The DVD rental by mail industry was pioneered by the US company Netflix, launched in 1999 to take advantage of the power of the internet and easy delivery of DVDs by post, while eliminating hated late fees. Online rentals have also been around for years in New Zealand (video store Arovideo did the first rentals by courier in 1997), but even now, not many people have heard of them. The three main subscription-based online services have all launched since 2003: DVD Unlimited, Fatso, and Movieshack. Customers love not having to go down to the video store and the absence of late fees (which generate 18% of video store income).

The situation is similar to the late 1990s mobile phone craze, before the market reached saturation. Prices are relatively low to entice new customers, and most services offer a free trial. The New Zealand DVD rental market will probably continue rapid growth for at least several more years as it goes mainstream, driving many traditional video shops out of business in the process. For comparison, Screen Digest research indicates that by 2009, rental-by-post will account for nearly two-thirds of all British video rental transactions (and one-third of rental activity in Europe), with New Zealand likely to fall around the 50% mark in our opinion. The exodus to rental-by-post will obviously hurt video shops, many of which will probably close. So enjoy the free trials and cheap subscription fees while you can.

We at NZ-dvd-rental-guide.com will continue to guide the way with our reviews and rankings, helping you pick the best.