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Redbox passed 30,000 kiosks in Q4 2010, but still missed financial expectations
Redbox may be a red-logoed stepchild compared to industry darling Netflix, but according to its parent company Coinstar's Q4 earnings call, it still managed to pass the 30,000 kiosk milestone, increase market share to 30 percent and grow DVD revenue by 38 percent to $319.6 million. Combined with blowing by one billion rentals back in September and avoiding a lawsuit with Fox, the news would have culminated in champagne and karaoke for Coinstar shareholders... except for one thing: new releases underperformed during the last quarter along with Blu-ray rentals. Coinstar CEO Paul Davis was quick to bolster investor concerns on the call, however, stating company management had taken "definitive steps to correct the issues" and was ready to "leverage the First-sale doctrine" -- which refers to a Supreme Court ruling limiting the control of copyright holders over the re-selling of its property -- should studios get sassy in future distribution negotiations. More updates on the company's streaming plans didn't materialize, though, so you'll have to chuck those dreams of instant rental gratification for a buck back in the deep freeze at least in the near term. Otherwise, hit up the source links below to ogle data tables to your heart's content.
Blockbuster partially reaches back to the 90s, announces 3-day in store rentals with tiered pricing
Right on the heels of announcing that its on demand service was available on over 100 devices, Blockbuster has officially reduced in-store rentals periods from five to three days and established new pricing tiers. "Just arrived" Blu-rays and DVDs now cost $4.99, making them competitive with Redbox on a cost per day basis, especially when you consider the red vending machines must wait for up to 28 days later in some cases to get newer titles. Recent releases in circulation longer than six weeks cost $2.99 along with frequently rented "Top Picks," while older, and less popular titles -- think Weekend at Bernies -- have bottomed out to $0.99. According to company rep Patty Sullivan, these changes should help Blockbuster "continue to be a competitive force in the media business" and "simplify the rental experience." That sounds a lot like the same stance it took with the now dead no late fee scheme -- but who's keeping track? It also still seems expensive for frequent movie watchers compared to Netflix's basic $10 a month plan, which includes one rotating mailed disc along with unlimited streaming. So call us crazy, but somehow we don't see this move solving the company's bankruptcy woes anytime soon.
Flix on Stix kiosks coming soon: it's like Redbox, but with USB thumb drives
The concept's far from new -- Warner and Paramount signed up way back in the heyday known as "2009" to offer movies on SD cards, and select Blockbuster rental kiosks have been popping 'em out ever since. But Flix on Stix is an expected twist on the models that are already out there, and it's one that will no doubt face some difficulty in reaching the same level of acceptance as Redbox. Put simply (or as simply as possible), consumers waltz up to a kiosk, select a TV show, game or movie, and then they choose whether they'd like to purchase or rent the title. The outfit has yet to come clean with specific pricing, but the (presumably mocked up) video embedded after the break shows rental rates of $1, $2, $3 and $4 for 3, 6, 9 and 12 days. There's also no clear indication how TV episodes and games will be handled, but we're hearing that users can either bring their own USB stick (USB 3.0 is accepted!) or opt to procure one directly from the machine. Swipe your Visa or Mastercard (c'mon, no Discover or AMEX?), and then... wait. In fact, this is apt to be the biggest hurdle. What are the resolutions being offered? What if you select a 1080p film that's 7GB, and only have a 4GB USB drive? Or better yet, what if you've got a 8GB USB 2.0 drive and a doctor's appointment in ten minutes? Comically enough, the demonstration video actually shows the patron playing a game of poker while she waits for the transfer to complete -- something tells us that's not going to go over well with prospective customers waiting in line. We're guessing that most folks will peace right on out if the wait to purchase something from a box exceeds a few minutes, and given the very nature of this scheme, it sounds like that scenario is almost guaranteed to happen ad nauseum. At any rate, expect to see the first of these popping up in two to three months, and meanwhile we'll be digging for more details on pricing and distribution plans.
Redbox announces plans to enter streaming business next year
It may not be quite the same obvious transition that Netflix made, but it looks like DVD kiosk company Redbox will soon be making a push of its own into the streaming business. That word comes straight from the CEO of parent company Coinstar, Paul Davis, who told listeners to the company's recent earnings call that it is in "detailed negotiations with a number of highly interested parties" to launch a "Redbox-branded" streaming service sometime next year. That would seem to suggest that Redbox will be relying on a partner already established in the field rather than rolling its own service, but Davis was otherwise light on details, adding only that streaming represents a "significant opportunity" for the company. That doesn't mean Redbox will be getting out of the kiosk business anytime soon, though -- according to Davis, there's still a "long, profitable life ahead" there.
Redbox expanding game rentals to 'thousands' of its kiosks
Redbox has been playing around with video game rentals from its disc-spitting kiosks for a few years now, but the company has decided the program is ready for the big time, and will reportedly expand the program to "thousands" of its 24,000 machines around the country. Rentals cost $2 and let you take the game home for just one day, which, given the apparently shrinking lengths of popular titles, is more than doable, depending on the game and the day. If you want to find a box near you, you can punch your zipcode in on the company's official website and see if there are games in your neighborhood to be rented. Most of them seem to be at 7-Elevens or other convenience stores, which seems pretty convenient if you ask us.
