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Redbox Renews Deal with Universal

downloadDespite a rough fourth quarter for Redbox last year, Hollywood still has some faith in the kiosk operator. Universal Pictures Home Entertainment has chosen follow in the footsteps of fellow studios 20th Century Fox Home Entertainment and Warner Bros. Home Entertainment and renew its distribution deal with Redbox.

 

Erik Prusch, CEO of Redbox parent Outerwall and Redbox’s interim president believes that distribution deals for physical media remain of core importance to movie studios:

“Our movie and video game studio partners rely on physical discs as a key part of their window and revenue maximization strategy . . . This would be very difficult to replace.”

Prusch also acknowledges that Redbox needs to try new things to turn its business around:

“As interim president, I have the opportunity to dig into the Redbox business in different ways and and assess opportunities for the brand by focusing on the fundamentals . . . Levers that worked in the past, such as investing in more content or certain marketing promotions, are no longer sufficient,”

With the major studios still making deals with Redbox, does the company still have many years of DVD rentals ahead of it?

[via Home Media Magazine]

6 Responses to “Redbox Renews Deal with Universal”

  1. Member [Join Now]
    Chad Cronin [chadcronin]

    I still have cable unfortunately due to family that lives with me that’s older and less into streaming. So I have to save. I do $5 Tuesdays and Redbox only when they have codes for either free movies or a discount. If they weren’t around I probably just wouldn’t watch as many films. I noticed a lot of the interesting titles that aren’t major Hollywood releases seem to disappear rigt away so there must be some serious bookshelves loaded with Redbox movies. I don’t know what else Redbox can do other than start making their own movies

  2. Visitor [Join Now]
    James McMillan [visitor]

    The entire physical media market is in jeopardy because of the increased ability for people to stream movies. I do believe that the discs will be around for a couple more years, as everyone doesn’t have a fast internet connection. I do find it interesting that many people don’t mind the lesser quality (lossless audio) from streaming, though streaming is improving overall. What Red Box can not do is increase prices and expect to survive. When streaming was not around, this was possible. Ask Blockbuster what happens when streaming became mainstream and they didn’t reduce prices to stay competitive.

    Advice for Red Box: (Hopefully someone with affiliation takes a peek)

    Stop only providing movies with stripped audio tracks. If a movie is available in Dolby ATMOS and or DTS:X, then make sure you offer those discs, less you lose the people that spent big dollars on upgrading their audio equipment to hear those two formats.

    4K is catching on, if UHD becomes mainstream, be prepared to offer UHD discs at a small upcharge.

    Continue to offer discounts, 50 cents off, often enables a person to rent two discs instead of one.

    Stay aware of what streaming packages are offered and the pricing tiers.

    To raise prices will surely spell reduced market share.

    • Member [Join Now]
      Shemp Howard [shemp-howard]

      @James McMillan [visitor]

      your quote…
      To raise prices will surely spell reduced market share.

      In the real world it works the other way around:

      LOWER market share results in HIGHER unit prices.

  3. Visitor [Join Now]
    Danofive0 [visitor]

    I give RedBox a A for trying to keep things going…
    But they are still sinking. They are trying to do all they can just like Block Buster did.
    RedBox will need a new partner this year to keep going. They are bleeding money. And they can’t keep it up much longer…
    A word to REDBOX ………
    Go back to charging a buck for a DVD. And $1.25 for a Blu-Ray.
    Give people a 48 hr window to watch it and gat it back.
    Drop the games. Just have Movies….

  4. Visitor [Join Now]
    Danofive0 [visitor]

    The big thing is…. It’s not just one rough quarter. it’s getting worse as it goes… RedBox has lost every quarter in the last year.. And they try to pass it off as this & that…. But in the end. It’s a loss.
    If they don’t get partner with some big money to put in.. I don’t see them in a year are so….
    On the other hand… They could sell out … To? Amazon,NetFlix, Hulu???
    Just food for thought!