3 online DVD service rivals merge

DVD Unlimited unites with Fatso, Movieshack

AUCKLAND — News Corp.-controlled satcaster Sky Television’s online DVD rental service, DVD Unlimited, has merged with its competitors, Fatso and Movieshack.

Sky CEO John Fellet, who didn’t reveal the financial details of the deal, said the home-delivered market was too small in this country of four million to support three businesses..

However, he stressed that the deal was a merger and not a Sky takeover.

“The market is tiny — about the size of a couple of Blockbusters and it will be getting smaller,” as new platforms emerge, said Fellet.

The new venture, called Screen Enterprises, will be headed by Fatso’s Rob Berman.

Sky has a virtual monopoly in pay TV and dominates most windows.