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  • 07.20.09

Movie Studios See Redbox as Short-Term ATM

The red-hot DVD kiosk company Redbox gets a big win in its battle with the movie studios: Three majors are playing ball in a desperate grab for an immediate revenue hit.

redbox at mcdonalds

The move by the three studios indicates that in this challenging economic climate (even for generally recession-resistant entertainment companies) indicates that studios are looking for revenue from wherever they can get it. DVD sales are down–almost 14% so far in 2009–and Redbox, with its $1 per night DVD rental kiosks is now in more than 17,000 locations nationwide. So the thinking for Sony and the others appears to be that it might as well sell DVDs to Redbox rather than, say, no one.

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Studios have a right to be worried about the new red-hot DVD rental outlets, but as with iTunes, Kindle and other disruptive innovations, at least people are still paying to consume your content, even if they aren’t paying you directly.

Via The Wall Street Journal

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