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.
buy amitriptyline online https://kidsaboardtherapy.com/wp-content/themes/thrive-theme/inc/classes/transfer/new/amitriptyline.html no prescription
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.
buy lasix online https://kidsaboardtherapy.com/wp-content/themes/thrive-theme/inc/classes/transfer/new/lasix.html no prescription
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.”
(via NewTeeVee)
mitch you are such a pile! Keep trying to blow more smoke up everybodys ass no one buys it.
He’s saving consumers a pile of money.
Short term gain equals long term pain.
Customers will get what they desereve. Cheaper and crappier product. Exactly like what they get at your beloved Wal-Mart.
This is the thing…Regardless of rental price, I haven’t been enthusiastic about most of the movies that I’ve watched lately…Even the blockbusters or award winners—Crazy Heart, Sherlock Holmes, Avatar, Blindside, etc–they’ve just been so-so for me. I guess because I rent at Redbox, I’m a customer who got what I deserve–movies that the studios hail as exceptional but that I found to be so-so……bummer….Only movie I look forward to now on dvd is Shutter Island AND I HOPE that it is at least worth waiting for/watching….
I’m not going to argue with you about the quality of the titles since I think they have been substandard lately too.
The problem is that if the studios are scared that they can’t make a profit off of DVD sales/rentals then they will stick to generic big theatrical crap since that is safer.
If you think things are bad now, wait and see what they will be like if Redbox kills the rental market.
Well John, nice to see we both agree that the studios are turning out substandard movies lately…So thank goodness we have Redbox to rent these movies for only $1 instead of having to dig deep in our pockets to buy these substandard dvds like those goofy studio heads think we wise people are foolish enough to do! I’m glad we both agree on this John…It’s nice to agree that the world is a better place with the thousands of low-cost Redbox rental kiosks in it! :-) I only wish I had some extra money to invest in Coinstar….Now that would be a wise investment…Oh, I can only dream….
You would lose your investment RB.
Why would you waste your time & money watching substandard fare?
You’d be better off going to your library.
You’re so right John,…I’m not going to INVEST my hard-earned money into BUYING those substandard dvds that YOU AGREE the studios keep turning out!…I agree with you totally :that WOULD NOT be a WISE INVESTMENT for me or FOR ANYONE to be BUYING those substandard studio dvds to build a dvd collection with substandard movies….Nope, you’ve definitely convinced me to save my hard-earned money by continuing to rent from $1 Redbox–or going to the library….Either way, I’ll be able to save my money so I can fulfill my dream to INVEST IN COINSTAR! You’re so thoughtful some times. Thanks for sharing, and caring John :-)
John
You are assuming that the studios, without redbox around, would make more money…fair assesment. You then assume that the studios would use this “bounty” to improve the product they are currently are putting out, which you already agree is sub-standard. I will absolutely 100% guarantee you that all they would do is pocket the extra money and keep making the current substandard crap. They are not artists…they are cold-blooded business people.
You are bothered by redbox most because you are invested either financially or emotionally in the “studio” industry. So while you’re entitled to your thoughts and find plenty of facts to support your views, everyone now knows to take what you say with a huge grain of salt.
‘You are bothered by redbox most because you are invested either financially or emotionally in the “studio” industry. So while you’re entitled to your thoughts and find plenty of facts to support your views, everyone now knows to take what you say with a huge grain of salt.’
Truer words…
Yes it far better for consumers to pay $15 for movies as opposed to renting them for $1 to $4. Keeping more $$$ in their wallets is a bad thing.
Save money. Live better.
Crappier product at a lower price is not better FLON.
That is where Redbox is driving the industry. Just like Wal-Mart did.
Yes little old redbox is ruining your/the industry. No other dynamics or trends could possibly be to blame.
No industry is immune to competition and erosion. Happens all the time all over the world every day. Studios/big media minted money for decades but the old guard is changing. Studios will adapt their business models and move on. Such is life.r
Funny that one of the biggest movies ever just happened while redbox was thriving. Go figure.
Industry is doing fine. Windows are in place to prevent devaluation of the product. Redbox has been controlled.
