IDEA develops online rental, sale network for indie retailers

INDIE EXPO: Idea Net will use retailer's own branded site

By Susanne Ault -- Video Business, 7/16/2007

JULY 16 | LAS VEGAS—The Independent Dealers of Entertainment Assn. is launching an online network for small video stores to help them sharpen their businesses against growing online rivals.

During the 2007 Indie Expo on Monday, IDEA leaders presented plans for Idea Net, which will help indie rentailers offer customers online rentals and used and new video sales.

Tempus Technologies is building the Idea Net infrastructure with partner Screenplay.

Idea Net is slated to debut in beta form by the fall.

Indie retailers will use their own branded Web site, which Tempus can help develop, to communicate to their customers. Through the Idea Net technology engine, customers will be able to find out which titles are available to rent or buy at their local store.

Idea Net-enabled stores’ inventories will be updated online every 30 seconds, so customers can receive real-time knowledge of which titles are in stock. Titles that are bought or rented can be either picked up in-store or mailed to customers.

Idea Net creators, including IDEA members and Tempus, are surveying indie stores to determine the best policy for customer returns through the system. Customers could be given a choice of dropping off at a store or returning titles through the mail.

Additionally, Screenplay has built flexibility into Idea Net that will enable video store members to soon offer digital downloads. This way, Idea Net should stay relevant in the years to come. Screenplay is currently providing streaming film trailers for Idea Net members.

“We don’t want the indies to be left on the sidelines,” said Jason Sweitzer, president of Tempus, which has provided point-of-sale register systems for video stores for years. “Indies had their lunch eaten [by online retailers]. And we don’t want another lunch to be eaten by downloads.”

Stores that lack an online presence are losing out to sites that promise 24-hour accessibility. Web-based Netflix and Blockbuster Total Access have been steadily gaining subscribers since their respective bows.

“For indie video stores, this is one piece of convenience they can’t currently offer,” said IDEA chair Jim Loperfido, whose own store, Emerald City Video, has never had a Web presence. “We are in a changing environment. And smart retailers will understand that they need to change with it.”

Loperfido has pledged to join the Idea Net beta launch. During this year’s Home Media Expo, IDEA leaders and Tempus’ Sweitzer will be recruiting others. They are asking interested stores for a $150 deposit, which will ensure their spot in the program. That deposit will go toward upcoming Idea Net maintenance fees.

The goal at the show is to sign on 150 video stores to the Idea Net beta.

Tempus has not yet specified fees for Idea Net usage, but a monthly membership fee is likely.

Idea Net informational sessions will be held Tuesday and Wednesday during the Indie Expo portion of EMA.