an additional DVD that comes recommended by the shop (based on the customer's previous rentals, as recorded by the website... or gleaned from a face-to-face conversation the last time the shop delivered a rental)." Rupert Tappin, Future Fundraising (Again!) (7) Tim Goldsmith sent me his Nan's favourite joke (for Sainsbury's and Tesco read Blockbuster and Netflix): "In my town, there once was a small grocer's shop that had been on the High Street for years. The husband and wife team knew most customers by name. One Monday morning, they went to open the shop and found Sainsbury's had opened a branch right next door. "Oh well," they thought. "The competition could be healthy." "Turnover suffered, but they stuck with it until a few weeks later Tesco opened a branch on the other side of them. ""Now what do we do?" asked the husband . . . "Easy," replied his wife. "We change our name to Main Entrance"" Tim Goldsmith, Photoshot.com Remember to sign up: back to top |
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