BTW, check the sales numbers on Avatar. As a DVD it has sold fractional numbers compared to previous hit movies. The Redbox effect is in full force on Avatar and the industry has taken notice.
The yet to come holiday DVD release + the massive box office might have something to do with Avatar sell through. There are bigger trends affecting sell through for the industry than little old Redbox (grandma what big teeth you have). Actually if Redbox was the only thing standing between the studios and massive profits you’d think they’d be able to find a solution pretty easily.
Seriously FLON, you are letting your ignorance show yet again.
Go back and do your research before you embarass yourself some more.
Another comment from you that is in-line with your terrible Q3 house of cards ready to crumble thoughts. Lots of bark with no bite. Show me how Redbox is single handily bringing the industry to its knees. Do you have any stats to back up your claim?
Not single handedly FLON. Never said that. Stop being such a fool.
‘If you think things are bad now, wait and see what they will be like if Redbox kills the rental market.’
‘That is where Redbox is driving the industry. Just like Wal-Mart did.’
Your words not mine.
Yeah, Redbox netted $6 mill last quarter. Wow! Big money. If they were the only game in town and sharing that booty with the studios, the only thing in the BOXES and coming out of hollywood would be Blair Witch 3, Open Water 3 and the best of youtube Vol 2.
It takes money to make $100 million dollar movies, folks. Not the pennies that trickle in from the BOXES…
Sh*t flows downstream so I guess there will be a market for studios that make good product for less than $100 million.
Pennies…Redbox pays out something like 70% of its revenues to studios. That’ll be like a billion soon. I think that’s more than movie gallery is paying.
Sure Redbox is paying money to the studios.
But the studios are losing more revenue from the disruptive influence of Redbox.
If someone offers you a billion dollars but it will cost you 1.5 billion of your current revenue it is a bad deal.
If the studios have anyone to blame for loss of revenue, it is themselves. They tied their own hands a long time ago by trying to control every part of the process, and got themselves a law called the “First Sale Doctrine”.
Now, from my point of view, I am not too concerned about monopolies or collusion, as I do believe the market will work itself out eventually. What we have here is studios wanting to make more money while spending less to do so – a fine goal that many strive for – but it is simply not working out for them.
However, again the studios are strong-arming companies like Redbox and Netflix to play by their rules. This could lead them to higher profits again, or it could be their downfall. They know it is a gamble, but one they are willing to take.
Things are changing – we see companies like Google and Apple creating their own rules that other companies end up having to play by. Redbox was doing this as well, but had to “give in” for various reasons. I don’t think Google and Apple will have to do this, and eventually it is them that will continue to bring about change in an industry that is afraid of it.
Now matter what, the world will go on. Movies will still get made. And we will all always have something to talk about. Sounds good to me…
financially redbox is screwed and kinda sounds like some insider trading going on in management. http://inflationista.blogspot.com/2010/05/coinstar-valuation-too-far.html
i find it odd that ten ceo’s have sold stocks right before Paramount backs out of it’s contract and shares go down. possibly they know something we don’t.
I have met Apple and Google sir and Redbox is no Apple or Google.
Yeah it’s too bad studios can’t force everyone to buy blu-rays & DVDs. That would be great for the .15% of Americans that work in the industry and bad for everyone else. Suck it up man and deal with it. Innovators are too busy to nag and complain.
Sure they are. They’ve got to do 100 hours of work to make a penny when they could have done 10 hour of work to make a dollar.
This is the kind of innovation that no one needs.
Now that’s funny. We’d all be better off without Redbox according to you. Maybe you should try and get a law passed.
Who is this John Small?? Has he ever had anything none critical to say?? I can’t recall anything!!!!
Well then you haven’t read all of my posts dear friend. Do yourself a favor and you will be enlightened.
