Comments on: Worst Case Scenarios: If Redbox Loses

By: store owner

store owner — Wed, 09 Dec 2009 16:36:11 +0000

AT my store it’s $ 3.49 for 5 days or $2.00 for 1 day. Cost of rent employees insurance that all adds up, but I think it’s a fair price.

By: Marc

Marc — Wed, 09 Dec 2009 16:03:04 +0000

For me, this is Napster all over again. Granted, with Napster the music companies got nothing, but now the movie studios are falling into the same trap. They can’t believe their monopoly (cash cow) is dissapearing, and rather than embrace, and figure out how to monetize, they sue. All things change, ride it or die!

By: Joe Schmuck

Joe Schmuck — Fri, 30 Oct 2009 00:15:53 +0000

Analyst: ‘Trigger Day’ Looms for Paramount, Redbox

By : Erik Gruenwedel | Posted: 29 Oct 2009
egruenwedel@questex.com

The long-term viability of Redbox will bear increased scrutiny in the coming weeks as at least one major studio decides whether to continue distributing titles to the $1-per-day movie DVD rental kiosk operator or opts out to pursue growing industry support for a “sales-only” window, according to an analyst.

Merriman Curhan Ford financial analyst Eric Wold said he believes Paramount Home Entertainment will by Dec. 15 decide whether to extend or opt out distributing new release DVDs via Redbox.

Paramount, whose three titles, Transformers: Revenge of the Fallen, G.I. Joe: The Rise of Cobra and Star Trek, rank among the top fourth quarter home entertainment releases, in August signed a five-year distribution deal with Redbox that calls for the kiosk operator to pay the studio $575 million in revenue through 2014.

Warner Home Video, Universal Studios Home Entertainment and 20th Century Fox Home Entertainment have collectively delayed distributing new releases to kiosks until at least 28 days after street date.

Sony Pictures Home Entertainment and Lionsgate have separate distribution deals with Redbox.

“We believe investors will be watching for that decision closely given that Paramount will have a significant level of information on rental trends and sales information at its fingertips ahead of time,” Wold wrote in a note. “Clearly, if Paramount believes that Redbox is negatively impacting sales trends and/or not positively impacting overall home video revenues, then they are unlikely to extend the deal.”

Paramount has the fifth-largest market share in the home video rental industry, with 10.6% of industry rental revenues during 2008 and 9.9% through the first half of 2009, according to Rentrak.

Indeed, Rob Moore, vice chairman of Paramount Pictures, recently reiterated the studio would carefully analyze kiosk distribution’s impact on its “overall revenue profile.”

As kiosks and Redbox, in particular, remain in the crosshairs, there is increased industry buzz about studios and rentailers, including Netflix and Blockbuster, hammering out a new release hierarchy spearheaded by a “sales only” window.

Reed Hastings, co-founder and CEO of Netflix, said he would be amenable to such an arrangement provided the economics (license fees and/or revenue sharing) were appealing, and studios appear to be listening.

“The studios might try to implement something like this to increase demand for sales,” SNL Kagan analyst Wade Holden told the Los Angeles Times.

Then again, the First Sale Doctrine allows that consumers of legally purchased intellectual property, including DVDs, have the right to resell them. It is exactly this provision in the law that has Redbox reportedly negotiating with Wal-Mart as a potential source for DVDs from Warner, Fox and Universal.

“Nothing would stop Netflix from renting titles under First Sale, other than the risk of losing the discount,” said Fred von Lohmann, senior staff attorney with the Electronic Frontier Foundation.

Lohmann said the value of new releases in the first two weeks can’t be understated, as they represent the bulk of kiosk’s appeal and revenue.

“If Redbox had to buy at Wal-Mart and truck titles to the kiosks, that slows down their process and reduces margins,” he said. “They can do it, but probably would rather not.”

By: The Turnip

The Turnip — Thu, 29 Oct 2009 21:42:09 +0000

I was hoping to find “BG: The Plan”, but I really didn’t expect them to have it. Redbox didn’t carry the last two Futurama movies or the Dead Like Me movie; they seem to be passing on most TV-related content.

By: John Small

John Small — Thu, 29 Oct 2009 20:46:54 +0000

It is available for rent at most B&M video rental stores. Make the trip and enjoy the movie.

By: motch6

motch6 — Thu, 29 Oct 2009 18:03:59 +0000

Something must have gone in to affect! Where is Battlestar Galactica: The Plan ?

Anyone… ? I’ve tried to find somewhere on the net where it mentions something about why RedBox doesn’t have this… can’t find it…. ?

SO, did sometin happen

By: Joe Schmuck

Joe Schmuck — Wed, 28 Oct 2009 14:59:47 +0000

YES!

By: rbrannan

rbrannan — Wed, 28 Oct 2009 14:42:54 +0000

Agree. I’d rather wait a few weeks for a new release dvd to come to Redbox so the cost stays low to Redbox and that savings continues to the consumer by keeping their $1 rental price.

By: Mark

Mark — Wed, 28 Oct 2009 14:26:37 +0000

“A Redbox representative was not immediately available for comment”… because of uncontrollable laughter.

She had 2 late fees, and is seeking $350k + legal fees? What an idiot.

Oh, and @Joe: “REDICULOUS”…. pun intended?

By: jessi

jessi — Wed, 28 Oct 2009 14:10:45 +0000

I totally agree with you on pretty much everything you said. Yes, the ideal thing to do would be to make a deal with Walmart. And, yes I do believe it would cause alot of people, not just you and I to rent less. The economy sucks right now. No one really has any extra at the end of the month. That is why RED BOX rocks. But, sometimes things happen that no one really has much control over. The big movie execs. grow greedier every day. They see RED BOX for what it is. COMPETITION! It kills them to know that someone else is making money and they can’t get their greedy hands on any of it. As for people taking care of the dvd’s better, I totally agree! Nothing makes me quite as mad as renting a movie, watching two- thirds of it then, it starts freezing and skipping. I have a 9 year old son. He has been taught how to handle dvd’s. All parents could teach their children this. I think the problem is that alot of parents today rely on their T.V. too much as a babysitter. The kids do their own thing with dvd’s and some parents simply don’t care because they have $1 in the movie and, they are taking it back tomorrow. Maybe that’s one way RED BOX could cut on cost. Charge for ruined discs. It would be kinda hard to determine exactly who ruined it but, where there’s a will, there’s a way. Good Luck RED BOX! You are awesome.

P.S. Even if you did have to raise prices, I believe people would still rent from you. Maybe not as much but, they would definatley be there.