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graduation_capParamount Home Entertainment’s recent extension of its trial deal with Redbox was an astute decision, even if it may not be in the best interests of Hollywood at large. So says Richard Greenfield, an analyst with Pali Capital. One major reason for Greenfield’s assessment is the fact that as part of the agreement, Redbox is obiligated to showcase films that failed at the box office, which can help Paramount recoup its investment.

Citing Imagine That, which earned just $16 million during its theatrical run, Greenfield noted that the film was the number two Redbox rental during the week of its release in early October. The film did not even reach the top five in sell-through new releases that week.

Greenfield also noted that even if Redbox loses its legal battle against the Hollywood Three in 2010, Paramount’s earnings will “blossom in the interim despite its association with kiosks not appearing to be ‘in the movie industry’s best interests'”.

With Paramount having several more films (The Lovely Bones and Up in the Air) that may see greater success in rental kiosks than in theaters, what do you think the future is looking like for Paramount’s still-fragile relationship with Redbox? Give us your predictions in the comments.

[via Home Media Magazine]

4 Responses to “Analyst: Redbox Deal Extension a Smart Move for Paramount”

  1. Visitor [Join Now]
    Joe Schmuck [visitor]

    Greenfield said:

    “Citing Imagine That, which earned just $16 million during its theatrical run, Greenfield noted that the film was the number two Redbox rental during the week of its release in early October. The film did not even reach the top five in sell-through new releases that week.”

    Of course it didn’t make the top in sell-through releases that week. It was released as rental only for 6 weeks. It wasn’t even available for sell-through until late November.

    What an ANALyst Greenfield is!!!!!!!!!!

  2. Visitor [Join Now]
    Halfassreporting [visitor]

    I like how you leave the part of the article out that says that this gives paramount the option of windowing redbox if the other studios prevail in litigation. Which is the whole reason they put the June opt out in. I guess you do want to sugarcoat it though like this is a great deal. Alls this deal does is let’s paramount dump of their junk titles in the first part of the year and protect the big hits in 2010. Don’t for a second think that if the other studios get their windows that paramount isn’t going to jump ship that’s the whole purpose of the opt outs.

    • Visitor [Join Now]
      RunninWild [visitor]

      Im sure they will Half…but go to boxofficemojo.com and look up the BIG HITS you’re talking about in 2010….OUCH! NOTHING THERE besides maybe Lovely Bones and Up in the Air. All the other stuff is Dreamworks animated, and they LOVE redbox (so says their CEO)

      • Visitor [Join Now]
        Joe Schmuck [visitor]

        RunninWild [visitor]
        0 0December 20, 2009 at 7:58 pm
        Im sure they will Half…but go to boxofficemojo.com and look up the BIG HITS you’re talking about in 2010….OUCH! NOTHING THERE besides maybe Lovely Bones and Up in the Air. All the other stuff is Dreamworks animated, and they LOVE redbox (so says their CEO)

        NEITHER ONE OF THOSE TITLES WILL MAKE IN EXCESS OF $25 MILLION AT THE BOX OFFICE.