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VBG Goes to the Mattresses

al-pacino-the-godfather-photograp1Minneapolis-based Video Buyers Group (VBG) will be launching an anti-kiosk campaign this month in its 1,700 member stores. The objective of the promotion is to persuade customers that traditional stores, not $1 per night machines, offer a superior selection and rental experience.

The promotion is at least in part a bid to capitalize on the imminent delay several studios will be imposing on movies going to the kiosk rental channel. The theme of the campaign, ‘Available Here First’, is a dig at the minimum of 30 days Redbox, etc. will have to wait to obtain titles from the studios. Posters and stickers will be available to VBG members at no cost, and a small fee will be charged to other retailers that wish to participate.

According to VBG president Ted Engen, non-group member Family Video will place the posters in its locations as well.

“This program underscores the advantage that traditional rentailers have,” said Engen. “We have talked to Family Video, and they are joining efforts with us. We all want to [spread the message] to consumers that $1 rentals are devaluing our industry. You have a situation where a bottle of pop has about the same value as a night of entertainment.”

It will be interesting to see what effect, if any, this campaign has on consumer opinion and rental habits. Redbox has thus far proven itself fairly resistant to the delay previously imposed on by Universal. The kiosk operator has continued to stock Universal titles on their release dates by obtaining the films from other sources, and will presuambly do the same with Warner and Fox titles. The financial impact on Redbox from these mounting alternate purchases  is open for debate. Redbox, of course, has recently launched its own PR campaign defending its business model.

On to the comments, Insiders, and let us know what you think will come of VBG’s anti-Redbox crusade. Will it be effective, or are they making consumers an offer they’ll refuse?

[via Video Business]

51 Responses to “VBG Goes to the Mattresses”

  1. Visitor [Join Now]
    Johnny Knox [visitor]

    Sour grapes is all it is.. those who can, do.. those who can’t, start mudslinging.

    • Visitor [Join Now]
      greg [visitor]
      I work with VBG. To find out why this is important, click here.

      Can or Can’t Do what?

      It’s only a sign that mentions available here first.

      Not a big deal either way, not even sure why even “Dig” this up.

    • Visitor [Join Now]
      John Small [visitor]

      I guess that would be Redbox who started the mudslinging with their PR campaign then. Redbox can’t. You are correct.

  2. Member [Join Now]
    moviecrazy [moviecrazy-3]
    I work for VBG. To find out why this is important, click here.

    Sounds like some retailers taking care of an itch. Not a bad marketing plan.

    • Visitor [Join Now]
      rumblefish [visitor]

      Yeah…GREAT marketing plan

      The posters will be hung in the VBG Video stores. If a customer is to see it one woudl assume that customer has pretty much already decided that they prefer that video store to the kiosk experience so who are they persuading?

      These stores should stick to what keeps them in business…make your porn selection even bigger and continue to break street date and rent your new releases on the Friday before street date. Stop with all this noble crap…so silly..

      • Visitor [Join Now]
        rb [visitor]
        I work for VBG. To find out why this is important, click here.

        You obviously know nothing about video stores and how they are run. Your just angry because someone is messing with your redbox. Your whole little comment is just filled with spite. It’ll be ok.. there! there!

  3. Visitor [Join Now]
    DanTheMan [visitor]

    People that rent movies from ‘Rentailers’, probably do not rent much from kiosks. Therefore, they may be preaching to the choir.

  4. Visitor [Join Now]
    Iwantitnow [visitor]
    I work for VBG. To find out why this is important, click here.

    I would go to a video store and pay the extra dollar to rent it 30 days earlier. Because when it all adds up I would get to keep the movie for a couple days which I would do at redbox anyways. So same price 30 days earlier.

  5. Visitor [Join Now]
    redman [visitor]
    I work for VBG. To find out why this is important, click here.

    I’m glad I can at least find the movie on the release day. I guess going to a video store is kind of entertainment in itself. I probabally would go back to some place like Block Buster instead of wait 30-45 days. If I was waiting that long to watch a movie I could just wait 1 or 2 more month and watch it on cable. I like paying $1 for rentals but not enough to wait an extra month and a half.

