Video Ezy offers net surfers free movies

By MICHAEL FOREMAN

Video rental chain Video Ezy has launched a new service that combines flat rate dial-up internet access with free new-release videos.

Dubbed Ezynet, the package bundles a free video voucher worth $8 each month with a $24.95 per month flat-rate account including up to five email addresses and 10Mb of website hosting space.

Video Ezy is 51 per cent owned by internet provider ihug which is providing the internet access infrastructure.

Video Ezy marketing manager Trudie Delves said the free video offer, worth $96 a year, was ongoing and there was "no problem" in ihug's existing flat rate customers switching to this account.

"Ihug realises that there are a percentage of customers who are entertainment orientated and will want to change."

The Ezynet website at www.ezynet.co.nz features information on new movies and sends e-mail updates to customers when new titles arrive. Video Ezy director Russell Clark said his company will not begin experimenting with online video ordering until the middle of next year.

But Mr Clark was aware that ihug in conjunction with The Source has been quietly testing home delivery in inner Auckland of internet ordered videos at www.emmediate.co.nz. Emmediate's site offers a choice of more than 5000 video titles as well as items such as pizzas and soft drinks.

At present the service is available only within 15 minutes drive of one location in Ponsonby, but according to emmediate's web site, it may extend to all 35 outlets of The Source in the future.

Mr Clark said the trials were very successful but he did not believe online ordering would pose a threat to Video Ezy's 122 bricks and mortar rental outlets.

"The public is definitely looking at the convenience of getting videos delivered at home but people will always want to go to the video shop. There's nothing quite like going into the shop and seeing the huge selection of videos."

While Mr Clark agreed that broadband internet services could be used to offer films directly to homes, he believed Hollywood studios would not allow video shops to be cut out.

"The business is worth $US20 billion to these guys. For them to tamper with that market to the detriment of video stores is something they would tackle with great trepidation."

Mr Clark said direct transmission of movies "would happen eventually" but would have to fit in the film studios' "window" system.

Under this system videos are released to rental outlets between three and six months after their cinematic release. Six months after that they appear on pay per view services and it is a further 12 months before they are released to paid subscription services.

"Internet delivered movies would have to fit in among those windows," said Mr Clark. "My guess would be about 18 months."