KEY POINTS:
SYDNEY - Grocery giant Woolworths Ltd is set to become the first major retailer to enter the online movie rental market by joining up with online DVD rental service Quickflix.
Woolworth's Big W division will launch a dedicated website within weeks that will allow its customers to rent more than 25,000 movies and TV series.
Quickflix managing director Stephen Langsford said the agreement would help spread the booming online DVD rental service into the mass market.
"We are delighted to be partnering with Big W to offer an online DVD rental service," he said.
Mr Langsford described the deal as a first for a major local retailer.
"We think can emulate the huge success similar overseas partnerships have achieved in recent years," he said.
UK retail giant Tesco entered into a similar service in 2004, partnering with Europe's largest online rental provider Lovefilm, which has snatched about 20 per cent of the UK DVD rental market.
Big W merchandise manager for home entertainment Charles Davey said the Quickflix partnership would strengthen Big W's existing online presence due to the popularity of the online rental market.
"We're excited about adding the revolutionary online DVD rental service to our offerings," he said.
"It provides yet another way people can rent their favourite movies without leaving their home and as such will continue to drive traffic to our website."
A monthly subscription costs A$9.95 ($11.25) a month, and DVD's are mailed to th customer, once they watch the film the post it back in the provided prepaid envelope, Quickflix said.
With 140 Big W stores across Australia, the agreement between the two parties also includes in store advertising and cross promotions with products such as DVD players.
- AAP
