I ran into an interesting blog entry today from David over at Audioholics.com regarding the lawsuit between Redbox and Universal.
The post is quite comprehensive, but David’s main conclusion is similar to mine:
Everything that Universal is pushing not only hurts Redbox, but hurts consumers as well, forcing them to pay higher prices either for other rental options or for retail purchases. Most other rental options, physical and downloadable, cost at least three to four dollars. Redbox renting at $1 a night provides significantly more incentive for consumer to rent verses the $15-$20 retail sell through of DVDs. Then, with all of those rental discs released into the market as used it further redirects consumers from purchasing new DVDs; damn competition.
Read the full post here.
I will add one thing here that no one else is really saying. $1 DVD rentals are nothing new. They did not start with Redbox or even kiosk operators at all. Do you know where they started?
The answer: grocery stores.
Before Redbox, I rented most of my new releases from my local Albertsons. How much did I pay? $1/night for new releases, and like $1 for 5 days for older movies.
The way media is being viewed and purchased is changing. It’s time for movie studios to change, too, or be left in the dust of the future: innovation.