Blockbuster Australia: Greedy Studios Killing Video Download Business

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    • Nov 2001
    • 8954

    Blockbuster Australia: Greedy Studios Killing Video Download Business

    The head of the Video Ezy and Blockbuster video rental chain in Australia, Paul Uniacke, has slammed greedy Hollywood studios for killing the video download and on demand business.

    Blockbuster Australia had previously had an agreement with TiVo to supply video on demand content in Australia, but that agreement had to be unwound last week and Blockbuster is blaming Hollywood studios for this setback.

    "Studio greed is what's holding back video-on-demand," said Uniacke, "Movie studios are still as arrogant as the music moguls were before digital downloads and piracy destroyed them. The only thing that's protecting the movie studios (from more widespread illegal downloading) now is file size."

    Studios are demanding as much as 70% of digital rental fees, and that's too much for video-on-demand operators like Blockbuster.

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