Redbox Tagged Articles at Cinematical
Could $1 Redbox Rentals Cripple iTunes?
Filed under: Distribution », Home Entertainment »
Redbox continues to frighten other established movie-rental venues, as two new studies indicate that the kiosks are having a huge impact on the home video industry. Last week, Variety reported that a study by the research company NPD estimates that Redbox, who plan to add to their over 15,000 kiosks with additional boxes in grocery and convenience stores, will own 30 percent of the rental market by the end of next year. Currently, mail-order services like Netflix control 36 percent of the market, while traditional video chains like Blockbuster still drive the market with a 45 percent share.The fast growth of the company, which is owned jointly by Coinstar Inc. and a subsidiary of McDonalds, is making the studios very nervous. As reported here previously, Lionsgate, Sony, Disney and Paramount have all cut deals with Redbox, but the company was forced to sue Universal and 20th Century Fox when those studios attempted to strong-arm Redbox into signing a deal that would limit the rental company's distribution and kick profits back to the studios.
Half a Billion Reasons Why Studios Are Threatened by Redbox
Filed under: Distribution », Home Entertainment »
You wouldn't know it to look at them, but those red vending machines full of DVDs -- you know, the ones sitting outside McDonalds -- may be the biggest threat to the big box video stores since Netflix. Redbox has announced that they'll be renting their half billionth DVD this week, just five years after they debuted with 12 kiosks in Denver, Colorado. Now boasting over 15,000 locations in 48 states, the convenience and low prices -- Redbox charges a flat $1 per day fee per disc -- have made them a major player in the video rental industry.
And the studios that produce the DVDs are split on whether or not that's a good thing.
Back in October 2008, Redbox, which is jointly owned by Coinstar and a subsidiary of McDonalds, filed a lawsuit against Universal Studios, alleging that the entertainment giant was abusing copyright and engaging in anti-competitive behavior. Universal had tried to force Redbox, who buy their discs from wholesalers, to sign the same sort of revenue-sharing deal that the big studios have with Blockbuster and Netflix. The deal would have limited Redbox's ability to resell used discs, decreased the number of DVDs available for rent, and taken a cut of their profits, to boot. Redbox understandably said no.
When Redbox declined to sign, Universal threatened to cut off the wholesalers who sell to Redbox, and to place a 45-day wait on the availability of new titles. This is, simply put, illegal. It's a violation of antitrust laws. So Redbox sued.
Studios Say: 'No Cheap Movie Rentals For You'
Filed under: Disney », Lionsgate Films », Sony », Universal », Distribution », 20th Century Fox », Home Entertainment »
In an apparent effort to stem the tide of consumer interest in their movies, 20th Century Fox has decided not to make their new releases available to a large, legitimate DVD rental retail operation. Reason? They're not charging enough.
That's the message I get from reading an article at Company Town, a Los Angeles Times blog. Reportedly, Fox "has instructed its DVD wholesalers not to sell discs to Redbox -- which is owned by Coinstar Inc. -- or other DVD kiosk companies until 30 days after they are released." Fox is not alone among Hollywood studios. "Many studios are wary of Redbox, whose business has doubled in the last year, because its kiosks rent out DVDs for just $1 per night. That undercuts stores with higher rental prices, Netflix and disc sales." Universal Studios is involved in a legal case with Redbox because the studio wants a 45-day window. However, EngadgetHD notes that Disney, Lions Gate, and Sony have agreed to deals with Redbox.
With DVD sales down, studios want to maximum their revenues from every source and, to be fair, waiting 30-45 days to be able to rent a movie for $1.00 doesn't seem unreasonable to me. But, though the big red machines have popped up outside convenience stores in my neighborhood, I haven't tried them out yet. Have you? Does it work as advertised? Are you a repeat customer? Why you do rent from Redbox rather than Blockbuster, Netflix, or your local video store? What's the biggest determining factor for you: price, selection, or convenience?
Is Taylor Lautner Our Next Superhero?
100 Greatest Films Beyond the Canon
'Entourage' Movie in the Works?
Spielberg Backs Out of 'Harvey'
Discuss: Should Gay Actors Stay in the Closet?
_thumbnail.jpg)
_thumbnail.jpg)
