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Some more information from the Coinstar earnings call that is of interest.

Redbox has plans already in place to ensure that they will continue to stock Universal DVD releases on day 1 of their release, ensuring this legal situation will not affect their customers.

Direct from the call transcript:

Pat Schaefer- Chartwell Capital Investors

Then one more issue, you stated that you can’t comment on universal’s proposed change in their distribution policy because of the pending litigation and I totally understand that, but perhaps you can comment on that development a little bit more broadly. Have other studios indicated similar intentions or is this strictly a universal policy change at this point?

Dave W. Cole

Thus far we haven’t heard from any other studio so at this point in time that action is just restricted to Universal.

Pat Schaefer- Chartwell Capital Investors

Okay, and do you have a sense of when that distribution policy would take effect if they were successful in implementing it?

Brian Turner

As the lawsuit indicates, it’s December 1, and we already have figured out how to work with that and still have movies in the kiosks on the day of release, Universal movies, so we do not intend to let this slow us down.

This is great news for all of us. Also, they mention that no other studio has approached them with anything like this. And, hopefully after Universal fails at their attempt, that will be the end of this kind of thing.

Why is it that they media companies just can’t give consumers what they want and stop being so greedy. I understand the need for profits, but times are changing and they need to change with them.

10 Responses to “Coinstar: Redbox will continue renting Universal releases”

  1. Member [Join Now]
    Radman [radman]

    This Quote, “I understand the need for profits, but times are changing and they need to change with them.”

    So they need to not make profits? Funny.

    If Universal wins the lawsuit, I guarantee all the other studios will follow suit.

    If redbox doesn’t like the terms they can go to Walmart and get the movies.

    PROFITS are not possible if that were the case. I quote again, “I understand the need for profits, but times are changing and they need to change with them.”

    Universal and the rest of the studios know that $1 rentals are killing them.
    Come on Redbox, keep destroying the industry with your Predatory Pricing.

    If you like your big box movie productions you better be willing to pay more than $1 or you will see less and less movies made by these so called Tyrant Studios. I pretty sure that these studios are not really thrilled with all the cries for their weekly free movie fix.

    With that said, I don’t blame people for getting their $1 rental and not buying movies any more. How can you turn down free rentals? Why would you support your local stores paying taxes when you have bills and you see a sign for Free to $1. Just remember, the studios see this and are not going to sit back and spoon feed you movies for free.

    Luckily for all those that want their free movies I don’t see Universal winning this lawsuit. However, I do see more lawsuits coming from other companies with Predatory Pricing claims.

    • Administrator
      Michael [administrator]


      Thanks for your comment.

      I was not referring to the studios not needing to make profits – obviously they do. What I mean is that – like the music industry – there is major change in the distribution model that has been working for so long.

      Music is moving rapidly to being given away for free, and the music industry is slowly learning to adapt and using it to their advantage. i think movies are headed in a similar direction. Though they may never move to being totally free, with distribution on the internet getting more popular every day, the cost consumers are willing to pay for private use in their own homes continues to fall.

      Hopefully, they can come to a fair settlement for all, so that we as consumers don’t end up the losers.

  2. Member [Join Now]
    Radman [radman]

    Nice logic to the music industry, however, I do not see actors going on tour with their movies to make the “Profits.”

    The Movie Experience has been devalued by these companies giving out rewards for doing nothing to earn them and the Studios are simply trying to protect their interest. The fact of the matter is that Redbox is not making much, if any, Profits themselves. You make them have to pick up their movies from other sources than their current distribution and they will be sunk.

  3. Member [Join Now]
    Radman [radman]

    “Hopefully, they can come to a fair settlement for all, so that we as consumers don’t end up the losers.”

    With today’s economy you really think that the current price customers are paying for movie’s isn’t fair?

    The average price you paid for movie rentals 10 years ago was $3 or $4. Now it’s less than $1 with the average from all the freebies.

