Redbox has Hollywood Boiling Mad

[scheming daemons]

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Redbox’s growth — it started with 12 kiosks in 2004 and now processes about 80 transactions a second on Friday nights — has Hollywood’s blood boiling.

Furious about a potential cannibalization of DVD sales and a broader price devaluation of their product, three studios (20th Century Fox, Warner Brothers and Universal) are refusing to sell DVDs to Redbox until at least 28 days after they arrive in stores.

Redbox is suing them on antitrust grounds. Leery of waging their own battles, two other studios, Sony Pictures and Paramount Pictures, have signed distribution deals with the vending company. Walt Disney permits third-party distributors to sell to Redbox but has so far shunned a direct relationship.

Redbox and its vending rivals now have 19 percent of the rental market, compared with 36 percent for rent-by-mail services (Netflix) and 45 percent for traditional stores, according to the NPD Group, a market research company. NPD estimates that vending will grow to a 30 percent share by the end of next year, at the expense of traditional stores.

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http://www.cnbc.com/id/32723012



Once again, the big boys are out to destroy the innovative little guy.

I support Redbox... I've used the service and it is great. But even if I didn't, I can't stand when big corporations try to stifle innovation.

[FormerDittoHead]

1. "...28 days after they arrive in stores"? You mean, like when we can BUY them for $12?

It sounds like they think they can go back to charging $100 for a VHS of "Star Wars"...

[OffWithTheirHeads]

2. Netflix rocks!

Fast, easy, cheap. You can watch movies on your computer and with since I got the Roku box I have not watched commercial (read 20 minutes of each hour full of insipid attempts to sell us crap we don't need )T.V. at all.

[elocs]

3. I stopped Red Box once I got Netflix streaming and a Roku box.

Thousands of hours of movies, documentaries, and tv shows. It looks great on my 50" plasma. Plus, for $10.95 a month I can get 3 BluRay dvds each week. This is hands down the best entertainment deal I have ever gotten.

[The Gunslinger]

4. I'll wait the 28 days.

$1 video rentals. I can look online to see to see if the movie I want is available before I go there to get it. I'll stay with Redbox

[RB TexLa]

5. Little guys? McDonalds is now a little guy?

[scheming daemons]

6. McDonald's doesn't own Redbox anymore

[Deja Q]

7. Shoudn't that be plural; "products"? Different companies that sell many, it is "products".

And looking at enough products coming out of hollywuss, they're devaluing themselves. They don't need a Redbox or anything else. They're cheap enough as it is...