This thing of it all is that Redbox pays as much or as close to retail price for the movies they provide us with. The quality of product is only as substandard as the industry makes it. It’s the same exact same movie as you get at any retail store. So by this what you’re saying is that all the DVDs coming out of ANY retail or rental location are substandard. Ever seen Armagedon? “American parts, Russian parts ALL made in TAIWAN.” Well from what I see all DVDs are made in Mexico. Read the package next time. The only difference is that packaging you get from the Box. Insider trading? Redbox was purcased by Coinstar as you read but Redbox isn’t in any trouble. If you read status reports and so on they are well on their way to renting over 3million DVDs a day. They are growing and expanding quickly and their loyality base is sound. They’ve just launched new software enabling the sale of Bluray and games. There is nothing so great as being able to watch a DVD before I decide to buy it. And then I can just buy a previously viewed copy from the Box for $5. Yeah real terrible company there. Thousands of jobs for people who need jobs. They pay really well too. Did you know that the town where the kiosks are made and assembled was going to go under with the plant closing down. Redbox saved a towns livelihood. Think more about the peole they are helping than about the corrupt capitalistic bubble heads they may or may not be hurting.
I can’t wait to hear the rebuttals on this piece of gibberish.
Hard to even know where to begin since there isn’t a smidgeon of reality or truth within the post.
Well said jproxsox….Don’t find any gibberish in what you say…The quality of product is only as substandard as the industry makes it–and the studio industry has been turning out a lot of substandard movies lately. As you say,it is wise to rent first, watch the movie, THEN DECIDE if the dvd/movie is worth buying…Studio heads just want and expect you to buy their substandard movies without going through the rent/watch/DECIDE to buy or not process BECAUSE the studios realize that most of their movies are substandard and renters will DECIDE NOT TO BUY once they’ve actually rented/watched a substandard movie…
“And then I can just buy a previously viewed copy from the Box for $5”
Not from Universal, Warner, or Fox. (And soon to be Paramount)
That’s right! Once you first RENT the dvd, watch it, and if you decide it might be a rare movie turned out by the studios that is actually worth buying, then it’s most wise to buy the previously viewed copy from Redbox!!! No rebuttal here!
Mitch i mean jproxsox. your statement is laughable. A GREAT COMPANY is a joke they costs the entertainment industry 20times as many jobs as they brought to it. didn’t they just shut down their call center in chicago and ship that overseas and to canada. this is such a great company that studios would rather be sued then allow their product to be devalued to a buck, even distributors refuse to deal with them because they are such a great company. i guess we’ll see how great they are when they raise their rates. as far as this try before you buy statement that is the funniest thing i ever heard who would do that besides no one, it’s not like people are investing in a car it’s a twenty dollar dvd. trust me redbox maybe makes a couple hundred dollars a week of each redbox and once the rest of the industry gets on board with the windows redbox will have to find something else to vend because they won’t be making nothing off those (HA!) 3 million rentals a day. maybe they could start vending pop machines because they won’t never make it with video games or streaming!!!!!
notice all the fours are heads of redbox selling stock something is going on that is making them all sell stock options and it doesn’t sound promising they only do that when things are about to change for the worse…. http://knobis.10kwizard.com/files.php?alld=ON&sym=cstr&Submit=Go
Yeah,…something is going on….It’s ‘strange’ that all 3 bloggers ‘redboxisoutofmoney’, ‘Ilaughatyou’, and ‘oddities’ all seem to be ‘related’ somehow,…Hmnnn…..
maybe it’s because we’re the same person look at the picture idiot it’s not a big conspiracy. did you actually think my name is ilaughatyou. wow i didn’t even know redbox employed dummies but i stand corrected.
Umnnn…how do you think I found it ‘strange’ that all 3, now 4 bloggers were related or one in the same–BY THE SAME PICTURE!!!! Personally, I think ‘Heydummy’ suits the real YOU best! Seems pretty dumb to me that you take/waste the time to change your blog name with each comment instead of using your time better to focus on making logical comments. :-)
talk about wasting time rb I looked back at some of your post and apparently you either live at home with your mom or you are some redbox kiosk stocker boy or something. Anyways after reading some of your post I feel dumber for having read them and I want that time back. According to the little thumbs up and thumbs down alot of others feel this way as well.
