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HannibalLecterMaskRedbox’s position in its battle with Hollywood and other interests has been made a little stronger with the results of a study conducted this month by Interpret. The study not only vindicates Redbox by demonstrating that it doesn’t cannibalize DVD sales, it also shows that Redbox customers buy MORE movies than non-customers. Here are the study’s findings, brought to us courtesy of Video Business:

“In the past six months, Redbox renters said they bought 3.3 new DVD or Blu-ray titles and 1.4 used DVD/Blu-ray discs. That compares to non-Redbox renters who say they purchased 3.1 new DVD/Blu-rays and 1.2 used DVD/Blu-rays. Additionally, the heaviest Redbox users, who rent at least one $1 title weekly, say they’ve bought 4.4 new DVD/Blu-rays and 1.9 used DVD/Blu-rays. This data is similar to results from a January NPD Group study showing heavy new DVD purchasing among Redbox renters.”

While the study’s results will likely be disputed by Redbox’s opponents and are certainly not the final word on the matter, Redbox supporters should be encouraged as another piece of evidence falls into place that refutes the studios’ claims.

Rebox plans to capitalize on these findings by expanding a test of sell-through machines that offer regular-priced DVDs under the brand Vidigo. The black-colored machines, currently being tested in Los Angeles, contain new releases and catalog tiles priced between $19.96 and $20.95. The machines are seen by the company as a complement to its red $1 per night rental kiosks and will soon be tested in locations such as convenience stores where Redbox machines have become quite common.

Does this new information go a long way towards justifying Redbox’s protestations of innocence, Insiders? What is the response going to be from the other side? Would you be interested in purchasing DVDs from the new “black box” machines? Take a minute and give us your thoughts.

[via Video Business]

14 Responses to “Study: Rental Kiosks Don’t Cannibalize DVD Sales”

  1. Member [Join Now]
    Mark [rb123456789]

    It’s “compl[b]e[/b]ment”. Not “compliment”. Sorry, a nitpick, but its misuse is a pet peeve of mine.

  2. Visitor [Join Now]
    justme [visitor]

    I would never pay $19.96 or $20.95 for a dvd! The most I’ve ever paid is 10 dollars and I have to really like the movie to pay that much!

  3. Visitor [Join Now]
    Jody [visitor]

    It would be easier to buy from the machine if that’s all I wanted to buy. But, as it’s been said, I have to really like the movie (I will buy Zombieland when it comes out!) to spend $20 of my hard earned money, and that doesn’t happen very often anymore.

  4. Visitor [Join Now]
    MarcD [visitor]

    I do agree with you guys, Redbox $1 rental attract value-minded folks like us, but trying to sell us new release DVDs for $20+ a pop is totally insane! May be they should sell previewed movies for $4 to $10 apiece in one of those black boxes, that would make a lot more sense and more in line with what they stand for – VALUE.

    • Visitor [Join Now]
      Glen [visitor]

      I agree with MarcD completely. Trying to sell new DVD’s at that price point just does not make sense. Were is Redbox with what I am sure would be 100,000’s ex rental dvds they could sell in a value price like you suggested, 4-10. It seems like it would add value for the consumer and to there bottom line since they could have a better distribution for there ex-rentals.

  5. Visitor [Join Now]
    Miranda [visitor]

    The only way I ever buy a movie is if I’ve seen it and know that I not only like it but really love it. Redbox has let me do that, so yes, I have bought more movies since we started using redbox. Interesting, I’d never realized that!

  6. Visitor [Join Now]
    michael [visitor]

    i believe the 7.95 post rented movies being tested in some redboxes is a much more affordiable then the new vid black box idea also with space being gobbled up by all these machines a 2 in one machine concept is better not to mention the electricity multiple machines use harming the enviroment

    • Visitor [Join Now]
      synister [visitor]

      what enviroment areyou living in, that its harmful for a dual machine 2 function versus other real harmful things;such as fumes and space is more abundant in the US of A, try looking into japan, now they truely have ways of utilizing what little space they have.
      but I agree with the new black box. I would just otherwise buy at the store or online the movies that stand the test of time,not just some flick of the month.

  7. Visitor [Join Now]
    Sean [visitor]

    Not for that price. A question though; with these black boxes, would you be able to get the REAL case, sealed, just like off the shelves of wal-mart? Better at least be able to do that for that price.

  8. Member [Join Now]
    HailDarkLord [haildarklord]

    It seems we all agree. The point is more value or no sale. We had that in mind since the opening idea of Redbox. A $20 black box DVD would have to contain some radically better value and the entire box, sealed and new. I agree also that I can purchase a new DVD from Walmart for $10 and less.

    A better idea would be coupons (dispensed at the machine, not through email) which gave renters $0.50 off the next movie the bought at Walmart. These coupons could be ‘stacked’ and after 20 rentals, we had enough for a $10 DVD. But the idea that we will pay $20 for “new releases and catalog tiles” is a very poor concept given our thrifty nature by using Redbox.

    As a last idea, how about OLDER USED $3 titles sold used at Redbox machines? These could be video store titles that have lived out their days and are ready to go home? This would make the small stored happier because they are included and Redbox would distribute the re-sales when they dropped new releases in the machine weekly.

    Once again, a lower price of $10, the original box, and a new DVD for anything over $10 is needed to pass public review. I suggest $3 catalog and $10 new release or even $10 for a movie that came out 3 months before as new.

    The idea is to save money on DVD’s and thus buy more. Not randomly look for places to buy new ones. ~ Jim Grim “The HailDarkLord Show” on

  9. Visitor [Join Now]
    Daddy12 [visitor]

    Apparently I cannot tip the performers so that leaves it up to the developers to work out a payscale to bring in entertainment. ,