DVD Fees

In the 1980s, when video rentals started to really take off as an industry, the price for VHS cassettes was prohibitively expensive for most consumers. While prices did drop dramatically, rentals remained popular. Most people preferred to screen a movie once, and only buy their favorite titles.

To this day, rentals have continued to eat up a large share of the home video market, despite the rising costs of major chains such as Blockbuster. Whereas rentals used to cost about $3 for a few days, prices increased steadily from the late '90s on, topping off at nearly $5 a title. On top of that, late fees could be extraordinary.

Renting DVDs for Less

One reason for this rental renaissance is the rise of online movie rental services that introduced the so-called Netflix business model to the average consumer. Rather than risking a trip to the empty shelves of the neighborhood video store, people can now rent movies via the Internet. With no need to maintain expensive and flashy retail outlets, these rental companies can devote most of their budgets to amassing vast rental libraries with hundreds--even thousands--of copies of the hottest new releases.

DVD fees for these services are charged simply once a month, and those fees cover an unlimited amount of movie or game rentals. Subscription package fees are determined by the number of movies the customer wishes to have checked out at any one time. With the added innovation of the elimination of late fees, these online movie rental agencies have been able to quickly establish a reputation for excellent service at reasonable prices.