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Independent retailers start campaign against Redbox

Written by Andre Yoskowitz (Google+) @ 05 Sep 2009 19:14 User comments (15)

Independent retailers start campaign against Redbox Redbox, the $1-a-night DVD rental kiosk company, is under fire again this week, this time from independent retailers who claim the company's business model is putting the entire industry at risk.
In other news, a new study by research firm SNL Kagan has suggested that the business model will put VOD companies out of business as well. This is all on top of lawsuits Redbox is currently facing from three major studios Fox, Universal and Warner Entertainment , over the low cost rentals.

The main independent retailer group, The Video Buyers Group, says their retailers are "struggling to compete" and the company is looking to the major studios for support in their campaign against Redbox. VBG is in charge of 1700 shops.

The group will be releasing online, print and TV ads showing that movie studios earn less revenue from the $1 USD rentals, and eventually profitability will begin declining as well.

VBG president Ted Engen even boldly stated the following: “Dollar rental kiosks are to the film industry as the Internet was to the music industry. That’s how bad this thing can get.”

No one else is part of the campaign as of yet, but at least one studio exec sympathizes.

“One company can’t be allowed to artificially reduce the value and availability of movies,” said the source, via VB. “Redbox’s short-term gains will shortly wreak havoc on producers, writers, laborers and ultimately consumers who love a broad selection of movies. If you don’t work with Redbox on its terms, it sues.”

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15 user comments

15.9.2009 19:26

Shift Happens!

25.9.2009 20:11

Well it looks like the old business model is in danger because it is obsolete. They have to adapt and if they can't they will go out of business. That is the way it works.

35.9.2009 20:33

Welcome to the new millennium. There are two types of companies ones that will adapt or go bye-bye.

Seems companies are going to need to be more agile and offer something customers want rather than have a protected business model where they don't need to offer more.

I loved my old 8 track tapes, they look neat, still curious how they worked. Can't for get the sinking feeling when the machine ate the tape. Then CD and later DVDs, nor more fidelity loss over time, no one cried for saving 8-track tapes.

Only problem with Redbox is convenience, and late fees from what i could see if there are any. Netflix currently offers the best solution for me, no late fees, and possibly streaming the poor video stream immediately.

Welcome to the world of free enterprise and the world of change, companies need to adapt or die. Just the way of evolution in business :)

45.9.2009 20:59

Welcome to a capitalism edited by ddp!! This is what competition is all about. If you can't compete then get out of the business. They have big balls to sit and complain that they aren't making enough money, because someone is offering rental movies for less. Oh boo hoo

This message has been edited since its posting. Latest edit was made on 05 Sep 2009 @ 21:36

55.9.2009 21:56

One company can’t be allowed to artificially reduce the value and availability of movies”

If they were MPAA, it would be fine and dandy.

65.9.2009 22:58

Originally posted by Amak:
One company can’t be allowed to artificially reduce the value and availability of movies”

If they were MPAA, it would be fine and dandy.
There are laws that cover dumping, if the companies can prove Redbox is doing it they have a manor of recourse. If Redbox can come up with a better, more efficient business model, oh well game over for the others, they can provide the same service... Can't beat them, join them.

75.9.2009 23:47
jony218
Inactive

redbox is threatening the monopoly. The economy is in shambles, people who still has spare cash to watch a movie will rent it at the cheapest location. Many people have been priced out of the movie theaters with there $10.00 dollar ticket prices.

The big companies will need to do the unthinkable to compete "lower prices". In a free economy that always works. All these campaigns against redbox will only fail, and give redbox plenty of free advertising.

86.9.2009 4:49

Lets see, you can go to a rental store and rent a movie for 5 days for $4.95, that's 99 cents a day. You can go to Blockbusters kiosk and rent the same movies for a dollar a day.
They are just afraid of not having a monopoly and want to stifle all competition.

96.9.2009 12:42

Quote:
“Dollar rental kiosks are to the film industry as the Internet was to the music industry. That’s how bad this thing can get.”

And yet there are still music artists and cd's....

106.9.2009 14:52

Originally posted by jony218:
redbox is threatening the monopoly. ... All these campaigns against redbox will only fail, and give redbox plenty of free advertising.
Real quick, there's no monopoly. My nearest Blockbuster is so far from me I would never consider it. Okay, but what I really wanted to say was I agree about the free advertising for Redbox. This can only be good for them, most people will hear about Redbox or take notice long enough to ask the question, "What is a Redbox???" And that's exactly what they want.

For me, Redbox is nice as a sort of add-on for my Netflix 3-DVD plan. When I'm out of Netflix movies, waiting for them to arrive in snail mail, I can always run down to my Redbox which is just over a mile away! I'm loving it.
I'm a little concerned, though, about all the extra traffic it will generate near the entrance to my local supermarket. A lot of handicapped people and old lady's may get startled by someone rushing to return a DVD at 8:59pm.

116.9.2009 15:55

Originally posted by jony218:
Many people have been priced out of the movie theaters with there $10.00 dollar ticket prices.
And movies continue to set new records and pack theaters. Even at $20 per ticket people would line up and bend over. lol

Los Angeles Times
7/15/2009
"Harry Potter and The Half-Blood Prince" conjured up $22.2 million in midnight ticket sales at 3,003 locations, according to Warner Bros., putting the popular boy-wizard movie on track for a record-breaking debut today and through the weekend.

127.9.2009 2:47
pphoenix
Inactive

Quote:
The main independent retailer group, The Video Buyers Group, says their retailers are "struggling to compete" and the company is looking to the major studios for support in their campaign against Redbox. VBG is in charge of 1700 shops.
so before redbox was there price fixing between the competing businesses.

i thought that the USA like the UK was an open market, & price fixing monopolies are not allowed or am i mistaken?

137.9.2009 2:55

This is really out of control. Redbox has benn around for some years. But overnight its become a threat to Movie Studios and VOD companys? Sounds reatarted.
According to wiki, it was introduced to the public in 2002, before BOOTLEGGING became the problem it is today...
The market struggels and its trying to squeeze out competition? Its all it is. Retarted

1411.9.2009 11:01

I'd pay an extra dime if they could clean off all the crap on the DVD left by the sticky fingers of little kids.

1511.9.2009 14:01

BooHoo, I don't want to learn how to run a profitable business in a competitive environment so I have to hope I can can talk the media mafia into making one of it's purchased congressman make my competition illegal.

GOOD, PLEASE, go out of business, we don't like you're terrible service and horrible fees anyways. Besides, how could it POSSIBLY be bad for the world to stop paying incompetent actors like Tom Cruise $50 million for 6 weeks of HORRIBLE work. Hollywood and the government run mainstream media industry are a GIANT part of why our world is so screwed up today anyways. If it weren't for those two in collusion, we might actually be able to fight against the threat to our very civilization, and be willing to be informed about the totalitarian take over of the world and the US Gov't.

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