Redbox is really getting hit from all sides lately. It is the “hit them while their down” strategy. Will it work?
This time the attacker is the Video Buyer’s Group (VBG), a group of independent rental retailers across the midwest. We have heard from these guys before, back in Mach 2008, when they tried to get R-rated movies pulled from Redbox kiosks at McDonald’s locations.
Their current argument mirrors that of the studios, that Redbox $1 per night pricing is causing the poor movie studios to get less revenue, thus making it more difficult for them to make more films in the future, causing many children everywhere to cry, culminating with the earth spinning off its axis and ending civilization as we know it!
Here is my favorite quote, from our good friend Ted Engen, president of the VBG:
“Dollar rental kiosks are to the film industry as the Internet was to the music industry,” VBG president Ted Engen said. “That’s how bad this thing can get.”
I agree with Ted 100% – at least on his first sentence. It is true that rental kiosks like Redbox are changing the film industry much like the music industry changed due to the likes of Napster and iTunes. The difference is, I see it as a good thing.
So, bring on the “bad”, Ted, while consumers everywhere cheer at their now more affordable entertainment options. A sad story, I know.
Oh, and last I checked, the music industry is doing just fine, now that they have adapted to their new environment. Why would the film industry be any different?