Video downloading in Australia sucks. We used to have Reeltime, but through a combination of factors it went bust. That leaves BigPond, which unless you're prepared to pay for Telstra's exorbitant broadband fees, just isn't worth the money.

A glimmer of hope was announced yesterday, with EzyDVD planning on launching a download service called EzyDownload in September this year. It will use the infrastructure left in place with the demise of Reeltime, but improved to work better.

They've also announced that they're working with ISPs around Australia to have their movie downloads counted outside of the cap limit, ensuring that customers don't have to pay twice for the same thing, which is one of the benefits of BigPond Movies for Telstra broadband users.

Of course, the biggest question will be surrounding content - they claim they'll have stuff from major Hollywood studios, independents and music companies for both download-to-rent and download-to-own. Having a decent library of titles will be imperative to success, as will price, which hasn't been announced yet.

The full press release is below the fold. We've got our fingers crossed that this will be the start of something good...

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Don't want to flog a dead horse, but if you're one of the few people buying up HD DVDs on the cheap, EzyDVD is selling movies cheaper than you can buy them on DVD. It's an exclusive offer for people who already bought bargain HD DVDs from them, but I don't think it will matter. It's also limited to 24 hours before it goes public, so get in early.

[EzyDVD]