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Summary:

What does a company that’s built a thriving business off renting DVDs do in a post-DVD, streaming online video world? At this stage, according to Gary Cohen, the SVP of Marketing and Customer Experience at Redbox, a company that rents DVDs through kiosks at convenient locations, […]

What does a company that’s built a thriving business off renting DVDs do in a post-DVD, streaming online video world? At this stage, according to Gary Cohen, the SVP of Marketing and Customer Experience at Redbox, a company that rents DVDs through kiosks at convenient locations, you do a whole lotta testing. Cohen told NewTeeVee co-editor Chris Albrecht at the NewTeeVee Live conference tonight that his company is doing a brand-new digital video test with partners.

While Cohen wouldn’t expand on the test of the partners, he said that the company is doing a variety of tests with technology in addition to digital, like Blu-ray, as well as different types of pricing testing. “We’re trying to find out how to leverage this big digital footprint we have,” said Cohen. “We have a lot of data and a lot of customers and we’re listening to our customers.”

It’s the same problem that Netflix (whose CEO spoke earlier today) faces. And Cohen said the same thing that Netflix CEO Reed Hastings did: The DVD is still growing. Redbox, which now has 20,600 kiosks installed nationwide at locations like McDonalds, Wal-Mart and the top 25 supermarkets, said that so far, its customers “are very comfortable with the DVD.” The service Redbox provides is a “convenient, simple and valuable” one, he said. Redbox rents DVDs for a dollar a night, customers can both rent and return DVDs at any of its kiosks.

The business model is so simple, it’s almost shocking that it’s reached such a large scale. In Salt Lake City the company has one kiosk per 3,000 residents and Redbox is installing another kiosk every hour. In terms of content, Cohen, said the company just passed a half a billion movies; it’s done deals with Sony, Lions Gate, Paramount and Disney. But not every content provider wants to be friends with Redbox — the company has been mired in lawsuits.

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  1. TV Everywhere: Livestream of NewTeeVee Live Thursday, November 12, 2009

    [...] What’s Next for Redbox in a Post-DVD World [...]

  2. Very interesting, and glad I was able to learn more about this fast growing business.

    There is no question that Red Box’s business model is resonating with mass audiences, and they have absolutely killed it from a PoP point of view. I wonder though how a huge physical footprint will have any bearing or advantage on a digital landscape, since the whole point of using the internet to deliver content is to remove the need for physical presence. I would love to hear what others think about what advantage they will have once DVDs do finally go off into the sunset.

  3. Redbox Marketing Chief: We Knew We’d be a Disruptor | Inside Redbox Monday, November 16, 2009

    [...] Live ‘09 conference. During the course of the interview, which can be found in its entirety here, Cohen made some interesting comments about Redbox’s impact on the home entertainment market, [...]

  4. This is halarious this is nothing more then an attempt to stop CSTR’s stock from the massive slide it’s in.

  5. Redbox Says Studios Interfering with DVD Retail Purchases Wednesday, December 2, 2009

    [...] out my talk with Gary Cohen, the SVP of Marketing and Customer Experience at Redbox from NewTeeVee Live (embedded above) where [...]

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