Understanding cashback DVDs

Watching the latest films no longer has to be an expensive business – where a trip to the cinema to see one film may have cost £5 and above in the past, for the same price, the consumer can watch the same film (with extras!) as many times as they like, and in the comfort of their own home.

The online DVD market
The popularity of DVD’s has gradually led to a revolution amongst the retailers, all of whom find themselves under increased competition from businesses offering competitive prices. The rise of the internet plays a significant role in that consumers have become exposed to a world wide market where films can be bought internationally, pre-release and with cheap and quick delivery to the home.

With retailers cashing in on the popularity of DVD’s on a world-wide scale, the choices available for the consumer continue to grow, and finding the best offers and deals can be time consuming; so it comes as no surprise that customers are looking at the internet to help them in their quest for the best value-for-money products.

Although general internet searches can help, and whilst there are perhaps two or three forerunners in the sales of DVD’s, a simple price comparison website can assist in identifying those retailers with the most competitive prices. These sites primarily rely upon revenues from retail advertising, taking a commission everytime a customer makes a purchase after having been introduced to the retailer through a link on the comparison site. But whilst the comparison sites can identify those retailers that stock the product required, increasing pressure on retailers to advertise on the internet can result in a surge of businesses claiming to offer the best deals when there are superior ones on offer elsewhere.

DVDs and cashback
Cash back websites, like Cashback Club, have formed a more incentive-driven package for the consumer in that, unlike those sites that simply compare prices, cash back sites return a portion of their commission back to the consumer either in the form of a percentage or as a flat rate.

For those not familiar with how cash back works; a member of a site can collect points or pounds that are redeemed to them through purchases made with those retailers who have advertised on the cashback site (providing of course the customer has followed the link through the cashback site). Sites can vary in how they reserve the points or pounds belonging to the customer, occasionally waiting for a specified period of time, whilst in other cases waiting until customers reach a specified amount, which they can then claim after they hit that mark.

Cash back can be transferred to a member either through BACS (bank transfer) a cheque or even swapped for discount or gift vouchers. Vouchers can be obtained at trade price by the cash back sites and so occasionally may have a higher value than those sold on the high street. In some instances the cash back site may e-mail the member with a discount reference code which is then given to the retailer upon purchase.

For customers looking to purchase DVD’s, then a simple bit of research can identify those sites that give the best vale-for-money. Cashback Club assists in the choosing process by listing reputable companies but also by identifying clearly, the amount of cashback they would receive after purchase.

DVD cashback examples
To test which sites offered the best purchase prices on DVD’s a simple comparison test has been completed on a new release 2-disc DVD, with a regular retail price of £27.99.

- The first retailer sold the DVD at a price of £15.99, making a saving of £12.00 (43%). It also offered free delivery and when purchased through the Cashback website, came with 2 % Cash back. (Making the overall spend £15.67)

- The second retailer, a major highstreet music and DVD store, sold for £17.99, again with free delivery but came with a slightly higher cash back rate of 3%. (Making the overall spend £17.46)

The examples above only show the kinds of deals that can be made on new-releases (still a minimum discount of £10 from the RRP) and essentially these tend to be the more expensive DVD’s as retailers try to cash in on the zeitgeist of the product. But it should be noted that, as with many high street retailers, DVD’s can often come with deals attached; one retailer advertised on the cash back site offered 3 DVD’s for £20 and the range of choice seemed perpetual.

But for those money savvy members who perhaps prefer to see a wider range of films and want to keep the costs down, the DVD rental might be a more suitable option. Internet rental services are still relatively new, but have proved quite successful in their short time.

Essentially they work exactly how you might expect: a customer joins the rental service and creates a list of titles. The chosen DVD’s are then posted (Royal Mail 1st class) to the customer along with a return envelope which the customer then sends the DVD back in.

Most companies will let members keep the DVD’s for as long as they want; though there is usually a limit on the number of discs that can be rented at any one time. Once a disc is returned, then another is sent out in its place and as members are required to provide bank details for billing purposes, the rental companies have that add insurance that their discs will be returned whilst the customer has the incentive of returning in order to receive more.

There are a number of DVD rental sites accessible on the Cashback Club website so members can have access to even better details. One of the rental companies listed offers a choice of 6 different packages which establish the cost and number of discs the customer would rent on a monthly basis. Members can rent to suit their viewing habits with the minimum cost of £4.99 per month for 2 discs, up to £24.99 per month for 6 discs – still less then the cost of buying just one new-release DVD. This particular retailer adds further incentives by offering a 2 weeks free trial on certain packages and the first month half price to new customer; there is also a free prize-draw for new customers. Joining up through the cashback website will guarantee £1.50 cash back so the member actually makes a profit if they sign up for the 2 weeks free trial.

Whilst movie studios and production companies battle over the rites of internet movie downloads, the next stage in the technological evolution, it still remains flawed and lacks the confidence from consumers that DVD purchases and rentals bring. Searching for the best deals is subjective in that every customer has different needs and tastes, but at least through searching on a cash back site, there is some guaranteed reward.

Filed under: Cashback Guides