After ten months of evaluation and experimentation, Paramount has decided that Redbox is not hurting its DVD sell-through business and has extended its agreement with the kiosk operator through the end of 2014. Paramount’s attitude stands in stark contrast to that of other studios such as Warner, Fox and Universal.
Dennis Maguire, president of Paramount Home Entertainment, offered the following on his company’s decision:
“The bottom line was that there were two conclusions we came to . . . There hasn’t been a cannibalization of DVD sales from Redbox, and that Redbox was allowing us to expand our business and ultimately make more money than if there were windows.”
Maguire went on to say something that is completely anathema to other some studios: that forcing consumers to wait to rent titles is not compelling them to buy more DVDs. Said Maguire:
“Those people who want to rent are going to figure out ways to rent . . . and us restricting them from renting isn’t going to turn it into a purchase.”
Why has half of Hollywood decided to embrace Redbox, while the other half has seen fit to try to sequester it behind delay windows? Why are Tinseltown bean counters coming up with such different conclusions as to Redbox’s effect on DVD sales? Leave us your opinion in the comments.
(via the L.A. Times)