    I think the term “Greedy” may have switched from the studios to Joe Consumer.

  4. Member [Join Now]
    Radman [radman]

    If you lure your customer to use the internet I guarantee this “entitlement” that the music lovers have learned and they all will be downloading movies for free all the time, not just Mondays.

  5. Member [Join Now]
    Radman [radman]

    No one wants to play Devil’s Advocate?

    I have personally rented from Redbox, not saying it’s wrong, but why the blinders when it comes to the Universal lawsuit?

    Universal knows what is at stake and the other studios are waiting to see what happens.

    If Walmart wouldn’t have added redboxes to their stores I would guess that Universal wouldn’t be so stubborn and would let them have their deal. Thoughts?

  6. Member [Join Now]
    Radman [radman]

    I’m real curious to know how Michael thinks that the movie industry is the same as music and the movie industry can thrive at the current state.

    There are concerts for Musicians to go on tour to make money.
    Does that equal to Actors going on tour and doing plays of their movies?

    A couple million dollar production of a CD to be sold as $1 singles.
    100 million dollar movie productions selling/renting for the same price as a Blair Witch Production.

    Granted there are not that many 1 million music and 100 million movie productions, but I think my point is clear.

    Say goodbye to the 100 million dollar productions if we stay at are current rate.

    Michael also states that movies are heading to internet the way music has. That is a very scary thought since the majority of the public is getting music illegally. Even more scary is that the majority also thinks that there is nothing wrong with taking music from the share sites.

  7. Member [Join Now]
    Radman [radman]

    The sound of one hand clapping is seriously embarrassing.

    Let’s just say that most of posts on this web site will only help Universal in the lawsuit against them.

    Enjoy your free codes while you can, they will be gone soon.

  8. Visitor [Join Now]
    Dragon Reborn [visitor]

    Do you really think that rentals have that huge of an effect on sales of dvds. No.

    At least personally, I’ve bought more DVDs because I enjoyed them. I can “preview” a lot more DVDs at $1 a night than I can at $3. So, I can afford to rent an “I might like it” title. Sometimes when I do that, I realize that I do, in fact, want to own it.

    Sure, there are some who are too cheep to buy ever, but consider this. Redbox doesn’t hold titles forever. If you want a title 6 months to a year out, you might not find it in your local kiosk. So, if you want to watch a movie again, after renting from Redbox, you would have to buy it. In that way, Redbox almost encourages sales of good movies. Opposed to video stores that keep the movie available for rental for 5-10 years.

    I’m not saying there is no impact. But, it’s not “killing” the movie industry. Even at $1. If that was what this was all about, then high-dollar economists could straighten it all out. But, there’s so much more to it.

    I’m not going to lend credence to conspiracy theories. It’s just that business is never straight forward.

    As for the difference between $3 rentals and $1… Redbox has a more cost efficient model. One that wasn’t in use when Brick-and-mortar stores first came along (not sure how many VHS tapes you could fit into a machine, and imagine the mess with “damaged” tapes… )

    But, Redbox, DVDPlay, and other “unattended” Vending-style businesses have less overhead on the “store” level. So, they can do things cheaper.

    Is Redbox going to put Blockbuster out of business? No. Not single-handedly at least. There are too many things that Blockbuster offers that Redbox is not in a position to.

    Is Redbox going to decimate the DVD/Blue-ray sales market. No. Having a title in a machine for 4 months to a year is not the same as owning it. Some people don’t want to drive out to watch their favorite movies. Some people don’t want to risk their local machines being out when they do want to go rent them.

    Is Redbox going to affect Hollywood’s movie making. I can see an effect here. If more people rent before they run out and buy a movie they “heard” was good. (Ah advertising), then the movie is going to have to be worth they $20 they shell out for the Title, because customers are going to have a better chance of knowing if they liked the title or not first. (Something I won’t have to deal with near as often, since there are 4 Redboxes within a mile of me now. I know if I want to own a title.)