Australian Video Rental Industry Caught Crying Wolf

Australian video rental industry caught crying wolf

The head of the Franchise Entertainment Group has undermined his own grim warnings about the impact of Coles' DVD promotions by revealing a rosy future for Australian DVD retailers.

In an on-line interview (Smart Company, 14 Jan), the Managing Director of the Franchise Entertainment Group (representing Video-Ezy and Blockbuster) Paul Uniacke has attacked an IBISWorld report claiming the video rental industry would decline by 3.7 percent.

Mr Uniacke is reported claiming 2010 industry revenue growth will be six percent, in line with 2009.

Says Mr Uniacke: "The first half of this year, we are looking at an absolute pearler. There is an absolute raft of brilliant product in the first six months. Big movies sell all movies."

Such comments are at odds with yesterday's claims that Coles' $9 promotional offer on the "UP" DVD would "have a profound effect on the long-term viability of the sector." (13 Jan media release: "Coles UPs its war against small business with cheap DVDs")

Coles is relieved that the industry has seemingly stabilized overnight and now looks forward to solid profits.

Coles' current DVD promotion, offering a copy of "UP" for nine dollars for shoppers purchasing $100 or more of groceries, has had strong response on it's first day, with over 10,000 units being sold.

Customers are clearly voting with their feet in favour of a better deal on DVDs.

The full interview can be viewed at:

http://www.smartcompany.com.au/retail/20100114-video-rental-entrepreneur-attacks-coles-over-massive-dvd-discount-promotion.html

Further information,

Jim Cooper
Ph (03) 9829 4354
Mob: 0438 588 619

SOURCE: Coles