If you have been looking into online movie rental companies, you may have noticed that they are incredibly low priced. Compared to the cost of walking into a store and renting a movie physically, they are a real bargain. But why do online rentals cost so much less? The simple answer is overhead. Overhead is the term given to the costs associated with just opening and running a business. For a traditional video store, this means everything from the salaries of the employees, to the lighting bills, to the rent for the building. Add to this the cost of actually maintaining a physical inventory of disks or tapes, constantly cataloging and organizing them. Replacing damaged disks and re-stocking returns. It is a lot of work considering the relatively low price of renting a single DVD.
An online rental company has different types of overhead, but it costs far less in the long run. The largest costs can be licensing the actual movies and paying for bandwidth for the customers. Without the need for regional stores, everything can be largely consolidated at a central headquarters, saving on rent. Customers of online sites are also incapable of damaging or losing the merchandise. This means that there is no wear and tear on the movies watched. Digital files do not get damaged from viewing DVD disks do. This eliminates the need to replace disks and saves money.
Lastly, there is the issue of the availability of new 123movies official. In a traditional store, new arrivals must be tediously prepared for rental by customers. The physical condition must be checked and the boxes tagged. With an online site, the stream is ready in almost no time, so no employees need to waste precious time fidgeting with merchandise. Online movie rental services will continue to grow and evolve, adding new features and new ways to dazzle us. Their cost will probably never increase. If you are tired of paying overpriced membership fees, consider looking into an online rental site.
