The limited-play DVDs can be played on any standard DVD player, but only for 48 hours after their packaging is removed. After that, they are useless as playback media. The company is targeting the rental market and intends to price the limited play DVDs at one or two dollars above the standard rental fee. In addition, the limited play DVDs will be available at nontraditional DVD outlets, including convenience stores and supermarkets. The limited play DVDs will not contain any of the extra features found on DVDs designed for home video libraries, and Disney intends to wait at least several weeks after a film enters the traditional DVD market before making the limited play DVD available.
Some experimentation was done with a similar technology in 1999. Divx was marketed by Circuit City and offered limited play DVDs. However, Divx required a special player to view the DVDs. Disney is confident that making its limited play DVDs widely available and able to be viewed on equipment that consumers already own will overcome the problems that Divx encountered (Hettrick & Sweeting, 2003).
han a late fee, Disney hopes to capture this market segment.
Disney is also manipulating the price component of the marketing mix by pricing the limited play DVD only slightly higher than rentals. This targets consumers who are interested in seeing the film, but who consider the inconvenience of two trips to the rental outlet and possible late fees a significant enough cost to avoid the rental.
It remains to be seen whether Disney's strategy will work, but the company has little to lose by pursuing this approach.
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