Industry journal The Wrap has once again given Mitch Lowe a soapbox, and the Redbox CEO has made the most of it. Lowe has seized the opportunity to discuss his take on the protracted decline of DVD sell-through, as well as reiterate his commentary from last month that Redbox increases, not decreases, demand for DVDs.
In his editorial, Lowe lays out the three primary reasons why, in his opinion, the DVD sales market has cratered. According to Lowe:
“Without a doubt, the primary culprit in the decline of DVD sales is the poor economy, which is forcing consumers to reduce purchases of everything — even essentials.
Secondarily, after 12 years of filling their shelves with billions of dollars of DVDs, consumers are feeling a natural saturation in a maturing market.
Third, many consumers are wondering what is next, whether Blu-ray, internet delivery or other advances in technology. This uncertainty is causing them to delay their purchases of the old standard-definition DVDs.”
Lowe goes on to restate his stance that Redbox is significantly increasing demand for DVDs by enticing many consumers who would not normally rent into the marketplace and by aiding studios though promotions of new releases. Lowe also cites the “try before you buy” mentality of many Redbox customers who purchase DVDs after renting them.
The Redbox CEO concludes his litany by taking a shot at the backwards thinking that he feels prevails at many Hollywood studios and rental providers:
“The simple fact is that consumer preferences for home entertainment are shifting, driven not by Redbox but by the economy, advances in technology and an ever-increasing focus on convenience. . . In the face of this evolution, some brick-and-mortar outlets are offering only a “stone age” approach to the consumer (pun intended), while fighting to maintain the fading status quo. . . And while our competitors continue to act as if their brick-and-mortar stores are the only rental option available, resisting the changing environment, Redbox chooses to respond by offering consumers the value and convenience they demand.”
Is Lowe’s talk about the economy’s culpability in the DVD format’s decline accurate? Is he dead-on about the shifting of consumers’ home entertainment preferences? Tell us what you think in the comments.
[via The Wrap]