DNA 2002 Plc, a media and entertainment distributor, plans to launch a video streaming service in the second quarter for its home-entertainment products to raise more revenue.

The service means consumers can watch movies over the internet without having to buy physical media such as DVDs and VCDs.

Managing director Samart Chuasiripattana said the company is spending 150 million baht to develop software for the new service.

It also plans to offer movie downloading for viewing from a personal video recorder (PVR), but has not finalised details on this matter.

DNA sells mainly Thai, Korean and Chinese films, as well as some Hollywood movies. Among its catalogue is China's top box-office film Lost in Thailand, as well as Resident Evil and Finding Nemo.

It will offer two packages: a buffet for unlimited streaming or downloads per month, and a per-movie fee.

"Teenagers and young people will be our target audience, as they are familiar with digital technology. The movie downloading service can help resolve piracy problems, because the cost will be cheaper than physical VCDs and DVDs," he said.

DNA holds the rights to only 2,000 movies, so its selection is not big enough for full commercial downloads. The company will partner with other content providers such as local movie studios.

Maker of smart TVs, tablets and smartphones will also be key partners to help the download service reach customers.

"We're looking for potential partners to do digital business together, providing both content and hardware," said Mr Samart.

New content is very attractive to mobile operators such as AIS Movie Store, which is a collaboration between AIS and local movie studios, including Sahamongkol Film International and GMM Tai Hub (GTH).

"The trend of entertainment consumption will gradually shift to the digital platform, as we've seen with Netflix, the world's leading subscription service for on-demand internet streaming media," said Mr Samart.

DNA expects its movie downloads will help grow its sales by 30-40% this year to 2.5 billion baht.

Meanwhile, sales of physical products remain the company's key revenue. DNA plans to open 300-350 new small counters this year, up from 1,432 branches nationwide now.

The company will continue its aggressive marketing to boost purchase value from 170 baht per bill on average.