HMV to launch on-demand film service

HMV is to launch an on-demand film service featuring titles such as Harry Potter and The X-Men, as the embattled retailer turns to digital channels to counter slumping in-store sales.

HMV has partnered with FilmFlex, the video-on-demand rental service joint venture between Sony Pictures Television and The Walt Disney Company, to launch the new service called hmvon-demand.

The service – which will offer titles from more than 30 distributors, including all of the major Hollywood studios – is soft launching on Thursday.

HMV is the latest company to look to cash in on the increasing demand for digital film services, joining rivals such as Amazon's LoveFilm, Tesco's BlinkBox, Google's YouTube. US online video service Netflix is also launching in the UK and Ireland early in 2012.

The music retailer, which has closed almost 30 stores in the past few months in response to a 15% sales slump, is planning a major marketing campaign for January across its store network as well as online and in advertising.

FilmFlex offers a white label service – partners such as Channel 4's Film4 service have launched their own branded movies-on-demand offering – using an online rental model.

HMV said that the new film service will be available via PCs, with plans to expand to other digital devices, with models including download-to-own and cloud-based locker services also in the works.

"With a growing number of consumers now incorporating video-on-demand into their viewing and purchasing habits, the time is right to include a digital service into our own offer," said Mark Hodgkinson, marketing and e-commerce director at HMV.

Jeff Henry, the former ITV and Hallmark Channel senior executive, was appointed as chief executive of FilmFlex's European operation in July.

"Our deal with HMV illustrates perfectly the benefit of combining their well-known brand and high traffic volumes with our own expertise in technology and content," said Henry.