Certain analysts weren’t the only ones to jump on the news that Redbox parent Coinstar was lowering the expectations for its upcoming Q4 2010 numbers. The Video Buyers Group (VBG), an outspoken opponent of the Redbox model, has been quick to claim a victory for the independent video store.
According to VBG president Ted Engen:
“Hell yes, there’s a good spin here for video stores,”
Engen reports that rental revenue increased at VBG member locations during the final months of 2010, and said that he believes that the 28-day window imposed on Redbox by the Hollywood Three is driving down traffic to Redbox kiosks. Said Engen:
“Consumers are just getting frustrated going to these boxes and just not finding anything worth watching . . . From our numbers, the buy/sell/trade business is up among our members. Warner, Universal and Fox keep telling everybody their sellthrough numbers are up and beat projections.”
A tired tirade from a proponent of a dying business model, or credible commentary on a shift in the home entertainment business? Visit the comments and weigh in with your thoughts on the VBG’s claims.
(via Home Media Magazine)