Paramount Says 28 Day Delay On Redbox Makes No Sense; Doesn't Cannibalize DVD Sales
from the good-for-them dept
While some of the Big 6 studios have been incredibly anti-Redbox, Viacom's Paramount has always been the most reasonable towards the DVD-rental kiosk provider. So it really comes as little surprise that Paramount has announced that, after testing delayed movie releases through Redbox it sees absolutely no reason to keep delaying such releases and instead will offer new release movies on Redbox at the same time the DVD goes on sale:"There were two conclusions we came to," said Dennis Maguire, president of Paramount Home Entertainment. "There hasn't been a cannibalization of DVD sales from Redbox, and Redbox was allowing us to expand our business and ultimately make more money" than if the studio held back its DVDs to Redbox for a period of time.Of course, this is exactly what many people said when studios like Warner Bros., Universal and Fox demanded the 28 day release, but it's nice to at least see Paramount actually looking at the data and realizing that Redbox isn't the evil destroyer of Hollywood that some of its competitors have made it out to be.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: delays, dvds, rentals
Companies: paramount, redbox, viacom
Reader Comments
Subscribe: RSS
View by: Time | Thread
Double standard?
Of course, I think the 28 day delay that the studios have on Redbox is ridiculous, but if they are imposing the delay on Redbox, shouldn't they also be imposing the delay on Blockbuster now too?
[ link to this | view in chronology ]
Re: Double standard?
[ link to this | view in chronology ]
Re: Double standard?
[ link to this | view in chronology ]
Re: Re: Double standard?
[ link to this | view in chronology ]
Ripe for competition ....
Redbox estimated that it would pay Paramount $575 million over the life of the agreement."
With the drain in income to RedBox from this deal it makes competition an option. Find out the specifics of the deal, cost per rental, time table if the cost per rental fees are reduced like they are with movie theaters, determine if there is a resale clause in the contract. Then turn around and rent at a price point they can not possibly compete with. Sell the used DVD's to increase your profits.
Failure of RedBox and Failure of blockbuster kiosks in short order.
[ link to this | view in chronology ]
Fuck Hollywood
Good on Paramount, but I don't keep track of studios and I'm likely going to be pissed when I hit the local Redbox.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
I ignored it thinking this cant be true!! what is this world coming to? Whats next? RIAA doing a study that not going after record labels customers and reducing the price of a music download increases sales.
[ link to this | view in chronology ]
Re: Re:
How does that help the RIAA?
That's the trick, collection societies only profit if they can collect. A lot. From everyone.
[ link to this | view in chronology ]
Re: Re: Re:
Yes but by reducing the price they would be increasing sales, making more money.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Who will be next?
I know Disney will be last :)
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
You want to know what would be hilarious?
[ link to this | view in chronology ]
Re: You want to know what would be hilarious?
http://blogs.bnet.com/business-news/?p=2762
Lets hope it is sooner than later.
[ link to this | view in chronology ]
Re: Re: You want to know what would be hilarious?
RedBox and Netflix are cheaper and a better deal.
[ link to this | view in chronology ]
It's the Prisoner's Dillemma
Otherwise, they face people going online and pirating the things rather than Red boxing it.
[ link to this | view in chronology ]
[ link to this | view in chronology ]