Video Ezy - History

History

Video Ezy commenced trading in 1983, when Robert Maidment opened his first store in the Sydney suburb of Hurstville renting out a small selection of VHS format movies. Expansion followed throughout New South Wales and other Australian states before opening its first international location in Auckland, New Zealand in 1988, with the Master Licence commencing in 1991. In March 1999, Video Ezy Australasia Pty Ltd expanded into the Asian market with its first outlet opening in Bangkok, Thailand.

In late 2000, Video Ezy introduced EzyRetail, a video store specific point of sale Windows-based system exclusively used by Video Ezy. The software was first developed by Radek Soucek and Robert Gongorra and allowed information to be centrally created and pushed down the line to stores, both as real-time and locally stored data. It provided comprehensive reporting capabilities, inventory management and collection abilities, giving the store network one of the most comprehensive databases in retail history. This new system replaced VideoMinder, a then DOS-based system once used by Blockbuster and some older Video Ezy franchisees.

In 2003, Video Ezy sold its corporate stores in Australia leaving only 2 stores - Narellan and Rosehill, some 10 minutes from its new Head Office at Rhodes - although in 2006 it had acquired additional corporate stores. In 2003 Video Ezy also went on to market a subscription model with DVD Unlimited (not associated with the New Zealand company with the same name).

In August 2005, business partners, Paul Uniacke and Edward Nedelko, who between them owned 24 Video Ezy franchises in Victoria purchased the shares held in Video Ezy Australasia Pty Ltd by Perpetual Trustees and Ivany Investments to become majority shareholders in the company. At that stage Video Ezy-branded outlets numbered, 560 in Australia, 156 in New Zealand, 128 in Thailand, 135 in Indonesia, 19 in Singapore, 9 in Malaysia, 1 in Fiji and 1 in the United Arab Emirates.

In February 2007, Blockbuster, seeking to rationalise its international operations and concentrate on the United States market, sold its entire Australian store network to Video Ezy Australasia Pty Ltd. At the time, Blockbuster Australia comprised 370 outlets nationwide - 29 owned by the company and 341 owned by franchisees. Video Ezy had 518 Australian outlets, all of them being owned by franchisees, pushing the combined group's market share to 40% of the country's video rental sector. Video Ezy committed to the master franchise agreement with Blockbuster for 10 years operating the brand with the possibility of renewal for a further 10 years after that. As a consequence of the deal, the company changed its name from Video Ezy Australasia Pty Ltd to Franchise Entertainment Group.

In January 2009, Franchise Entertainment Group bought failed video retail (non-rental) chain, EzyDVD from receivers, Ferrier Hodgson, for an estimated $10 million. The transaction included, the EzyDVD brand and online business, the 25-store franchise network, in addition to stock, plant, equipment and the remaining 11 company-owned stores. FEG CEO Paul Uniacke said to the media after the deal, "We don't have video rental stores in high-traffic areas such as the major malls because you can't rent a DVD and the next day just easily park your car and return to it. The EzyDVD stores are in all the major mall chains and this cements us well and truly in this market." Soon after, EzyDVD's head office, warehouse and distribution facility in Torrensville closed, and currently (as of October 2012), only 3 branded stores remain in Launceston, Browns Plains and Elizabeth. Most of its sales are now generated from the website.

In May 2011, a new loyalty card branded as, Flash Rewards, was introduced by Video Ezy (superseding DVD Unlimited), offering customers who sign-up and pay a fee discounts and extended services in all participating Video Ezy stores. This allows customers to upgrade their basic rental membership, with Paul Uniacke adding, "when someone joins Flash Rewards, they can then rent from any participating Video Ezy store and access their Flash benefits without the need to sign up with each store every time." In addition, Flash Rewards offers discounts from partner companies such as, Donut King, Eagle Boys Pizza, AMF Bowling, Anytime Fitness, ACP Magazines, and 25% off cinema ticket prices at, Village Cinemas, Event Cinemas/Greater Union, Hoyts, Reading Cinemas, Wallis Cinemas, Dendy, and Palace Cinemas.

In June 2011, a select group of Video Ezy/Blockbuster franchises incorporated Metcash's Lucky 7 convenience stores stocking more than 500 different products including, newspapers, bread, milk and various snacks. If deemed successful, Lucky 7 could roll out nationally across Video Ezy and Blockbuster's 650 store network.

In October 2011, it was announced that former chief executive of Video Ezy and their largest franchisee, Daryl McCormack, would partner his 15 stores with Franchised Food Company's Cold Rock Ice Creamery to open smaller, Express oulets within stores becoming dual franchises. The first Video Ezy/Cold Rock Express outlet reopened in Kew, Melbourne, to dollar-for-dollar sales with the core business of video rental and retail. This concept has also extended to McCormack's co-owned chain, Souvlaki Hut, with point-of-sale systems being updated to combine sales from both video and ice cream, or souvlaki meals and ice cream. Like the Lucky 7 deal before it, Franchised Food Company is offering Cold Rock Express outlets to other Video Ezy/Blockbuster franchisees wishing to diversify their business.

In November 2011, Video Ezy found itself embroiled in a social media backlash when it refused to end its long-term sponsorship with Southern Cross Austereo's networked radio program, Take40 Australia, after (then) co-host, Kyle Sandilands made sexist comments about a News Limited journalist on his 2Day FM breakfast program, The Kyle and Jackie O Show. Even though the comments were made on another program and Video Ezy having the added complication of being a naming-rights sponsor of Take40 Australia, complaints piled up on its Facebook page to such an extent that after a month the brand was forced to pull advertising from the show temporarily during the summer. In August 2012, Video Ezy renewed their sponsorship of the program until at least March 2013.

In December 2011, Franchise Entertainment Group switched on its first Video Ezy Express DVD and Blu-ray rental kiosk after announcing their roll-out in May that year. FEG bought 1,000 DVD kiosks through US company, NCR Corporation for $2 million with Uniacke adding, "we're looking to get to 3,000 within three years. I'm looking to own the market within a two-year period." Video Ezy Express kiosks can be purchased from FEG by local Video Ezy/Blockbuster franchisees and located in high foot-traffic areas like shopping centres and supermarkets. For these franchisees, overheads are low as rent for 2m×2m blocks of space is significantly less than shops with large floor space. There are no staff wages to pay and once the system is set up, they are self-sufficient. For consumers, prices to rent are much lower, no membership cards are required, there are no late fees (just a nightly flat rate), and DVDs and Blu-rays can be returned to any kiosk machine nationwide. Video Ezy Express competes in Australia and New Zealand with the 300+ Hoyts Kiosk network and approximately 100 RedRoom kiosks, however, FEG acquired the entire business of the seven-year-old RedRoom in the same month, taking out a significant competitor while adding capacity.