ON-DEMAND MOVIES PREMIERE IN WICHITA
he next time Chris Buser decides to rent a movie, she'll be able to do it from the comfort of her living room -- and watch it within minutes, whenever she wants.
On-demand movie rental is now playing in Wichita.
"I think it's every bit as cheap as Blockbuster, and you don't have to run to and from the store," said Buser, a retiree and longtime Wichita resident.
Since November, the area's two biggest providers of Internet service, Cox Communications and AT&T, have begun offering on-demand movies and other content for viewing on television.
On-demand service is similar to pay-per-view but allows viewers to watch selected movies, TV shows and other programs when they want to, rather than at scheduled times. Some content is included with base subscription fees; recent movie releases and some other offerings carry additional charges.
Most observers expect on-demand service to change the face of the $24 billion-a-year home entertainment industry. But how big the change will be, and when it will take place, is uncertain.
AT&T launched its Homezone on-demand service in Wichita on Nov. 1. The $9.95 monthly fee includes a set-top box that connects a customer's TV to Internet content. Customers choose from a variety of broadband-speed and satellite-TV packages, starting at about $45 a month. Movies can also be rented on an individual basis from Movielink.
Cox rolled out its On Demand service Dec. 28, giving subscribers access through their existing digital cable boxes. There's no additional fee for the on-demand service except for the rental fee for certain movies and other content. At any one time, about 1,300 hours of on-demand content is available, about 450 of it free.
AT&T and Cox say customer response has been good.
"We don't share specific customer-use statistics, but it has proved to be a popular item," AT&T spokesman Don Brown said.
"This is just another option," Cox spokeswoman Sarah Kauffman said. "They (customers) want to be able to have a choice."
On the other hand, few people expect the traditional video store to disappear overnight as a result.
Amy Rush, district manager for the Family Video chain, said video stores have weathered challenges from other on-demand content providers, satellite dishes, Netflix and other entertainment options before. Netflix mails DVDs to customers who order them online.
"I think people are always going to want to go to the store and actually touch the (video) boxes," she said.
Rush said video stores tend to have more movies, newer movies and cheaper movies than on-demand services.
For instance, a typical Family Video store has 15,000 to 25,000 titles; Cox boasts of "more than 275 hours" of movies available on demand. Several movies being touted as new releases by Cox and AT&T first appeared in video stores in November. And Family Video stores feature a section of movies that can be rented 2-for-$1, whereas the cheapest on-demand rental is $1.99.
Joe Malugen, chairman of the Movie Gallery chain, which also owns Hollywood Video stores, echoed Rush's comments in a statement, adding, "The Internet remains an attractive alternative only for a small percentage of movie renters."
Dillons recently decided to close the video shops in two of its busiest stores -- Central and Rock Road, and 135th West and Maple. But spokeswoman Sheila Lowrie said the move was designed to "make way for new and exciting departments," not in response to competition in the movie rental business. She noted that video shops will remain open in 10 Wichita-area Dillons.
Buser learned about Cox's on-demand service shortly after she and her husband bought a high-definition TV for Christmas.
She has used the on-demand option to watch shows on the History and E channels, at no extra charge. She's also scanned through the preview feature for new movie releases and figures she'll rent one eventually. In addition to the convenience, she figures the service has at least one advantage over the traditional video store.
"When I go to Blockbuster, invariably the one I want to rent is the one they're sold out of," she said. But with on-demand movies, "You don't have to worry it's out."
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