Published:
03-Aug-07
Australia's leading domestic rentailer Video Ezy is piloting a new electronic rental service called eBox. Customers equipped with an appropriate storage device (such as an iPod) can download movies from an in-store content server. At home they can then connect the device to a dedicated home media centre (HMC) set-top-box. The HMC validates the digital copyright, checks to ensure the customer has sufficient funds available and subsequently decodes the content. Customers must pay a 24-hour rental fee prior to watching movie but are not obliged to pay for movies downloaded but not watched.
The eBox HMC has been developed by Mobilesoft, Australia-based communications software engineering company. Video Ezy has confirmed an initial order for delivery of 10,000 HMC set-top boxes from Mobilesoft valued at more than A$4.5m ($3.8m). Service is currently being piloted by Video Ezy staff before a planned trial among 100 customers in Sydney by the end of 2007.
Our take...
This unique strategy combines physical and digital video rental models. Customers still visit a VideoEzy store but do not subsequently have to return a physical videocassette or DVD disc; they are also able to 'download' a movie without the need for an Internet connection at home.
If successful, the service could benefit store owners by eventually reducing the need for physical copies of titles which would cut back on floor space required and ultimately decrease overheads. Video Ezy franchisees will receive a proportion of the revenues from each digital rental.
The service is also likely to improve convenience, flexibility and variety for customers. In theory consumers could take home many more titles per visit (Video Ezy has suggested as many as 20) and then decide at home which they want to pay to watch. Video Ezy claims it will buy 50-60 new titles each month for the service which will provide for greater variety. Customers will also benefit from no late fees and avoiding often hard-to-detect damaged physical stock such as scratched discs. However, the rental chain has said that customers are likely to have to pay for the HMC which may negatively impact take-up of the service.
Australia,
