Sky TV is to build its online movie rental business by acquisition, buying up Nelson operator DVD Unlimited for an undisclosed sum.
The pay-TV operator intends to use DVD Unlimited's existing customer base and business model to offer a DVD mail-out service that will put it on an equalfooting with video store chains such as Blockbuster and Video Ezy and rival online operations Fatso.co.nz and Movieshack.co.nz.
Subscribers of DVD Unlimited pay a set monthly fee and receive a number of DVDs in the mail which are posted back after use.
They organise their membership and choose DVDs through a website.
Sky says its intention now is to "operate the most comprehensive DVD library in Australasia", with the type of service Netflix.com has built up in the United States.
Sky spokesman Tony O'Brien said the purchase price would not be disclosed.
For DVD Unlimited founder Sandra Webster, the sale ends a short but well-timed foray into the online movie rental business.
She formed DVD Unlimited just last year. But with at least two similar operators in the market, there was always going to be some consolidation.
Webster was unavailable for comment but in a statement said the sale gave her and her family the "opportunity to pursue other interests".
