Video Ezy: The Rise and Fall of an Australian Rental Giant
Video Ezy, an Australian video rental chain, began operations in 1983 and expanded to over 500 stores by the mid-2000s. Its eventual decline was significantly influenced by the emergence of streaming services.
Early Operations and Expansion
Founded by Kevin Slater in Hurstville, Sydney, in 1983, Video Ezy swiftly became a franchise in 1984. It expanded across Australia and internationally, opening its first New Zealand location in the late 1980s.
In the late 1990s, Video Ezy partnered with Malaysian conglomerate Berjaya Group to launch in Malaysia (1997), Thailand (1999), and Singapore (2001).
By 1999, Video Ezy reported approximately $250 million in annual turnover with 571 stores across four countries, marking its peak expansion.
GST Controversy
In May 2000, the Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against Video Ezy, alleging price exploitation. The ACCC claimed that in 21 of its 33 corporate stores, Video Ezy unlawfully increased film prices in anticipation of the Goods and Services Tax (GST) introduction. This was done to leverage customer uncertainty and achieve a $7.00 price point.
In April, Video Ezy acknowledged the issues and agreed to Federal Court orders. These orders included reducing prices for new releases to $6.45 or below, providing free overnight rentals to affected customers, and contributing to the ACCC’s legal costs.
Strategic Moves and Competition
In 2004, Video Ezy launched 'DVD Unlimited,' a subscription service that allowed customers to rent multiple movies for a monthly fee without late charges. This model was directly inspired by Netflix, signaling an early attempt to adapt to changing consumer habits.
In February 2007, Video Ezy acquired the Australian master franchise rights for its competitor, Blockbuster, a deal that included 29 company-operated and 341 franchisee stores. Despite growing concerns about piracy and digital downloads, then-managing director Paul Uniacke diversified into DVD kiosks as a future strategy, attempting to pivot in a challenging market.
Impact of Streaming Services
The launch of Netflix in Australia in March 2015 significantly impacted the video rental market, attracting over 1 million users within just three months. Subsequent years saw the entry of other major streaming platforms from companies like Disney, Apple, and Amazon, intensifying market competition.
The number of video rental stores in Australia decreased dramatically from 750 at the end of 2018 to fewer than 40 by April 2019, illustrating the profound shift.
Final Closure
The COVID-19 pandemic ultimately contributed to Video Ezy's final closure. A reduction in new Hollywood movie releases and pandemic-related operational restrictions led to the cessation of its kiosk operations.
In March 2021, Evolve Entertainment, the company operating Video Ezy’s surviving kiosks, entered liquidation. The Video Ezy name was officially deregistered on January 30, 2024, concluding its 41-year operational history.