Move over, Blockbuster. You’re not the only B&M rental chain being decimated by Redbox, Netflix and VOD. Movie Gallery, the second largest video rental chain in North America, has announced that it may be closing as many as 200 stores by the end of 2009. These closings will be in addition to the 250 Movie Gallery and Hollywood Video (which it owns) locations that the company has already closed this year. In aggregate, the 450 shuttered stores would represent about 14% of the company’s total locations.
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Archive for October, 2009
Netflix appears to be slowly putting the pieces in place for a post-DVD, streaming dominated model. After announcing just a few days ago that its movie streaming service will soon be available on the Playstation 3 game console, it now looks like Netflix streaming will also be coming to the Nintendo Wii.
Streaming media analyst Dan Rayburn says that, according to a source of his that is ” involved in the project”, Nintendo and Netflix are currently engaged in testing the streaming service that will arrive on the Wii “very shortly.”
Registered Redbox email list members might have noticed an interesting ad in the email sent out this Tuesday. In the email, a large ad filling the right sidebar proclaims, “Rent The Proposal And Get $5 Off When You Buy It On DVD”.
While the details of the offer are not specified in the ad, and clicking the link currently just takes you to Redbox’s home page, it is nonetheless fascinating to see a major studio testing this type of promotion. Read the rest of this entry »
Redbox.com has recently been updated with some welcome changes that should make using the site a bit easier and more useful.
New Location Finder
Probably one of my least favorite parts of Redbox.com was their location finder and map. Many others have shared their frustrations with this as well, and Redbox has made some great improvements.
After having been the plaintiff for so long in its suits against several Hollywood studios, Redbox now gets to wear the “defendant” hat. The kiosk operator is the subject of a class-action lawsuit claiming that Redbox has illegally collected $100 million in fees from customers who kept films for longer than a day.
Hot on the heels of yesterday’s commentary on customer choice from Mitch Lowe, we have some more insights from the head of Redbox. In a recent Q&A session with Forbes, when asked if some studios are behaving emotionally and irrationally by trying to cut off Redbox’s access to new releases, Lowe concurred with that assessment:
“Historically, they have been [acting emotionally and irrationally]. I dare them to show that we’re cannibalizing their sales. Not one studio has gone public with any proof of that. They just assume that renting at a low cost hurts their sales.”
As we have mentioned on this site previously, the typical Redbox kiosk can hold around 600 discs but usually carries fewer than 200 unique titles. This is the result of a decision, according to Redbox CEO Mitch Lowe, to limit consumer choices by stocking kiosks with a narrow range of titles. Lowe says the decision was made after experiments were conducted offering a wider variety of titles, including classic and foreign films.
We’ve already heard about at least one major studio putting the squeeze on Netflix to obtain more favorable terms. Now it appears that something more wide-reaching is afoot. According to the Los Angeles Times, several unnamed major studios are considering a new policy that would impose a moratorium on ALL DVD rentals for the first few weeks a title is available for sale. The plan’s obvious aim would be to push more consumers into purchasing titles, a transaction that is much more profitable for studios than a rental. Studio sources consulted for the story stated that “such plans were under consideration and probably would take effect next year.
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As Redbox’s antitrust case against several major studios slowly progresses, it’s only natural to think ahead to possible outcomes and wonder what the future may hold for the kiosk vendor. If worst comes to worst and Redbox’s suits are dismissed or it loses in court, what then?
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The following are some hypothetical solutions that Redbox could implement to cope with having a large percentage of the major studios’ titles denied to it for 30-45 days after release.
Here is your list of movies coming to Redbox this next week. Be aware that some movies like Ice Age 3 and Orphan may be delayed a few days in your area.
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Enjoy!
Coming to America Starring: Arsenio Hall,Eddie Murphy,James Earl Jones
Genre: redbox Replay
Release Year: 1988
movie details / trailer
Echelon Conspiracy Starring: Edward Burns,Ving Rhames,Shane West
Genre:
Release Year: 2009
movie details / trailer
Ice Age 3: Dawn of the Dinosaurs Starring: Ray Romano (v),Queen Latifah (v)
Genre:
Release Year: 2009
movie details / trailer
Jesse Stone: Death in Paradise (2006) Starring: Tom Selleck,Viola Davis,Vito Rezza
Genre: Drama,redbox Replay,Crime
Release Year: 2006
movie details / trailer
Maiden Heist Starring: Christopher Walken,Morgan Freeman
Genre:
Release Year: 2008
movie details / trailer
Nothing Like the Holidays Starring: Debra Messing,John Leguizamo
Genre:
Release Year: 2008
movie details / trailer
Orphan Starring: Peter Sarsgaard,Vera Farmiga,Isabelle Fuhrman
Genre:
Release Year: 2009
movie details / trailer
Road Trip: Beer Pong Starring: Preston Jones,Michael Trotter
Genre:
Release Year: 2009
movie details / trailer
Tinker Bell And The Lost Treasure Starring: Lucy Liu,Mae Whitman,Jesse McCartney
Genre:
Release Year: 2009
movie details / trailer
Trading Places (1983) Starring: Dan Aykroyd,Eddie Murphy,Jamie Lee Curtis
Genre: redbox Replay
Release Year: 1983
movie details / trailer
Whatever Works Starring: Evan Rachel Wood,Larry David
Genre:
Release Year: 2009
movie details / trailer
