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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)

5 Responses to “Coinstar CEO: Multiple New Release Windows Possible”

  1. Member [Join Now]
    ChadCronin [chadcronin]

    They better be careful on pricing. I don’t see why they have to charge more for Blu-ray. I think it’s more of an excuse to get the price up higher than a dollar. I Would pay $1.50 and maybe $2, but if they raised prices again after that anytime in the next 3 years or so I would be pretty upset. Step one though is for them to roll out having Blu-ray in every Kiosk.

    • Member [Join Now]
      MovieWatcherSupreme [moviewatchersupreme]

      Well when you think about it, Blu-ray and Blu-ray 3d or any higher echelon of media should have a higher price. Not much higher, granted; but like you said within range of 1$. For example Blu-ray cost slightly more to manufacture, and more for the production company to mount films on it (on a very large scale I mean). Beyond that release and retailing and all that jazz is the same cost as a DVD. That is why purchasing Blu-ray’s anywhere also cost more, not just because in HD, The movie was shot in HD to begin with, it isn’t like they take a DVD and scale it up. Hopefully the higher pricing of Blu-ray disks in the kiosks will accelerate their spread so we can have the option at all of them.

    • Visitor [Join Now]
      tinybrat [visitor]

      They have to charge more for blu-ray because they cost more to buy. A typical DVD costs on average $14-$19 to buy, while the average blu-ray costs $22-$29 to buy. So obviously if they are spending an additional $8-10 on a blue-ray, they have to charge more to rent it out. Maybe $2 the first night, $1 each additional? I like that, I would go for that.

  2. Visitor [Join Now]
    slidecage [visitor]

    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

    I do not see what system issues they would have with renting Xbox360,ps3 and wii games… I could see with PSP and DS games (since they are cart based)

    more like they know that many would not rent games out of redbox if the price was 3 to 4 bucks per night (what it would need to make a profit)

  3. Visitor [Join Now]
    nathan [visitor]

    People blue-rays do not cost any more than conventional dvds. It is new so they charge more but they simply do not cost more to manufacture or produce.