    • Visitor [Join Now]
      rb [visitor]

      I don’t find it “entertainment in itself” going to a video store and paying $5 for a rental. If I’m going to pay $5 and want a true “entertainment” experience, then I’ll stick with paying $5 at a matinee showing of the movie at the theater when the movie first comes to the theater.

      • Visitor [Join Now]
        redman [visitor]
        I work for VBG. To find out why this is important, click here.

        I think it’s entertaining in a video store seeing what’s out actually looking at the backs of the movies. Maybe it’s just me but I get alot more out of that then looking at a screen. Something about physically looking at a movie before I rent it. It’s also harder in a movie store finding something to watch because there is more to choose from.

        • Visitor [Join Now]
          rb [visitor]

          I dunno’… I just go to Rotten Tomatoes or other internet reviews, or watch trailers for the movie online before deciding if it’s worth renting. It’s more entertaining for me to know that I’ll save $3 or $4 renting at Redbox than the video stores.

          • Visitor [Join Now]
            rb [visitor]
            I work for VBG. To find out why this is important, click here.

            How are you saving $3 or $4 dollars at red box. Last time I checked at a local video stores it’s not much more then $2 to rent a movie. That’s $1 and I would rather pay $1 extra and get the movie I want to see. I think family video and Hastings video are under $2 as well. I don’t know about Hollywood or BB.

          • Visitor [Join Now]
            rb [visitor]

            rb with yellow triangle smiling face says…..There are no Family
            Videos, Hastings, or even Ma and Pa video stores where I live. There’s a Hollywood Video up the road, and a BB much further away. One time I looked on the internet where the closest Family Video and it was in the next state! Besides, even if there was a Ma and Pa video store close by, I probably wouldn’t rent from them BECAUSE I know they’d have to charge much more than Redbox to make ends meet in THEIR small business. I realize it’s “politically correct” to just pay more for a rental at a ma and pa store just to somehow reflect that you support your community and small businesses. However, my thought is that in a community there may be ONE ma and pa family you are being politically correct in supporting by paying a higher rental price at their small business instead of paying $1 Redbox. In the actual community there may be 5,000 or more people/families trying to support/make ends meet for their OWN families whose family benefits more by budgeting/spending only $1 at Redbox and using the money saved for other family necessities. I realize I’m not being politically correct–just honest.

          • Visitor [Join Now]
            rb [visitor]
            I work for VBG. To find out why this is important, click here.

            Well if you have no video stores with in hundreds of of you miles except hollywood or blockbuster I guess you’ll just have to get used to waiting to watch your movies and keep getting stuck with your limited selection. At least you’ll save your $1.

          • Visitor [Join Now]
            Carson [visitor]

            This conversation definitely makes more sense now with the VBG tag added… I thought it was rather silly that someone would find it ‘entertaining’ to wait in line at blockbuster…should’ve known it was just an plug for retailers!

  6. Visitor [Join Now]
    Jim [visitor]
    I work for VBG. To find out why this is important, click here.

    Doesn’t sound like anybody really cares for redbox in the movie biz.

    • Member [Join Now]
      coolicebreaker

      are you reading or are you closing your eyes and trying to listen to see if anyone of your pathetic attempts to persway others to your liking or to your business liking?????

  7. Visitor [Join Now]
    justme [visitor]

    All this will do is advertise even more for Redbox! When people see the sign they will say to themselves….I can rent that new movie for a dollar instead of what these people charge? Hmmm, I think I’ll go to a Redbox and rent it instead! VBG will have this anti-redbox campaign blow up in their faces! What morons!

    • Visitor [Join Now]
      Linda [visitor]
      I work for VBG. To find out why this is important, click here.

      How can a thing that says available here 1st blow up in their face? I’m not getting it sounds to me like a positive campaign people who want it first go there.

