The other day we heard from Gary Cohen, Redbox’s marketing chief, as he fielded questions about the company’s past, present and future. Now we have the chance to hear from the Big Red himself: Mitch Lowe. The Redbox CEO recently sat down with The Hollywood Reporter to discuss delayed new releases, the recession and his view on a post-DVD world. Here are some highlights:
Lowe on the Financial Impact of Fox, Warner and Universal’s New Release Embargo
“What’s great is that there are four studios who provide great product and a great alternative for our customers. We are also able. . . to acquire other product, though not at times in the quantity we would like and not without extra cost. . . It’s not the prettiest picture and doesn’t come without cost and strain on our organization, but generally we’re able to do it.”
Lowe on the Prospect of an Industry-wide Moratorium on New Release Rentals
“Redbox would at least consider supporting something like that, provided there are a couple things in place. The first one is that all rent-ailers [sic] are on the same even playing field. Second, the studios would have to recognize that there is a different demand and a lower value to a rental time frame like that, and there would have to be a recognition of that difference.”
Lowe on Whether Redbox will Lose Customers Once the Recession Ends
“While our business does slightly better in markets where there is higher unemployment, the difference is very, very small. So we think we deliver incredible value whether you have money in your pocket or are on a tight budget. We believe we’re converting people to long-time customers.
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Lowe on the Eventual Shift to Digital Distribution
“It’s one of those things that definitely will happen some day, but that “some day” is still a long way out. That’s not to say there won’t be successful digital services. . . It’s just a matter of when that will become as large as the disc-based business, and I think it still has a long way to go.”
Lowe on the Typical Redbox Customer
“[Our typical customer is] a family with small children who’s renting both a film for the parents and a film or two for the kids. They are typically both working in the household and the kids are high school age or younger.
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[via The Hollywood Reporter]
Lowe seems to be dancing around the questions. It sounds like things are not good at Redbox from this interview.
LOL. ROFLs even. “Dancing around the questions” how? Pssst. There’s also that whole 2012/Mayan Calendar/Nostradamus thing if you want to spread more FUD. Doom and gloom.
You astroturfers make it too easy to spot you ;)
Question #1 – Spin and dancing
Question #2 – Spin and dancing (he really does not like this idea!)
Question #3 – Spin and dancing (he knows that Redbox is a recessionary business)
Question #4 – Ultra-spin. Do you think the fact that Redbox has only a 5-10 year viability factor makes Coinstar investors happy?
Question #5 – He answers this one fairly.
BTW Shane, the full quote from the CEO is “We believe we’re converting…” not “We are converting…”. There is a big difference between the Ceo’s opinion and a statement of fact as you have presented it. A little extra spin from Insideredbox.com for the home team?
You know what would be a really cool idea John Small? How about YOU start an anti-redbox website? I’m serious. I’d love to check in on your posts and threads to see how it goes. Would you have any interest in that?
You are mistaken if you think that I am anti-Redbox.
I am against their policy of undercharging for movies.
I think their CEO has unneccesarily antagonized the studios with his approach and that he is a detriment to the corporation.
However, I do think there is some good money to be made by Coinstar (through Redbox) if they approach things properly.
Sadly, I do not believe Mr. Lowe is capable of running this ship much longer without sinking it.
Redbox isn’t a recessionary business. it was thriving well before the economy tanked. A value proposition thrives regardless of what’s happening in the external economy.
Packaged media has a 5-10 year relevance. Ever notice the name of redbox is ‘redbox automated retail’ and not ‘redbox dvd rental’? Kind of like netflix isn’t DVD-By-Mail? redbox’s asset is the network and the relationships with retailers. One thing I know redbox is aware of is that in 10 years they won’t be renting the saem way they are now. Trust me when i say there are a lot of bright minds already working on the next iteration of retail offering via redbox.
Redbox has the elements of a collapsing pyramid in place. Lowe knows this and is concerned that the media is figuring it out as well.
Drastic changes are neede for Redbox to survive. Is Lowe the guy to do it?
The Redbox near me is on the other side of town, a good 15 min ride each way. Blockbuster is putting a kiosk outside the Tedeschi food store a 5 min ride from my house. Guess who is going to get my business ? Unless of course the blockbuster machine sucks ;-)
Redbox of course :)