Digital didnt kill the video rental star
The video rental market continues to increase, despite competition from digital media technology, said Paul Uniacke, co-owner of Franchise Entertainment Group.
Generally, there have been concerns that video will be quashed by digital viewing options. Referring to a recent report, which found video stores across Australia recording an increased year-on-year income, Uniacke said:
“In 2009 over 180 million movies were rented in Australia and more than 76 million DVDs were sold. Through diversifying our products to include DVD and TV on DVD sales, video game sales, phone sales and recharges as well as confectionary, video rental stores are in fact thriving and successful businesses.”
The report highlighted that the strength of the video sector lies in diversification – which led to an increase in customer spend per transaction by 17% since 2004.
Uniacke said that another factor for continued success was that Blu-ray high definition video and 3D are difficult to distribute electronically. “Most people would rather rent the movie than go through that process,” he said.
While acknowledging that video does face competition from other industries, such as live sport broadcasts, digital television and on-demand television, Uniacke still sees demand for video rentals.
“The introduction of 3D technology and the huge success of blockbuster movies such as Avatar and Alice in Wonderland will ensure people continue to go to the cinema and rent and buy movies,” he concluded.