Registered Redbox email list members might have noticed an interesting ad in the email sent out this Tuesday. In the email, a large ad filling the right sidebar proclaims, “Rent The Proposal And Get $5 Off When You Buy It On DVD”.
While the details of the offer are not specified in the ad, and clicking the link currently just takes you to Redbox’s home page, it is nonetheless fascinating to see a major studio testing this type of promotion. Read the rest of this entry »
Redbox.com has recently been updated with some welcome changes that should make using the site a bit easier and more useful.
New Location Finder
Probably one of my least favorite parts of Redbox.com was their location finder and map. Many others have shared their frustrations with this as well, and Redbox has made some great improvements.
After having been the plaintiff for so long in its suits against several Hollywood studios, Redbox now gets to wear the “defendant” hat. The kiosk operator is the subject of a class-action lawsuit claiming that Redbox has illegally collected $100 million in fees from customers who kept films for longer than a day.
Hot on the heels of yesterday’s commentary on customer choice from Mitch Lowe, we have some more insights from the head of Redbox. In a recent Q&A session with Forbes, when asked if some studios are behaving emotionally and irrationally by trying to cut off Redbox’s access to new releases, Lowe concurred with that assessment:
“Historically, they have been [acting emotionally and irrationally]. I dare them to show that we’re cannibalizing their sales. Not one studio has gone public with any proof of that. They just assume that renting at a low cost hurts their sales.”
As we have mentioned on this site previously, the typical Redbox kiosk can hold around 600 discs but usually carries fewer than 200 unique titles. This is the result of a decision, according to Redbox CEO Mitch Lowe, to limit consumer choices by stocking kiosks with a narrow range of titles. Lowe says the decision was made after experiments were conducted offering a wider variety of titles, including classic and foreign films.
We’ve already heard about at least one major studio putting the squeeze on Netflix to obtain more favorable terms. Now it appears that something more wide-reaching is afoot. According to the Los Angeles Times, several unnamed major studios are considering a new policy that would impose a moratorium on ALL DVD rentals for the first few weeks a title is available for sale. The plan’s obvious aim would be to push more consumers into purchasing titles, a transaction that is much more profitable for studios than a rental. Studio sources consulted for the story stated that “such plans were under consideration and probably would take effect next year.”
As Redbox’s antitrust case against several major studios slowly progresses, it’s only natural to think ahead to possible outcomes and wonder what the future may hold for the kiosk vendor. If worst comes to worst and Redbox’s suits are dismissed or it loses in court, what then? The following are some hypothetical solutions that Redbox could implement to cope with having a large percentage of the major studios’ titles denied to it for 30-45 days after release.
Here is your list of movies coming to Redbox this next week. Be aware that some movies like Ice Age 3 and Orphan may be delayed a few days in your area. Enjoy!
Jesse Stone - Death in Paradise (RR) 
Nothing Like the Holidays 
Tinker Bell And The Lost Treasure 
The Walt Disney Co. has created a new technology designed to usher in an era of simpler, more convenient movie downloads. Codenamed “Keychest”, the new content delivery system will be similar to the “cloud computing” nature of many web-based applications that store files and media on remote servers, allowing access from anywhere with an Internet connection.
With all the doom and gloom surrounding DVD retail these days, it’s nice to get some good news every now and then. According to information recently released by the Digital Entertainment Group (DEG), Blu-ray disc sales rose 66.3% in the third quarter of this year and Blu-ray rentals are up 44.5%. The increase in Blu-ray disc sales contrasts with an overall 13.9% decline in packaged media sellthrough in the same time period compared to 2008. In addition, Blu-ray sellthrough is up 83% for the year to date.