      • Member [Join Now]
        coolicebreaker

        what people?? your people in your own conjured up mind. oh how I couldnt see it before and now I do the tags are making way more sense .

        positive as aids…lol

    • Visitor [Join Now]
      rb [visitor]

      Excellent point! This anti-Redbox campaign will just make more people aware of Redbox’s $1 value!

      • Visitor [Join Now]
        Linda [visitor]
        I work for VBG. To find out why this is important, click here.

        Yeah it will make them aware that after 30days they can get it for $1. It will also make them aware of the titles not being there. That can’t be good for red box.

        • Member [Join Now]
          coolicebreaker

          rebox is trying, yeah Ive had to go to BB. for some new releases not at REDBOX but it was only 2 instances. and guess how many redboxes I passed up while I was holding that BB rental in my hand on the way to BB only to have to return it back to that BB place even though another BB was down the street from me. I had rented for more than it should have been. And since I was at my girls place I had no choice but to return it to that same particular place and part of town.

          Now take this in account….I rent another movie from redbox and I have to go the north part of my town.san antonio . well I can just return it to any redbox where ever I may be or my destiny takes me

          can you top that????

        • Member [Join Now]
          Greeneyez026 [greeneyez026]

          ***NEWS FLASH***……If we are renting movies, then we obviously chose to wait instead of paying ridiculously high ticket prices to watch a movie in movie theaters when it first comes out! Therefore why would we be stupid enough to pay outrageous prices to rent those same movies at places like Blockbuster and Hollywood Video when we could (as we did when it was in theaters) wait a little longer and rent them from Redbox for a buck? Why would you, or anyone else for that matter, think it would be a big deal to us to wait another 30 days to watch a movie at a very reasonable price through Redbox???? After all, the movie was on screen in theaters for about 30 days…oh and then the 2-3 months wait time before they are eventually released onto dvd.
          If there is such an uproar in the film business in regards to money then why don’t they stop paying these actors loads, heaps and oodles of money (for which I might add most of them use to buy absurdly huge houses, plastic surgery, coke dealers, and 15 cars) to star in movies, while us normal people work hard just to cover our mortgage payment.
          When are you guys are gonna figure out that movies are entertainment not necessity?! And when times are tough as they are with all of us normal people right now…we are forced to put entertainment on the back burner due to prices and finance. I am sure you VBG people get the Sunday paper for the sales, shop around for the best deal on insurance, pick Wal-Mart for the cheapest prices on groceries, and go to the gas station with the least expensive gas. So why is it so terrible that we go for cheaper movie rental prices and hold out for the better deals?

          Question for all you Redbox haters….Do you go shopping on Black Friday and get the great deals on the things you want or do you buy it all the day before for full price!!!!

          Why don’t you guys waste your time on more important things like helping mine and everyone else’s Grandparents pay for their much needed prescription drugs or rally together to help keep families off the streets and food in children’s bellies, and get off our backs about saving a few bucks!!!

          A 2-liter of Dr. Pepper…$1.50
          A box of microwave popcorn…$2.00
          @ home watching a movie with your family for a buck…Thanks to Redbox…PRICELESS!

    • Visitor [Join Now]
      rb [visitor]
      I work for VBG. To find out why this is important, click here.

      When people start going to red box and the movies aren’t there people will stop going to red box $1 or not.

  8. Visitor [Join Now]
    Carson [visitor]

    I think a lot of people aren’t even aware of release dates. We are very aware because this is what we are all about. I think a lot of people rent from redbox as an impulse buy while they are walking out of a store, and figure a movie sounds like a good idea, and then just look to see what is available.
    This campaign will have no effect on RB.

  9. Visitor [Join Now]
    slidecage [visitor]

    people will just stop renting from redbox and go back to netflix..

    sorry but there is no way in #$#$# that i will ever pay 4.00 to rent a movie

  10. Visitor [Join Now]
    John Small [visitor]

    Redbox runs on such a small margin that all this campaign needs to do is take away 1% or 2% of Redbox’s customers and then Redbox really will be in the red.

