3 Comments

Summary:

The Hollywood/Redbox saga continues, though Paramount has added an interesting twist. The Viacom-owned movie studio is testing out a new ren…

Redbox kiosk
photo: Eddie Does Japan

The Hollywood/Redbox saga continues, though Paramount has added an interesting twist. The Viacom-owned movie studio is testing out a new rental revenue-sharing deal with Redbox, which is different than the wholesale deals the DVD kiosk company currently has with Sony (NYSE: SNE) Pictures and Lionsgate. The LAT reports that Paramount will get an undisclosed percentage of $1-per-night fees Redbox gets for any Paramount films it rents.

The four-month arrangement is also unique because if it proves to be lucrative, Paramount will sign a five-year extended deal with Redbox that will ultimately net the studio a payout of $575 million. That’s about 25 percent more than the $460 million Sony will get per the terms of its own Redbox deal. Paramount Vice Chairman Rob Moore tells the LAT that the trial will give the studio enough data to “make an informed decision” about whether Redbox’s cheap rentals are really having a negative impact on its DVD sales.

The wait-and-see approach makes Paramount one of the only neutral parties in the middle of this year’s movie rental wars. Studios like Warner Bros., Fox and Universal have tried to enforce month-long release windows as part of their Redbox deals, in an attempt to prevent their DVD sales from being cannibalized; Redbox has responded to the sanctions with anti-trust lawsuits.

Sony and Lionsgate have thrown their chips in with Redbox for the most part, concluding perhaps, that making some money from the increasingly popular discount rental service is better than making none (or being sued). That may eventually be a conclusion that all the studio heads will have to face, as, according to new stats from NPD, around 30 percent of all DVD rentals in the U.S. will be from kiosks next year; in the first half of this year alone, Redbox’s share of all video rentals nationwide has been about 19 percent.

Paramount’s Moore said that the studio hasn’t reached any “definitive conclusions” about how it will move forward after the trial, if the data shows that the kiosk-rentals are cutting into overall revenue. (As Ben Fritz notes, Redbox will likely hit the studio with a lawsuit if it does try to impose release windows like Warner Bros., Fox and Universal).

You’re subscribed! If you like, you can update your settings

  1. Its exciting to that Red Box is doing so well. Redbox has changed our way of renting movies, not to mention the moeny the company has saved us. Although I wish they would make it easier on us to find the movies that we are looking for. Many of there stations dont have the movies that are newly released.

    Hollywood's Latest Red Scare: Redbox http://www.trigeia.com/article.php?id=101895

    Share
  2. Mail DVD rentals Friday, September 25, 2009

    Really nice article.In that DVD sales for the movies what about the gain percentage for the owners..

    <a href="http://zerodollartrials.com/general/blessing-for-a-movie-buff-–-mail-dvd-rentals/">Mail DVD rentals</a>

    Share
  3. delbertmcnewjr Sunday, January 17, 2010

    My name is Delbert Dwight Mcnew Jr I wan’t To no when is The The Incredible Hulk: Season 1 (1978) on dvd Come to of Netflix and also When is Dallas: Season 6 But all it said save on Netflix I no of Dallas season 6 come was 2007 come on dvd but Netflix Don’t When they no the Date of Dallas Season 6 and also I can only Watch The Incredible Hulk Season 1 Streaming and also Please Tell me when can you get Moore Copy of Dallas Season 6 and + The Incredible Hulk Season 1 on dvd and Please tell me How soon You Get The Two DVDS for Me They are my to watch all the Time but Please try to Getting The Dallas Season 6 and The Incredible Hulk Season 1 Also The Netflix Can I Can Getting to Rent of Dallas Season 6 and The Incredible Hulk Season 1 on dvd and but they total me put in my Save to if they can getting for but you have to try to getting this dvds for me also you can getting the Incredible Hulk Season 1 on dvd and also Dallas Season 6 on dvd and How Soon also I Can Rent to watch on My Tv Please try To Get both dvd For My Birthday is August14 is on Sat Please try oaky Netflix because I miss The Incredible Hulk On Tv and Also Dallas Season 6 Please Tell me How Soon You Get Them On DVD Also You Can Put On Netflix because we like The Netflix but it has only 4 disc of The Incredible Hulk Season 1 and But Dallas Season Has only 5 Disc Please Try Hard To My Two Show I Like oaky Netflix

    Share

Comments have been disabled for this post