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.
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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)
Meanwhile back in the real World, Blockbuster is projected to close another 900 stores nationwide this year. That’s showing those Kiosk vendors whose boss. lol
I’ll be honest – I haven’t rented from Redbox in quite a while. Nor do I have a Netflix account, nor have I rented from any other video store. The 28-day delay hasn’t influenced me. If I didn’t see it in the movie theater and don’t plan to actually own a copy, I could care less when it hits a Redbox kiosk or another form of renting it. I’ll either catch it when it’s available or give it a pass. (Most likely, I just won’t have time to actually watch a movie so will just give it a pass.)
If anything, the main reason for lack of rentals/buying for me is because so many movies are just of no interest or are not worth my time to watch, even if I were paid to do so. I remember looking at the upcoming releases for the next couple of months and thinking “meh”. Not worth my time/money to see them in a theater and not worth it to rent once it hits disc format (likely in a short time).
I wish the “Hollywood Three” would look at what they’re actually peddling to see if traffic is down just because people don’t want to watch what they’re producing or because people really would prefer to own a movie. My guess – it’s because the movies aren’t worth watching and they’ve lost a sale except for selling to Redbox.
I agree with you 100%
I don’t believe them. This seems like pure spin.
Gee, it seems like only a few day ago I read that more movies were being rented from kiosks than stores…
I wonder what Mr. Small’s read of all this is?
You know the answer. The VBG numbers follow my predictions to a tee. Redbox is suffering from too much growth without understanding the business. That have an incompetent management team. This path has been followed many times before and always ended in collapse.
I hate to admit it, but I actually agree with JS.
redbox is going to hit a brick wall sometime within the next year
Be more specific on who redbox will lose its business to sometime in the next year.
Specifically, redbox will see *revenue growth flatten* out next year as it reaches a point of diminishing returns from kiosk saturation. How many will be willing to carry a gun to a 7-11 to rent?
Without growth from new kiosks, earnings will stagnate. The idiots who run the joint will cave from the pressure and raise prices, causing fewer rentals, not no rentals, just fewer–more stagnation.
Are there any must see titles heading for DVD distribution? Probably 2011 will be down from 2010 which was down from 2009–still more stagnation.
The net result, redbox’s **stock price** will ‘hit a brick wall’ in 2011.
Forget about VOD or any other distribution channel. All are irrelevant, regarding redbox’s niche business.
Nice wish list but Christmas is a year away.
Vern Dent and his innuendo. Way to start off your argument that customers will have to bring a gun to rent a movie. Looks like you failed with your argument before you even got going.
check out this thread…
http://www.insideredbox.com/public-media-works-inks-deal-for-500-kiosks/
Vernon. You know they don’t like the facts. Why are you even trying to reason with them?
Why do people like Peter bother commenting at all? Does he realize this is a blog about movies, yet his entire post is about how he doesn’t watch or rent or buy movies. WTF?
first in my city and city 15 mins from me they get the new movies in abou t a month anfter high priced theatres and the fromer theaters are only 1 dollar to see in a theatre and brand new movies about 1 month later and concession has drinks popcorn for 1 buck each
“…From our numbers, the buy/sell/trade business is up among our members…”
Apparently my town isn’t the only one that has seen an increase in buy/sell/trade media (MOVIES+GAMES) stores. That said, I’ve seen very little presence at the Redbox kiosks so far this year.
To be honest I only (on average) rent a movie once a week from the RedBox. The 28 day delay doesn’t mean that much to me because at the rate I rent movies I will probably almost always find something that I want to watch and I will get to watch it for only one dollar or possibly even get to watch it for free with one of the RedBox free rental codes. I absolutely love RedBox so much. RedBox has saved me so much money. I rarely ever go buy DVD’s anymore. I wait for them to hit the RedBox and then I rent them to see if they are worth spending 20 bucks for. I only just recently bought Avatar on DVD and was quite dissapointed that the movie was split up on two discs….. solid dissapointment on that….. and the last time before that when I bought a dvd was when X-MEN ORIGINS: WOLVERINE was put on disc…. other than that in the last year I really haven’t bought anything on dvd since I started renting from RedBox.
Now if there are more people out there like me who are doing the same thing and I’m sure there are I can’t really see RedBox’s growth falling too far behind this year…… now surely they may level out in growth at some point but whatever revenue they do take in is a lot that Blockbuster, Movie Gallery, Netflix, Video Warehouse, etc is not taking in and I think it all of those people who keep putting information like this out there because RedBox is putting them out of business and I think they are just mad and jealous as hell because they didn’t build the model themselves.
Vernon, First….HAHAHAHAHA I told you so- redbox = LOSER!