Warner says Netflix 30 day delay works like a charm
Those who love to rent discs on the cheap were less than thrilled about the 30 day delay for Netflix and Redbox, but Warner is happy to report that the strategy paid off. We suspected as much after the latest DEG numbers showed a healthy rebound the quarter after the windows were enforced, but there's nothing like hearing it straight from the source. For those who missed it, the digital download and streaming services were the real winner there as they're still day-and-date with Blu-ray sales, and the studios are keen on 'em. Warner's CFO even went so far as to say "Digital is going to be good for our business, we think it is a great time to be in our business." To which we say, any business that isn't losing money is a great business to be in. So while many seemed to strongly oppose the new windows when announced, months later it seems most have learned that it's better to be patient and save money, than to pay $6 to stream a blocky mess.
Redbox crosses a billion rentals and celebrates with a giveaway
Someone (we're looking at you, Ben) notched Redbox's billionth rental recently in Tampa, Florida recently, and to celebrate the company's launched a "Thanks a Billion" giveaway. Renting a disc during the promotion (or sending a letter through the mail, no e-) nets a free rental, while the real prizes start with "Golden Ticket" rentals -- 50 codes placed on DVDs across America that are worth a $500 gift card -- plus a grand prize of a Sony 52-inch HDTV, surround sound system, Blu-ray player and some movies...or a trip to the People's Choice Awards. We know that's not really a choice for you, so all that's left is to check out the details and map of areas where Golden Ticket are located on the official website.
Is your local Redbox hiding a touch of Blu?
If you're like some of us, and Redbox's Blu-ray availability search came up empty even after the company announced it's expanding high definition rentals to all locations, it may be time to look again. At several locations in Michigan, and also experienced by our friends at HighDefDiscNews, even though the official search page still says there's no BluBoxes to be found, checking the Blu-ray category of local Redbox kiosks online (as seen above) reveals they've already added a few movies as recently as this week. It's like the state motto says "If you seek $1.50 Blu-ray rentals, look about you," or something like that.
Redbox rolling out $1.50 Blu-ray rentals at 13,000-plus kiosks, nationwide by fall
It's really no surprise that Redbox is going nationwide with its $1.50 Blu-ray rentals, at every step along the way of its Hollywood dealmaking, the company has pointed out its aim towards procuring a supply of high definition movies, and now the day is finally here. The high definition disc packing kiosks currently number 13,300, and the plan is to have Blu-ray in all 26,000 locations by the fall. While we spotted plenty of Blu-ray enabled locations with a San Francisco zip code, other areas in the Midwest and East Coast weren't so lucky. The site points out a few of the movies on offer, including Green Zone, Book of Eli and Bounty Hunter, but there's no way to check which movies are in stock at each box. Of course, at this price, we might be willing to take our chances until Redbox gets things straightened out, or starts offering an online competitor to Netflix.
Redbox updates site for Blu-ray search, most kiosks still not updated for Blu-ray find
The good news is now there's a dedicated page on the Redbox website for finding kiosks stocked with $1.50/night rental Blu-ray discs, but the bad news is... we can't find one anywhere near our zip code. Apparently if we did live on such hallowed ground, it would even point out recent Blu-ray movies added to the kiosks making the decision to watch Matt Damon in The Green Zone tonight as easy as possible. Hit the source link to begin your own search for high definition movies, hopefully it turns out better than ours so far.
Paramount, Redbox keep DVDs and Blu-ray discs in kiosks the same day they go on sale
It looks like not all of the remaining Hollywood studios are putting the 30-day brakes on providing movies to Redbox, as Paramount has concluded after a ten month study that it has "minimal" effect on DVD sales. Dennis Maguire, President of Paramount Home Entertainment says the company is "allowing the consumer a choice of how to consume our movies while maximizing the profitability of our releases in the home entertainment window" while Redbox prez Mitch Lowe looked forward to joint marketing programs. That puts another studio on deck to provide the Blu-ray rentals we're expecting to see later this year and is a pretty sharp contrast to recent deals with Fox and Warner delaying low cost rentals to protect their day one sales and premium rentals on video on-demand.
Redbox CEO suggests $1.50 rate for Blu-ray rentals
Along with the repeated indications Redbox would expand its Blu-ray rentals this year, there's been hints that it would have to raise prices beyond its standard $1 / night DVD rate. Home Media Magazine reports President Mitch Lowe mentioned during his keynote address at the Entertainment Supply Chain Academy Edge conference that the likely price is $1.50, which seems low enough to keep customers happy and -- judging by the recent slew of deals -- will apparently keep Hollywood studios happy also. to that end, his speech also cited NPD data indicating customers said they wouldn't rent or purchase many of the movies they obtain at the kiosks any other way, while 41% of customers rent before making a decision to buy. Also on deck for Redbox are sales of catalog titles for $5 / $7 / $9 -- so let us know, would you appreciate the option to buy, not just rent, from your nearest vending machine?