    Their business model requires nothing to go wrong. Lots of things are going wrong. We’ll have to see what the results are when Coinstar reports next.

    • Member [Join Now]
      coolicebreaker

      who’s we?? and where are you getting your numbers ????are you a lunatic?

      people could get 1liter sodas cheaper at H.E.B. and wal-mart than valero but do they stop buying there? NO. its convinience and so as long as there is a redbox some where near me I would prob. rent some thing to watch while I get a bigmac or a condom or a gas for my moto, great thing about it is I can return it to any damn other redbox I damn please for the convinience.

      what can go wrong with people living life as it is? will everyone get crippled and not go out ? what maniac thoughts are flowing through that VBG mind of yours???

  11. Visitor [Join Now]
    The [visitor]

    Unfair Competition, and Antitrust suits will fly!

    Kiosk operators are being forced into a “lower” competitive position by the studios? Talk about unfair policies in distribution.

    On top of that, now the damage is being done, the “competition” is jumping all over this and actually using it as a marketing advantage?

    This is a great example for the courts to consider in their decision with the ongoing Universal, Warner, et al suit!

    “This program underscores the advantage that traditional rentailers have” – Yes it does, an UNFAIR advantage!!!

    You would think these companies would wait for the current lawsuit to be decided instead of making themselves targets for inclusion in the suit.

    • Visitor [Join Now]
      John Small [visitor]

      No unfair advantage. Redbox can still buy whatever product they want as long as they pay a fair price. There is no legal case here.

      • Visitor [Join Now]
        The [visitor]

        “Available here first” is a competitive advantage created by the studios unfair distribution policy. Giving the stores a unfair advantage.

        Collusion with the B & M stores is pretty clear to me.

        Kiosk operators are NOT paying a fair price if they get a different deal than all the other rental companies.

        Distribution companies better start being hands off and just distribute the products like every other type of distributor or else they will be paying some hefty fines soon.

        Do the distributors really want to get between the studios and the kiosk operators just to favor the studios? Do you think the studios will pay the fines for the distributors when things go bad? Is there a liability agreement between the two? I don’t think so.

        So HANDS OFF! Distribute fairly and evenly, everyone gets the same deal or there should be no deal.

        If the distributors want a easy “political” way out, ask the studios to sign a liability agreement that binds them hard to the ground if a fine comes in for this antitrust stuff, if they won’t sign then you have a easy way out. “Sorry Mr. Big Studio Executive, our business liability insurance won’t cover us for this sort of exposure, we can’t do it” (it’s called passing the buck and they do it all the time).

  12. Member [Join Now]
    ChadCronin [chadcronin]

    I’d rather wait. Not that there’s much to wait for.

  13. Member [Join Now]
    alans613

    The only movie I would be willing to rent on the first day would be “The Hangover”. Every other movie I can wait 30 days for. I can remember back in the VHS heyday of the 80s and 90s waiting SIX months for a movie to go to video. An extra 30 days won’t affect my Redbox habits a bit.

  14. Member [Join Now]
    moviecrazy [moviecrazy-3]
    I work for VBG. To find out why this is important, click here.

    A few people might want to wait. For the most part America is an immediate gratification society. If they can’t get something at one place right away they will go someplace else like a video store the extra $1 or $2 won’t even be an issue. We are talking about a society that will go out and pay $3 for a cup of coffee or an energy drink.

    • Member [Join Now]
      starfire008

      Did you notice how much Starbucks is struggling lately? They are having to close stores. People are going back to McDonalds to buy their coffee at a lesser price. Americans have learned an economic lesson from the recession – don’t squander your money. People won’t pay $3 – $5 for a vieo rental anymore – those days are gone. As other posters have noted, either adapt to the times or go the way of the dinosaur.

      • Member [Join Now]
        Robert [viper3256]

        Dinosaurs are gone? I swear I just saw them on the discovery channel!!! :P

        Good point starfire, alot of industries are changing with the times, others are not. The consumer and the economy will sort them all out.

