NewTeeVee recently sat down with Redbox president Mitch Lowe and asked him his thoughts on a variety of topics. In his responses, Lowe shared his take on what he believes is holding the home video industry back, why he considers Redbox to be an innovator and why he’s confident in his company’s future viability. Here are some highlights:
Lowe on the main issue he feels is holding back the industry.
” . . . Over many decades, Hollywood has become an institution. As such, it is somewhat slow to change. But just like the music industry, we are beginning to see change within the motion picture industry, which has been largely driven by consumer demand, innovative business models, and new technologies. At Redbox, we believe change is imperative to keep the industry vital and relevant, and we’re doing a number of things to ensure that the company adapts to change. In addition to surveying consumers on an ongoing basis, we’re testing video games and Blu-ray rentals to gauge consumer demand, because while we believe in the viability of the DVD for many years to come, we also recognize that consumer preference will continue to evolve . . . ”
Lowe on Redbox as an innovator, not a disruptor.
“Redbox has been referred to as a disruptive technology and in some ways this is very flattering as it says that we’re not happy with the status quo -– which is true -– we’re constantly looking at new ways to innovate and improve the consumer experience. When we think about how we’re helping consumers who love movies have access to more entertainment through our low-cost model, we don’t think of ourselves as disruptive at all. So while some may call us disruptive, we’d prefer to think of ourselves as innovative with an end goal of serving consumers.”
Lowe on why he would choose to invest in Hollywood studios if he had to invest $50 million in the industry.
“. . . We already channel millions of dollars to the studios by purchasing their content and inspiring consumers to try before they buy . . . At the end of the day, regardless of how people consume entertainment, they want a quality product. When the studios are successful and producing great quality, entertaining movies, we’re all successful.”
Lowe on Redbox’s plans to remain viable in the long-term.
“Redbox firmly believes in the viability and profitability of DVDs. With the move to content delivery mediums such as Blu-ray and 3D, Redbox has the opportunity to play a pivotal role in meeting the entertainment needs of consumers for years to come. Our national network of more than 21,000 locations, proven technology and expansive customer base leave us well-positioned to execute against developing technologies if and when data suggests customer preference is moving in that direction.
Regarding digital/streaming, we are looking at a number of potential solutions that would fit with the value and convenience proposition of Redbox, and are currently surveying consumers to better understand their interest in our potential offering.”