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Tiny QwikFliks seeks to carve out piece of Netflix's DVD action.


Now comes Laguna Niguel-based QwikFliks Entertainment Rentals Inc., which rents DVD DVD: see digital versatile disc.
DVD
 in full digital video disc or digital versatile disc

Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology.
 movies online, and has hopes to compete with Los Gatos-based Netflix Inc.

Netflix easily rules the online DVD rental Online DVD rentals allow a person to rent DVDs by mail. Generally, all interaction between the renter and the rental company takes place through the company's website. How it works
Most companies operate on the following model:
 business with 1.5 million subscribers and 12 million DVDs spread around 23 distribution centers.QwikFliks is tiny by comparison. It has 1,500 customers and counts 17,000 DVDs at one distribution center in Laguna Niguel.

"There's Netflix and the rest of us." said Phil Brodhagen, founder and chief executive of QwikFliks. "It's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a  we had a second major player. We're planning to be the No. 2 choice."

It won't be easy. Last year. Wal-Mart Stores Inc. launched its own online movie play, and Blockbuster Inc. is readying its service where customers can rent DVDs online and return them to stores with a subscription.

Brodhagen launched the company in 2001 with a few partners. He later bought them out.He began by working out of his home and later moved to a warehouse, where he stored and shipped DVDs. He counted about 100 customers his first six months.

QwikFliks, which ships movies to customers mostly in Orange, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  and San Bernardino San Bernardino, city, United States
San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854.
 counties, is looking to open distribution facilities in Colorado and Florida, Brodhagen said. That would let QwikFliks get DVDs to customers faster.

But being the little guy can be tough, especially when popular new releases come out and folks are hot to see them.

"Buying 1,000 copies of the movie would drain the capital," Brodhagen said. "It's a balancing act of how many people want it now and bow many people are willing to wait."

--Orange County Business Journal
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Title Annotation:Media & Technology; QwikFliks Entertainment Rentals
Comment:Tiny QwikFliks seeks to carve out piece of Netflix's DVD action.(Media & Technology)(QwikFliks Entertainment Rentals)
Publication:Los Angeles Business Journal
Article Type:Brief Article
Geographic Code:1USA
Date:Apr 5, 2004
Words:275
Previous Article:High overhead has BuyMusic singing the blues.(Media & Technology)
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