It seems that when it comes to circumventing the new release delays imposed on it by several studios, Redbox may be having a little more trouble than it’s admitting. According to Richard Greenfield, an analyst with Pali Capital, the availability of select new release titles from Warner, Fox and Universal at Redbox kiosks is starting to wane.
The analyst cites Ice Age: Dawn of the Dinosaurs, Orphan, My Sister’s Keeper, Aliens in the Attic and Bruno as titles that have “underperformed in first week rentals at Redbox relative to the video rental industry as a whole”.
Greenfield believes that Redbox is acquiring most of the delayed titles from Walmart, the world’s largest DVD vendor. He estimates that Redbox purchases about 20 copies of each title per kiosk, meaning that it is buying approximately 22 million discs at retail for its more than 20,000 kiosks.
Greenfield admits that he’s not sure what the immediate impact of the delayed titles has on Redbox’s income, but he’s concerned about a potential scenario in which Redbox loses its suits against the embargoing studios. Says Greenfield:
“We believe over time disappointing consumers is unlikely to be a great business model, with blockbuster titles such as Warner’s Harry Potter and the Half-Blood Prince and The Hangover to be released in the weeks to come,”
Insiders, have you noticed a dwindling number of new release titles from the aforementioned studios at your local Redbox? Let us know your findings—and what area of the country you’re in—in the comments.
[via Home Media Magazine]