By : Erik Gruenwedel | Posted: 23 Aug 2010
egruenwedel@questex.com
The continuing assault on packaged media has resulted in the current five-day window between a typical DVD/Blu-ray Disc release and subsequent video-on-demand offering, according to an analyst.
Since 2006, the window between the physical media retail date and cable VOD has shrunk from fewer than 45 days [...]
By : Chris Tribbey | Posted: 09 Aug 2010
ctribbey@questex.com
Paul Davis, CEO of Redbox parent Coinstar, said Aug. 9 that while his company is working on its digital-delivery plan, to be introduced in the fourth quarter, physical DVD rental hasn’t topped out. Not even close.
“Today, by far, the preferred medium [for rental] is physical DVD,” [...]
“(Brick-and-mortar stores) are falling like dominos. Soon it’s going to be Netflix and redbox, if it’s not already. They serve two needs, redbox for new releases and Netflix for older movies,” Mendelsohn said.
Total spending on video rentals declined 4.9% to $3 billion as retail chain Movie Gallery closed stores, and consumers flocked to the fast-growing number of $1-a-night DVD rental kiosks like the ones operated by Redbox. Kiosk revenue was up 55%.
Next in line for most viewers is the Kiosks where movie watchers rent movies from a retail outlet like RedBox with more than 40% saying they use this type service, while 26% of these consumers indicating a willingness to increase use of this venue.
In the escalation of self-serve kiosk DVD movie rentals, MOD Systems has taken a path less traveled. Instead of packaged media, Seattle-based MOD Systems has opted for electronic distribution of movies and music to portable media devices, USB and Secure Digital (SD) cards through an open standards platform that supports MP3 and Flash-based storage.
Redbox Automated Retail, which operates some of the kiosks, said in a statement that its business is covered by “well-defined constitutional protections.”
And with Redbox boosting the number of its automated video-rental kiosks, the traditional video-store business model appears doomed. At this point, Blockbuster appears headed for the same fate as Movie Gallery. At one time, Movie Gallery was one of Blockbuster’s biggest brick-and-mortar competitors, but last week it filed for bankruptcy protection for the second time since 2007.
Convergence has had Blockbuster Inc. in its cross hairs for years. Who needs a brick-and-mortar video rental store, the reasoning went, once Wal-Mart started pricing DVDs cheap enough to buy? And, more recently, why shell out $19.99 a month for Blockbuster Total Access when one of 19,000 Redbox kiosks not only resides in your local supermarket but dispenses DVDs for $1 a pop? Now, of course, Netflix Inc. mailings and online delivery systems are reducing the idea of leaving the house on a movie run to an antiquated option.
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