According to an article in the Wall Street Journal (subscription required), Redbox has recently made deals with several top movie studios. This comes at a time when things seems to be getting worse with Universal…
Why would these top studios – Disney, Sony and Lionsgate – make these deals? Well, it seems DVD sales are down about 14% so far in 2009, and these studios would rather sell DVDs to Redbox then no one.
What these deals actually mean for Redbox is unclear, but it is likely Redbox will be getting DVDs from these studios at a better price than they were previously, giving them better margins, which means higher profits.
I am sure Redbox would like to secure some exclusive deals from certain studios in the future, similar to the deal Blockbuster has had with The Weinstein Company for the past few years. This would really put Redbox over the top and cause them to continue to gain ground over Blockbuster.
For now, though, Redbox just needs to be able to secure more new releases than they have been. What movies have been released lately that you wish Redbox had?