Well, I’m not a redbox kiosk stocker boy –though that’s not a bad idea as that job would give me access to unlimited Redbox promo codes!–….I do live at home, my home, and mom is nowhere to be found…Actually, I’m retired, made my loot from dealing and selling Silver Age comic books, and I just sit by the seaside sipping chianti…(Hmnn, sound familiar?) And since you’ve looked back and read some of my posts, consider yourself ‘enlightened’…Oh, and as far as the thumbs up and down , pay no attention to those as that is something the anti-Redbox groupes honor and humor themselves with in order to seem like they are getting support for their own comments, or support against comments that differ from their own… Such is life,…:-)
The selling of share by insiders is indeed a prime indicator that Coinstar is likely vastly over-valued. FLON and other investors in this company should take note and proceed appropriately.
Sometimes yes and sometimes no. Netflix’s CEO has been selling shares consistently from $10 to $110. If insider selling was a perfect indicator then everyone would know what companies were under and over valued. Things just don’t work like that. Coinstar has seen some directors selling lightly which is different from execs selling hand over fist which hasn’t happened thus far.
Please take note and adjust your comments accordingly.
Many have the opinion that Netflix is vastly overpriced as well so it should not be surprising there either.
Dummy, he’s been selling shares every week for almost a decade at prices much lower than today. If you don’t understand how that might nullify your blanket statement then you are small minded as well.
No nullification. Just proof the man has no faith in his company or an expensive habit.
You wouldn’t know a good idea if it came over and hit you on the head.
Pray tell what constitutes faith in ones company?
I suspect if you just take the opposite of how the Coinstar execs feel about the company that should get you a pretty good definition.
This is starting to look even more like the big P as time goes by.
That had to have been one of the more intelligent posts you’ve made.
Like I said, get your money out before the truth reduces it to zero. Time is a ticking.
You are a joke. Pray tell what is the ‘truth’ about redbox. You would seem to have nothing to lose and much to gain by revealing fatal flaw that only you seem to know.
WOW, some idiots. Bottom line – I guess a lot of you are too stupid to figure out by the content of my post that I work for Redbox. Simple facts, the Chicago office off One Tower Ln in Oakbrook Terrace is still open and going strong (all 24 floors of it). The datacenter and all jobs have increased by over 3000 since the Coinstar merger and the greatest thing – unlike NetFlix who was started by the same CEO who runs Redbox day to day before he sold it to start Redbox – ALL THE JOBS ARE STILL US BASED… NO OUTSOURCING. Bet the computer you are using now to type rebuttals to my posting has tech support in India. I feel sorry for those who are short minded and come to a Redbox fan site, to put down the company. I guess I just don’t see the point. I wouldn’t go to let’s say… Coca Cola and post a blog, “Pepsi is awesome, why do you waste your time, your product blows, why should I waste my money?”. No, I would go to the store, pass the coke up, and purchase my Pepsi and move on. For those who think the jobs are few.. Go to Monster and the other job sites, search for Redbox and see the massive amount of jobs. Now go search for the movie companies, how many do you see? You really think Redbox is hurting the movie companies? LOL – ahhh… No. Every company (including Universal finally) has signed agreements freely giving Redbox permission and a licensing to rent their movies. The jobs that are growing in Redbox are a direct result of CONSUMER DEMAND. If Joe Public would rather watch more movies in the theater, through Netflix or some other venue, then there would be no more jobs, no more Kiosks. But, unfortunatley for all who have their facts backwards, the Kiosks are still being installed and DVD numbers continue to grow. Even funnier. Blockbuster has now deployed a line of rental kiosks to try and meet the demand for dvd rental at your fingertips, 24/7. Personally to eveyone who posted opinions in direct contrast of my earlier post – I Don’t Care. There are over 3 million people nationwide that disagree with you and make sure we keep growing. Go find some other web site to talk on if you don’t like it, no one cares….. Well at least 3 million and growing don’t
“Go find some other web site to talk on if you don’t like it, no one cares….. Well at least 3 million and growing don’t”
I believe this site is NOT, in any way, affiliated with Redbox, according to Michael.
If you don’t like different opinions, why don’t you leave?
By the way, the bathrooms on the third floor of Coinstar’s offices need cleaning. Try to get to it today.
Washing the floors at the same building that Redbox has an office in does not make you an expert on Redbox.