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Even as his company readies its digital delivery plan for release later this year, Paul Davis, CEO of Redbox parent Coinstar, says that physical discs aren’t anywhere near their swan song. Davis also said that nearly one-in-five Redbox locations across the country will have multiple kiosks by year’s end.

Speaking at the Technology Leadership Forum in Vail, Davis said the following on physical media:

“Today, by far, the preferred medium [for rental] is physical DVD . . . We think we’re well-positioned for a much longer tail than some predict.”

Davis also believes that there is “still a lot of white space for the kiosk footprint nationwide,” and he thinks rival NCR will reach its goal of 10,000 installed Blockbuster Express kiosks in 2010.

How much life does the venerable DVD have left in it, Insiders?
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Will Redbox’s upcoming digital delivery plan quickly outpace the physical discs that have been the company’s bread and butter for so long?
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(via Home Media Magazine)

12 Responses to “Coinstar CEO: DVD Still Preferred Rental Medium”

  1. Visitor [Join Now]
    Vernon Dent [visitor]

    “Today, by far, the preferred medium [for rental] is physical DVD . . . We think we’re well-positioned for a much longer tail than some predict.”

    All predictions are usually wrong!

    This tail is about to be cut off. Yes DVD rental will continue in the same way that audiophiles and DJs still buy vinyl. However, as history shows, once a newer disseminating vehicle arrives [via the INTERNET 2 initiative] all previous vehicles begin a swan song.

    Of course the world will end in 2012 anyway, if you believe the Mayans ;).

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      If priced at quarter to half of ppv or Internet vod then I think consumers will vote to have packaged media be around well past 2012. If Internet vod and ppv were cheaper and ubiquitous systems then the demise of the DVD would be assured. There are literally hundreds of on demand menus but only one way to use a DVD. Consumers inherently understand this.

  2. Visitor [Join Now]
    Rojas [visitor]

    I was thinking how long would the 5 inch disc work for movie rentals, I remember renting movies on Beta,VHS, Laserdisc and RCA CED.
    these companies are investing a lot of money into these DVD kiosk machines.
    you never know what new format will pop up next.

  3. Visitor [Join Now]
    John Small [visitor]

    With Redbox continuing to devalue the rental disc, the studios have no choice but to ramp up other streams of income.

    Coinstar is digging their own grave and filling it in behind them.

    • Visitor [Join Now]
      firstlawofnature [visitor]

      No other trends besides kiosks causing deflation in rental discs? Surely redbox isn’t the only reason this is happening.

  4. Member [Join Now]
    ChadCronin [chadcronin]

    The main reason I still prefer Discs is because the bit rates are much better than cable, VOD or download

  5. Visitor [Join Now]
    Jamie [visitor]

    As more people buy TVs and DVD/Blu/game consoles that have an internet connection, the more we will see the transition from disc to on demand.

    The one big advantage of discs right now is the picture and sound quality is still superior to what is streamed.

  6. Member [Join Now]

    I think that people will still rent DVD for years to come, mainly because they don’t have Blu-Ray (like me), they don’t see the point in Blu-Ray (like me), or they want to save an extra .50 (or more depending on where you rent your movies)

  7. Visitor [Join Now]
    crazy_noodle [visitor]

    I don’t think the tail of DVD will go away until Blu-Ray discs drop in price by about $10, I don’t think the rental market will make BD take over DVDs. There are too many people out there who would rather rent a movie than pay $25 for it. DVDs are expensive enough, the cost for Blu-Ray is probably close to a DVD. I don’t yet have a Blu-Ray player they were too expensive and lately I get everything on TV/Redbox/Netflix so I am ok with no HD on movies.

  8. Member [Join Now]
    MovieWatcherSupreme [moviewatchersupreme]

    I have faith in the DVD format. Among other reasons it is a solid format. Substantially better than anything before it, and thanks to digital has no generation loss. There is no funky confusion like there was between VHS and BETA, and comes in a small, reasonably durable package. Ease of use is also good. Really before Blu-Ray there were no cons to the DVD format. When it comes to Blu-Ray, yeah it’s cool but you need to fork out a great deal of money to really experience it to its full extent. Expensive Discs, expensive player, expensive TV, expensive Sound System. Everything about Blu-Ray is expensive. Until that changes drastically, the DVD will stay strong.

    It’s funny, both DVD and Blu-Ray are forms of a Digital Video Disc, so you could call a Blu-Ray a DVD technically. LOL, random I know but that just popped in my head.

    • Member [Join Now]

      That is a good point.

      BTW: One of the few things that I see that makes Blu-Ray good is that the discs are harder to scratch up.

      HD DVD anyone? XD

  9. Visitor [Join Now]
    Avis Burkham [visitor]

    well im defo getting this aa we’ve not had a decent transformers game since the ps2, check out you tube,theres a fan made g1 prime, its flipping awesome, this guy loves his transformers!!!