Monday, September 7, 2009

Redbox Jabs Big Guys

RG's Neighborhood Kiosk

Link to September 6 New York Times article, "Movie Studios See Threat in Growth of Redbox".

And what an amazing growth it is. From 12 kiosks in 2004 to a projected 22,000 in December 2009.

Here's an instructive snapshot of the movie rental marketplace:
45% traditional stores
36% rent-by-mail serrvices, such as Netflix
19% vending machines, led by Redbox

Taking a page out of the Washington playbook, Hollywood goes "family farm" on us. Studios, aware that consumers are unlikely to pity their plight and muzzled by the lawsuits, are keeping quiet. Fox, Universal, Warner and Disney each declined to comment for this article. But Hollywood’s powerful public relations machinery is in motion behind the scenes to connect the news media with a group that is equally threatened by Redbox but much more relatable: mom and pop rental store owners.

A little late, I'd venture. Blockbuster, Hollywood Video, and Family Video have already trampled on the majority of these guys.

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