    • Visitor [Join Now]
      The [visitor]

      Thanks, there’s another Unfair Competition point. “If they can’t get something at one place right away they will go someplace else”.

      All created by the studios unfair distribution policy. Giving the stores a unfair advantage. It’s pretty clear this is what the studios want to do with their distribution policy. There’s not many other reasons to short change the Kiosk operators and treat them different.

      Fines are coming if the distributors cooperate with the studios on this!

    • Member [Join Now]
      kduit

      You have a very limited view of the American’s I know. Myself and many friends don’t fall prey to this “gotta have it now” craze. If Redbox doesn’t have it, I guess that is one less person who will view that movie. One less person who would become interested in a sequel. One less person looking for merchandise. One less person who might like it well enough to spend money on purchase of the dvd or blu ray.

      How much in lost sales are they creating with their decisions???

      To me, the studio is shooting themselves in the pocketbook by not trying to take advantage of presence Redbox has created.

      Thanks to Redbox, I spend more money on renting movies.

  15. Member [Join Now]
    Crazybob @ SETI.USA [crazybob-setiusa]

    I used to go to BB about twice a month. Too expensive and the new releases were always gone. I rent from Redbox about 4-5 times a week. I rent movies there that I would have never rented from the stores. $1 a movie lets me take chances on movies I would have never tried before. I’ll wait the extra time. What are the stores going to do when the studios start making them buy copies of crap movies that no one will rent? I’ll stick with redbox.

  16. Member [Join Now]
    colinddaniel

    If some good movies don’t come out soon, I’m not going to rent anything, I like red box for the simple fact that I go to Wal mart and Walgreens regularly and as I pass the red box I rent a movie if there is anything worth renting but I’m not going to run to a store just to rent a movie, get out of my car, walk around in the store, go up and down the ailes lloking for a good movie, ain’t going to happen, didn’t happen before or will it again. Red box is on the way and simple to rent and go on my way, rent at one store and return at another store the next day when I’m shopping for something else, real simple and cheap

  17. Visitor [Join Now]
    Moviewatcher [visitor]

    I only rent movies from Redbox because it is quick and cheap and usually it is a last minute decision to rent a movie. Before Redbox I RARELY rented movies at all because I didn’t like going to the movie store with young children. Now I rent movies fairly often from Redbox since it is only $1 and I can usually find something for my children and another for myself and my husband for just $2. I don’t even pay attention to the release dates.

  18. Visitor [Join Now]
    Linda [visitor]

    Who cares about of this? I just want my DVD’s.

  19. Member [Join Now]
    Dewman1

    Redbox is to Video rentals & sales what walmart is to retail stores…..a low cost to those who can’t or won’t pay for the “Extras”. I too, love the RB kiosks, as I don’t get pissed off for renting a $1 movie that sucks. How do you feel after driving for 15-30 minutes to a video store, parking your car, and walking thru a dirty, germ filled store to get a movie that costs $5 ($4.60) and then turns out to be nothing you’re interested in? I’ll wait for the release, stop by a kiosk, as I walk into a walmart or walgreens and be entertained at my convience! It’s not my fault that the videos at BB or elsewhere cost so much because of the studios over-charging them!…..actors, and movie makers are over-paid. I remember paying $1 for NEW videos on VHS at the grocery store only a few years ago….. and DVD’s are cheaper to make now, so who is benefiting from a $5 movie? I rent movies because I hate going to the disgusting movie theater, so I wait for the release on DVD……. so if RB gets a later release, so be it! I save $$$ and still see a movie.

  20. Member [Join Now]
    mc.incid [mcincid]

    If somebody put all this whiny movie business drama in a Redbox and charged a dollar a night, would anybody watch it? Would it earn enough to make a sequel? What if Redbox was The Box and every time you pressed ‘rent’ you would get a million nights free but somebody you didn’t know would die? Then what?

    I’m just going to stop watching movies. I’m still depressed after wasting 2.4 hours of my life watching Transfomers 2.