The online movie rental industry in the United States has been growing at a rapid pace during the past decade. Netflix and Blockbuster are two prime examples of companies that operate in this arena, each with a large base of subscribers. Two standard methods for movie delivery are employed by...

In the past several decades, new-product diffusion models has been an active area of research in marketing (see, e.g., Mahajan, Muller, and Wind 2000, and Mahajan and Wind 1986). Such models are useful because they can provide important insights into the timing of initial purchase of new...