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.”
Lowe goes on to state that Redbox has become “a convenient scapegoat” for the studios’ DVD sales woes, when at least some of the blame should be placed on increasing consumer discretion when it comes to film buying.
“People’s shelves are full of movies. They’re being more selective about what they’re purchasing.”
When asked why Redbox doesn’t agree to higher rental fees, which will translate into more profits for studios, Lowe stated the following:
“We pay the same money for the movies as Blockbuster–sometimes even more. So why shouldn’t we charge less to rent? Maybe the question should be: Why doesn’t Blockbuster charge less? The most amazing way to deliver movies to people is where they shop. We cut out real estate costs, and we’ve come up with a much more effective model.”
Half of the major studios love Redbox and “get” the opportunity it provides with its massive kiosk network, Lowe says. The other half needs to understand that instead of imposing restrictions, they should be acknowledging the boost to profits that Redbox can provide. Lowe thinks that the studios that “don’t get it” aren’t basing their feelings on facts and will change their minds at some point.
“…With our huge presence we can help promote films. For example: Management. It didn’t do well in theaters, but we promoted it heavily, and it made more in the first week in rental than it did during its entire theatrical run. . . We do a lot for our partner studios. We promote theatrical releases at no extra charge to the studios.”
Is Lowe talking sense, Insiders? Do you think that the rest of Hollywood will come around to his way of thinking? Give us your thoughts in the comments.
[via Forbes]
http://www.homemediamagazine.com/redbox/redbox-sued-alleged-late-fees-17412
thats strange since it says on the kiosk I go to that it is $1 per night per rental. That means, each day is an additional $1. Therefore common sense says if you keep it for 20 days, it would be $20 – duh. Plus, it says that if you read it. Silly people with no common sense…it’s scary!
Except near Lancaster, PA where Redbox is now charging $2 for the first night. We all knew this was coming.
Shopping Cart
Pickup location:
Walmart
890 E Main St
Ephrata, PA
Checkout
You must checkout to reserve your movie.
Once reserved it will be held until October 29, 2009 9:00 PM
Tinker Bell And The Lost Treasure
$2.00
$2.00 first night
$1.00 each additional night
These are the nearest redbox locations with your movie available:
+ Add Another Movie
Sub total $2.00
Tax $0.12
Total $2.12
Sorry, never heard of it being more than $2….seems like it would have info on that somewhere????
I mean more than $1
Customer Service says we are in a test market for the $2. I asked what is the test market, their answer Albequerque New Mexico and Harrisburg Pennsylvania. I said I am in Lancaster PA and it is charging $2, so how far is this harrisburg market, customer service answer I do not know. I said how can you charge $2 when it says $1 on your kiosk, it says $1 on your website, sounds like false advertising to me.
Another question, how come when you finally find something you like, they have to screw it up. The video store was pretty neat till they charge $4.99 for a rental, then came Redbox $1 to rent a movie that you can rent at many locations and return at any convenient location, wait until I really like it…..then make it twice as much money.
At $2 I will jump ship to Blockbuster or Netflix online rental.
Redbox is testing a $1.50 per day in Albuquerque, NM.
Pickup location:
Smiths
Machine B
320 Yale Blvd SE
Albuquerque, NM Checkout
You must checkout to reserve your movie.
Once reserved it will be held until October 29, 2009 9:00 PM
Ice Age 3: Dawn of the Dinosaurs$1.50
$1.50 first night
$1.50 each additional night
These are the nearest redbox locations with your movie available:
+ Add Another Movie
Sub total $1.50
Tax $0.10
Total $1.60
If Redbox annoys me running some stupid test I will get Blockbuster or Netflix trial and see how that goes.
Redbox also helps the studios promote their movie trailers and logos. You can’t skip past some of the studio animated logos, you have to watch the whole thing.
Exactly. Also it was a first when around 2 weeks ago I got an email from Redbox with the Michael Jackson trailer for This is It–by Sony studios!
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yep….or just wait a little while longer, like most of us are willing to do. :)
Same here as a dvd is a major purchase for me. Just like any other business the ones at the top can’t relate to the ‘little people’, lol, who actually keep an eye on their money.
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Greedy pigs.
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Totally true about helping promote films. I hadn’t even heard of ‘Management’ until I was standing at the kiosk one night. Decided to get it because it was featured, and I LOVED it. Will probably buy it this week.
It’s only a matter of time before Redbox rates shoot up. Probably shortly after Blockbuster folds.
I hope Redbox tells the studios to go to hell, goes to Walmart, clears their shelves of new releases, and stocks their kiosks anyway. What the studios are doing is tantamount to trying to monopolize the video rental industry. Redbox has revolutionized the video rental industry…and the studios who aren’t onboard seem pissed they didn’t think of the idea first. I hope all the greedy pigs die, slow, painful deaths, clutching their wallets and check books in their hands.