Big Picture Big Sound

Why Rent DVDs When You Can Trade Them for Less?

While Blockbuster and Netflix battle it out for the habitual DVD rental market, lowering the price of monthly admission for movie junkies like ourselves, a new company called Peerflix has arrived with an interesting alternative - DVD trading.

Here's how it works. You set up a "have list" (DVDs you own and are willing to trade) and a "want list" (DVDs you want to receive). Peerflix matches up those who want a title with those who have it, the trader mails the disc to the tradee and the recipient pays 99 cents (plus Peerflix points) for a successful transaction. The trader (the person who sent the disc) then gets Peerflix points credited to his account that entitle him to receive a disc in trade. The service itself is free and if you sign up now, you can get your first trade free. [editor's note: They have since improved this offer so now the first 100 trades are free]

The system has an eBay-like feedback system in place that prevents bad traders from sending junk or damaged discs. Plus individual titles are qualified via a point system so, for example, boxed sets are worth more points than new release single disc titles, while new releases are, in turn, worth more than older catalog titles. It might cost you three trades of older catalog DVDs to earn enough points for a boxed set, but this makes sense, given the higher value of sets.

So is this a viable alternative to DVD rentals? Yes, it certainly seems to be. But the system does have some limitations. First of all, DVD artwork/inserts or the jewel boxes themselves are optional in the trade. In order to keep shipping costs low, Peerflix recommends you send the DVD only. In fact their mailer allows you to ship one DVD, reasonably securely to someone in the U.S. for just 37 cents. If you choose to ship the artwork or case to the recipient, your postage costs will probably be higher. Plus new release titles may be a little harder to come by, at least until the pool of traders gets large enough, while back catalog titles will probably be more plentiful. Also, you're relying on the individual traders to be diligent about sending the discs off quickly, but the feedback system should keep people honest and on their toes.

The success of eBay has shown us that the "honor system" actually works pretty well for the most part, so I'd expect comparable results from Peerflix.

If you're interested in checking it out, then they're currently offering one hundred complimentary trades (until the end of 2005), so you can get a taste of Peerflix. They hope you'll come back for more.

Start trading your DVDs today and get your first 100 trades FREE.