Video rental chain KPS Holdings says it welcomes the launch of video-on-demand (VOD) services in Hong Kong because it will broaden the market penetration of large movie rental stores.
However, the survival of small video rental shops will be jeopardised, according to Garrie Roman, co-founder and managing director of KPS.
Mr Roman said he was pleased to hear the new services announced by a consortium led by film distributor Mei Ah International to provide on-line video services to selected viewers.
'This helps the video industry because [the VOD providers] help to promote and advertise the movies,' he said.
'But the small rental shops will suffer a lot because they can't provide sufficient choice for the customers.' Hongkong Telecom Interactive Multimedia Services has also revealed plans to spend $300 million on films for its VOD service.
The number of movie video stores in Hong Kong has decreased from 720 in 1995 to 511 last year.
