In early 2002, Sean Spector and Jung Suh started to share their frustration with not being able to rent video games. This led them to search online, where they could not find anyone serving the video game rental market. In mid-2002, Sean and Jung partnered with Founding CEO Toby Lenk to start GameFly.
Our subscription service has grown rapidly since its launch in 2002. We are the largest online video game rental subscription service in the United States with more than 334,000 subscribers as of September 30, 2009. We believe our growth has been driven by the compelling value proposition of our subscription model, extensive selection of titles, high level of customer service and effective marketing programs, as well as the increase in the installed base of video game consoles. We provide our subscribers access to a comprehensive library of over 8,000 titles covering all major video game and handheld game consoles. We purchase nearly every new title upon its initial release in the United States. In addition, we continue to carry in our inventory approximately 95% of all titles that have been released across multiple generations of the major video gaming platforms since we started our company.
Our subscription service allows you to have one or more video games out concurrently with no due dates, late fees or shipping charges for a fixed monthly fee starting at $15.95 per month. Our average subscriber rents approximately 22 video games per year from us at a cost of less than the purchase price of five new video games at an average price of $60.00. You also have the option to purchase a video game you are currently renting through our ‘‘Keep’’ feature. We believe a significant value we offer to you is the ability to rent video games before you buy them. According to our August 2009 survey of subscribers, ‘‘try before you buy” ranks as the most important feature of our subscription service. In addition to selling video games through our ‘‘Keep’’ feature, we also sell new and used video games. To complement our subscription service and video game sales, we operate a network of advertising-supported websites that provide video game content and information.
Over the years, we have learned that our members love our subscription service and have very high service standards. At GameFly, we are committed to continually improving our service and adding new features that enhance the value of a GameFly membership. We have a single-minded objective: to bring more value, more variety, more enjoyment and more convenience to your video gaming experience. Our customer support team is here with the goal of providing excellent service in order to make the experience complete. A recent survey indicated that almost 90% of our members would recommend GameFly to a friend!
If you are a GameFly member already, thank you. If not, we encourage you to try GameFly and, like thousands of other gamers, experience the value of our service firsthand.