Coinstar CEO Paul Davis recently spoke at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco and gave his take on a number of important topics. Some of the items Davis covered included the possibility of other studios following Warner’s lead on delay windows, anticipated Redbox growth for 2010 and how much a title’s box office success will factor into its availability in kiosks. The highlights are after the jump.
Davis on whether smaller titles might not be windowed at Redbox kiosks
“Some of the studios we’ve had discussions with — and you shouldn’t read into that that it’s Warner— they might want a window on their big theatrical releases, the ones doing over $100 million, yet not have a window on their lower volume releases . . . You might see a mixture of windows, depending on the studio.”
Davis on the recent accord between Redbox and Warner and whether other studios will follow
“It stabilized our supply chain in many ways . . . Will there be some studios that will want a window? I suspect that’s quite possible . . . Though I think it’s too big a leap to say everyone will move to that. I think time will tell in the next 12 months.”
Davis on Redbox’s potential growth
Davis plans on Redbox reaching 30,000 kiosks by year’s end, and foresees that number eventually climbing to 40-60,000, depending on the number of traditional stores that remain open.
“The wild card depends upon what happens relative to the closure of the brick and mortar stores,”
Davis on Redbox’s conversion of non-renters to renters
“[20% of Redbox customers] weren’t even in the rental pool to begin with . . . They simply did not rent,”
Davis on the likelihood of other media becoming widely available at Redbox kiosks
Redbox’s expansion of its video game rentals is being held up by system issues, said Davis. He also said that Blu-ray Disc and Blu-ray 3D “will present options for pricing higher than $1 a night”.
“We’re very careful with big moves on pricing,”
(via Home Media Magazine)