June 24, 2005, 12:00 AM

Videomoviehouse.com becomes the latest competitor in online DVD rentals

Videomoviehouse.com Inc., which has been selling movies online since June 2001, is moving into the DVD rental business, going head-to-head with market leader Netflix and Blockbuster. Subscriptions will be available to U.S. and Canadian customers.

Kurt Peters

Executive Editor

Vancouver, BC-based Videomoviehouse.com Inc., which has been selling movies online since June 2001, is moving into the DVD rental business, going head-to-head with market leader Netflix and Blockbuster, the company announced. Subscriptions will be available to U.S. and Canadian customers.

It expects to build its rental business on the 200,000 customers it reports having sold movies to over the past four years. One of its differentiating factors will be the ability for consumers to buy or rent from the same site, the company says. “With both options together on one site, the company expects to see increased traffic and sales in both divisions,” Videomoviehouse.com said in a statement accompanying the announcement.

Videomoviehouse.com will charge $17.99 a month for unlimited rentals with three out at a time, the same as Netflix. Blockbuster.com charges $14.99 a month for the same terms and throws in two monthly rentals from a Blockbuster store.

The company reports its first operating profit last quarter. It projects gross sales for its fiscal year that ends June 30 of $3.5 million, 250% higher than the prior year’s revenue.

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