By Ben Moore

The traditional dvd retail business has suffered a major hit in the last fifteen years because of companies selling films online and also the availability illegal downloads. New technology has changed the way we watch television. We are now able to pre record whatever programmes or films we want without having to stick to tv schedules.

So what is going to happen to businesses like the US owned Irish based Xtravision in the future?

Xtravision

The company was in dire straits in the 1990′s and was bought by the U.S. giant Blockbuster who brought in many changes that saved the Irish chain. They moved from exclusively renting films to diversifying into a home entertainment and technology retailer. They sell, rent and games (a great move as the profits of the Gaming Industry have outstripped the film industry in the last five years). Xtravision also sell mobile technology and accessories, popcorn, drinks and ice cream as well as still renting and selling films.

Even so this year they were in trouble when an interim examiner was appointed to see why the company was unable to pay its creditors; again it survived.

Netflix

So what is all the recent talk about this American company and who are they?

Netflix opened its doors in 1998 and quickly turned the dvd rental industry on its head. It introduced an online, flat-fee, unlimited rental model, without due dates, late fees, shipping or handling fees, or per title rental fees.

Now they are moving into Ireland.

How is Xtravision going to survive?

A few months ago the Irish based entertainment compnay began an online service Xtravision-Direct obviously acknowledging that Netflix is on their horizon. But Xtravision have not been on any major advertisment drive about their new service.

Maybe they do not see Netflix as such a major threat.

To get more info about the U.S. company I threw them into a twitter search to see what people were saying about them. Apart from some obvious self promotion, the main chat referred to the company hiking up their flat rate fee and losing more than a quarter of their customer base this year. Also they opened a new faucet of their business and then closed it down soon afterwards.

Are they moving into Europe because they knew they would lose their foothold in North America and Canada when they raised their prices?

Is Xtravision right not to be so nervous about the commercial invasion into their territory with a company who seem to be making odd strategic choices?

Let the games begin.