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terminator-2-judgement-dayUnlike several other studios, Paramount has opted to take a measured approach to the rise of Redbox, and has declined to rush to judgment on the kiosk company’s impact on home video revenues. With the four-month “trial” period of the companies’ agreement coming rapidly to a close, however, Paramount will soon be deciding whether or not to continue distributing titles to Redbox for the long term. According to the press release put out by Redbox  in August of this year, “Following the four-month trial period, PHE [Paramount Home Entertainment] has the option to extend the program to 2014, with an out clause after two years.”

Merriman Curhan Ford analyst and frequent Redbox commenter Eric Wold believes that Paramount will make its decision by the middle of December. Says Wold:

“We believe investors will be watching for that decision closely given that Paramount will have a significant level of information on rental trends and sales information at its fingertips ahead of time. . . Clearly, if Paramount believes that Redbox is negatively impacting sales trends and/or not positively impacting overall home video revenues, then they are unlikely to extend the deal.”

With Transformers: Revenge of the Fallen already released on DVD and BD, and G.I. Joe: The Rise of Cobra and Star Trek coming out this month, Paramount has some of the biggest films of the year coming out on disc this quarter. With so much money at stake, it’s certain that Paramount will take a long hard look at Redbox’s impact, positive or otherwise, on its revenues as it considers its decision.

Which way will they go, Insiders? Is Paramount going to decide it’s got a good thing going with Redbox, or will it be “hasta la vista” for the distribution deal?

[via Home Media Magazine]

10 Responses to “Judgement Day Coming Soon for Paramount/Redbox Deal”

  1. Visitor [Join Now]
    rb [visitor]

    Transformers, Star Trek, Gi Joe, etc. are all big Paramount productions. If Paramount makes a judgment on whether or not to continue distribution to Redbox depending on if these dvds sell–then that’s good for Redbox. These kind of sequels to previous box office hits/big selling movies will sell regardless of the quality of the sequel or Redbox. If a person has already started say a Star Trek dvd collection, then they will buy all the Star Trek sequels, regardless, just to complete their collection. The problem is when studios blame/chastise Redbox for its $1 rental of little known crappy movies as the reason for declining dvd sales– when fact is that once the person has rented/actually watched the movie and decides for themselves that it’s crappy that they don’t want to then buy the dvd.

  2. Visitor [Join Now]
    John Small [visitor]

    I suspect a lot of it will have to do with whether Redbox goes with the new pricing formats they are testing out.

    I’m surprised this board has not made a post about the new pricing tests in New Mexico and Penn.

    • Visitor [Join Now]
      rb [visitor]

      Still $1 rental where I live in PA. From what’s been reported, Lancaster PA is where they are testing the new price. Not sure why Redbox chose Lancaster, Pa. since Lancaster is Amish/Quaker country. They still ride their horse and buggy there! Don’t think the Amish families even watch tv let alone rent movies!

  3. Member [Join Now]

    I think it all comes down to what expectations Paramount has set on making on these 3 big movies. If they expect too much like it seems most movie studios now a days do then I see this deal falling through.

  4. Visitor [Join Now]
    Joe Schmuck [visitor]


    Walmart prices Q4 DVD new releases at $10

    PHYSICAL: Harry Potter and the Half-Blood Prince, Star Trek among the discounted titles
    By Susanne Ault — Video Business, 11/5/2009

    Harry Potter and the Half-Blood Prince grossed $301 million at the box office.

    NOV. 5 | PHYSICAL: and are aggressively discounting a number of upcoming fourth-quarter DVD releases, including Harry Potter and the Half-Blood Prince, Star Trek and Night at the Museum: Battle of the Smithsonian, to just $10.

    This price is valid for the sites’ top 10 pre-order DVD movies. Other featured hits include Angels & Demons, Julie & Julia, Four Christmases, G-Force, My Sister’s Keeper, Santa Buddies and Terminator: Salvation. It appears the basement pricing is guaranteed only online and up until the movies street in November and December. also is promising free home delivery for both DVD and Blu-ray Disc titles, excluding box sets, starting today and lasting through the holiday season, at

    The $10 initiative was kicked off Thursday by Hours later announced nearly an identical deal. said it is slashing prices on new release DVDs, which typically retail for four to five dollars more, to help families holiday shop during this difficult economic environment. The retailer earlier announced ultra low pricing on hot new release book titles.

    “This will be a challenging holiday season for our customers, and we recognize that more of them are choosing every day as the Web site with the lowest prices,” said Raul Vazquez,’s CEO. “We’re excited to offer our top 10 pre-order DVD movies for just $10 as well as free home delivery on our entire assortment of DVD and Blu-ray titles. This is yet another example of how we continue to help our customers save money online at during the holidays and beyond.”

    Studios seem to be downplaying the pricing deals, perceiving it as simple Web site turf wars rather than severe devaluation of the DVD category. Walmart and Target are most likely trying to drum up buzz for their Web sites, which represent a small fraction of their overall sales, according to studio sources.

    Also comforting to studios, the extreme low price tags are expected to disappear at the chains by the time the titles street.

    “This is a straight pre-order promotion, and online reprsents a small part of their business,” said one studio executive. “They’re trying to get more people to shop at the [sites], and not”

    The executive added that the $10 pre-order campaign may help retail estimate consumer demand early to avoid the nuisance of heavy stock returns.

  5. Visitor [Join Now]
    Kevlit [visitor]

    Walmart is smart! People will definately buy more dvds for 10 bucks….people are poor they dont have 15-20 bucks to spend on dvds even as gifts! And this isnt because of redbox this is because of the economy and Walmart always has low prices….always….and they can afford to do this because dvds arent selling well anyways. I for one will be buying Star Trek on Bluray when it hits the shelves because its a damn good movie! No one buys movies if they are colossal flops even at $10 bucks people probabaly wont buy those other titles only the blockbuster ones!