Redbox expands game rental program to Orlando
As a staff with a statistically high number of social phobias, we're big fans of automated rental kiosk company Redbox. Renting movies at 2 a.m. from outside the local Kroger is not only convenient, it's also strangely illicit, like the robotic equivalent of perusing the stolen watches in a street vendor's furtively opened trench coat. Replace "stolen watches" with "copies of Valentine's Day" and the metaphor totally works, we promise. Sadly, if you'd like a similar way to anonymously rent games, you're out of luck ... unless you live in Reno, Nev., Wilmington, N.C. or -- now -- Orlando, Fla., where Redbox's video game rental program is being currently being tested. If you've got a spare $2 per night, why not hike to your local Winn-Dixie, 7-Eleven or Walgreen's and let us know what it's like living in the future? [Via Yo! Jmo's Blog]
Redbox deal with Fox puts a 4 week hold on new releases, starting with Avatar
Consider that Redbox / Fox lawsuit cancelled -- as well any plans you had to watch Avatar this weekend for a buck a day. Under their new distribution agreement (starting with this week's blockbuster flick) the movie maker will directly supply Redbox but only 28 days after a movie is released and with the directive they will not be resold later. No real surprises here considering the recent slew of similar agreements affecting our favorite budget rental options, including the note that this applies to Blu-ray discs as well, with no word when they will be available outside of "testing in select markets." It's cool, we were just waiting to watch The Blind Side this weekend anyway.
Poll: Will 30-day rental windows pull you away from Netflix & Redbox?
Blockbuster and the cable VOD consortium have been busy trumpeting the fact they're getting many of the new releases in HD as soon as they hit shelves for sale... while Netflix and Redbox aren't. But will that matter to customers lulled into an all-you-can-eat & $1 per night stupor by the latest gladiators to dominate the rental arena? Let us know how it looks to you. %Poll-44735% [Image via eHomeUpgrade]
Would you want to stream movies from Redbox?
Surveying your users can be a great way to figure out what other types of services they might be interested in, but it can also tip your hand to future plans. Redbox recently surveyed its users asking 'em what they'd think about paying $3.95 a month for a subscription to an unlimited streaming movie service. The cool twist here is that it includes four free kiosk rentals for that price -- the movies shown in the survey were of the older variety. No surprise that Redbox would want to get in on this game and at the price we'd expect, with the correct hardware partners, it could be a valuable service -- assuming its in HD of course. [Thanks, Paul!]
Warner / Blockbuster deal keeps movies out of kiosks for a month
Just in case Warner's ideal demarcation between release windows wasn't clear enough, it's struck a new deal with Blockbuster splitting rental dates for movies. Just like Redbox and Netflix, Warner movies are now on a 28-day delay before they appear in rental kiosks, but are available for rent at store locations or by mail on the same day they go on sale. Blockbuster CEO James Keyes calls the four-week lead an agreement that "reinforces Blockbuster's position as the most convenient source for new movies" but we're figuring with steady competition from VOD services (including its own Blockbuster On Demand, which will maintain day-and-date releases,) it will still have a tough time clawing back ground lost to the competition. First flicks under the new deal? The Blind Side and Sherlock Holmes.
Redbox to offer Blu-ray rentals later this year
If the convenience of streaming content via Netflix and/or having magical pixies deliver discs to your mailbox (that's how they get there, right?) aren't your thing, then know your insatiable desire to view high-def movies will soon be satiated via Redbox. The aptly-titled crimson structure that spits out discs inside your local supermarket or at your favorite strip mall has begun an initiative to see Blu-ray rentals offered starting sometime around mid-2010, Blu-ray.com reports. Of course, all of those extra defs won't come cheap: CEO of Coinstar -- Redbox's parent company -- Richard Davis exclaimed that a pricing structure for Blu-ray rentals hasn't been finalized yet, though it will likely be "higher than our standard DVDs." So ... two dollars, then?
Redbox planning to expand Blu-ray availability around the middle of this year
According to statements by Coinstar CEO Paul Davis, we should expect to see Blu-ray discs appearing in more Redbox kiosks around the middle of this year. Specifically called out in its deal with Warner, Home Media Magazine reports he also mentioned the final price for HD rentals is undecided but would "for sure be higher than our standard DVDs." We're thinking $2 a night, any other guesses?
Blockbuster, Redbox adding rental kiosks at ridiculous speed
The DVD rental kiosk war continues to heat up, with NCR acquiring competitor DVDPlay to add around 1,300 kiosks under its Blockbuster Express umbrella, while Coinstar joyfully announced its surpassed expectations with the rollout of Redbox, now numbering 22,210 installations. For the last six months its maintained a pace of more than one kiosk every hour, 24/7. Is there anywhere you'd like to see one of these automated dispensaries that doesn't have one yet? Odds are there will be three new ones by the time you finish reading this post.
