Amazon dvd rental

IT could be the final nail in the coffin of the high street video shop, writes Mark Prigg.

Internet giant Amazon today launched a DVD rental service allowing customers to borrow films by post.

Customers can sign up for the service online, and choose the films they want. DVDs are then sent out with reply paid envelopes for their return.

Once a film is returned, the next on the list is sent out.

"This could signal the end of the high street rental store as we know it," said Jose Riera of Retail Week.

"This is a market that is expanding hugely, and I think Amazon's entry is very important - it could well spark a price war."

Market research groups estimate the UK DVD rental market will be worth more than Pounds 375m by 2006.

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