Update: Coinstar filed a 8-K that states that they will pay Sony $460 million as part of the deal. [via KioskMarketplace.]
Engadget HD reports that DVD kiosk company Redbox has worked out deals with Sony, Lions Gate & Disney, but Inside Redbox noticed that Coraline, one of the big Universal releases this week, was missing from Redbox.
The studios are worried that the $1 per night rentals will impact DVD sales (where most of the profit is made from a movie), but Redbox's 15,000 kiosks are just the start as Blockbuster plans to launch 10,000 next year. It'll be interesting to see if DVD sales decline because of kiosks, cheap Blu-ray players, or online video.
Has the fact that neflix having over 10 million subscribers effected DVD sales? if the answer is no then I somehow doubt that these kiosks will effect it either. Heck I'm not even seeing how they will impact netflix. Every subscription plan unless you hold onto movies for more time than needed along with instant watch you are paying far less than $1 per movie. so for the 8.99 plan watch more than 9 movies and you are spending less than with the kiosks, 13.99 14 movies, 16.99 17 movies, etc. Obviously one would not go with a plan that means spending too much for each movie since there would be cheaper options per movie. It boils down to how many movies you want to see in a month. Netflix seems to have all the bases covered on that point and I only a company offering as good of a service for cheaper would be a viable alternative to them.
Posted by: Jason | July 21, 2009 at 11:27 PM
I don't see how the kiosk will effect the sales of dvd's. we have 3 redbox machines and a dvd express machine and a blockbuster here in town and dvd sales at walmart and kmart are still pretty good from what I see. So if they are worried about how the kisok will effect the sales of dvd's then they are crazy.
Posted by: Christopher | July 22, 2009 at 12:50 AM
All the redboxes in my town are in grocery stores.
I haven't bought a DVD for over 5 years now.
Posted by: Del | July 22, 2009 at 02:06 PM
I just rented Coraline from one of the new Wal-Mart machines, but the DVD is from Alliance Canada, not Universal.
The Wal-mart machines are nice, especially since they have games, but they're kind of slow compared to the Redbox.
Posted by: Muggs | July 22, 2009 at 06:07 PM
I don't really understand why anyone buys DVDs, other than (a) a small number of classics and (b) kids discs.
Posted by: Hunter McDaniel | July 22, 2009 at 07:08 PM
Who is to live happy! Have to live with dignity! Like lions to live! Lion is a symbol of power! Lion gives the impression that the sanctity of side
Posted by: Jordan 1 | August 21, 2010 at 05:30 AM