At an investor conference in New York, Disney CEO Bob Iger told investors that he doesn’t believe $1 DVD rentals are hurting its bottom line, and is of no threat to them. Disney plans to continue day-and-date releases to Redbox and other “discount” rental companies for the foreseeable future.
Iger does admit the DVD sales have been down over the past few years, but does not think keeping its titles out of Redbox for a month would have made any real change to that trend.
Admittedly, Disney is a bit of a different beast than many other studios, as they tend to focus on family titles and animated films (Pixar and Marvel are some of their brands) that people like to own and watch many times. This is very similar to the stance that Dreamworks Animation CEO Jeffrey Katzenburg took late last year, saying “For us, they’re great – bring them on.”
For now, the 6 major studios have all weighed in on Redbox, with the vote being split 3-to-3 – with 28 day delays from Fox, Warner and Universal, and no delays from Paramount, Sony, and Disney. Will some of these change sides as time goes on? Who knows. But lets hope that consumers are the big winners in the end.
One thing is for sure – Redbox needs studio support to continue growing, especially in the landscape that will soon be dominated by digital downloads and streaming. If the 28-day deals with some of the studios allow that to happen, than that is only a good thing for their long-term business, even if it is a short-term loss for them (and consumers).
What is your take? Do you buy more movies from studios like Disney (including Pixar and Marvel) and Dreamworks, or have you stopped buying those films as well? What will get you to buy more DVDs again? As always, we love to hear your thoughts in the comments.
[via latimes blogs]