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Redbox Being Challenged By The Movie Studios

December 16th, 2009

Redbox is suing 21st Century Fox and Universal Studios for telling Redbox to wait a few weeks after their movies go on sell before renting them. In the past the studios had attempted to prevent movie rental stores from even starting. This attack against Red Box seems like another attempt by the movie studios to prevent a movie rental business model from developing.

The Redbox movie rental boxes in Walmart actually help the movie studios considering Redbox users rent about 20% more movies then other more traditional movie rental stores. Redbox has sold more then 77 million dollars in DVD’s through their boxes from users who have decided to keep the DVD rather then return it. All in all a case can be made that Redbox is really helping the movie studios rather then hurting them.

Since Redbox is a new business model the movie studios are just unsure about how it will effect their bottom line. The fact is Redbox is increasing volume, providing savings back to the consumer and offering a more convenient way to rent movies. Over the next few years Redbox will be helping the movie studios rather than hurting them as they offer a more effecient way to purchase and rent movies.

The movie studios like any major cash cow business becomes stuck in the familiar old school ways of doing business and are uncomfortable venturing out and trying something new to increase sales. They see Redbox making all this movie money and they feel that Redbox is shaving profit margin from new DVD sales. The fact of the matter is that Redbox stepped up and provided a more affordable and convenient way to shop and rent DVD’s by paying a dollar a day from convenient Walmart red boxes.

I have bought atleast one Redbox DVD simply because I never returned it. I have rented more movies that I would have never rented before because of the convenience of Redbox and I enjoy the limited but good selection of top dvd rentals. I end up spending an hour or two in a DVD movie rental store but only about 5 minutes searching for a movie rental using Redbox.

The movie studios need to leave those little Redbox movie rental boxes in the Tyler Texas Walmarts alone. We Tylerites like our Redbox, they’re good for me.

Blockbuster Breakdown

December 14th, 2009

                   It was just a few years ago, when you waked into a Blockbuster movie rental store, it would be crowded with people looking for that perfect Friday night movie. Now, in the world of Red Box and NetFlix and Wal-Mart’s $5 DVDs, you might find a couple people looking for a good sale on used new release DVDs.

                  I am one of the many people who has abandoned my Blockbuster days, and founded a cheaper easier way to get the movie you want. The RedBox, Blockbuster’s most recent nemesis. What is more convent than to do your grocery shopping and quickly pick up a movie to watch? I know the trick of Red Box, that it’s a dollar a night, adding up to could cost you a lot of money. But honestly who doesn’t go to Wal-Mart about every other day, or if you are as forgetful as I am, everyday?

                  In the hope of survival, a couple years ago Blockbuster announced they are dropping their “late fees”, or more bluntly wording it, candy coating their late fees. It is no longer called “late fees” but now “restocking fees” if you keep the movie to long you will have to pay for the cost of the movie, or if you return it much later you will have to pay a “restocking fee” to pay for it being put back on the shelf. Seriously? Call it what it is. You are paying because you returned the movie rental to late, therefore it’s a late fee. But even with the loud colorful banners, Blockbusters are still running out of business. Stores are closing in Tyler. They are trying to keep up with the growing electronic world, replacing the DVD collection with Blue Ray movies. Also to keep up with the NetFlix population, Blockbuster started a monthly deal that you can either get movies in the mail, by ordering off the website, or to go to the store and return or pick up a movie. I don’t really know hy this hasn’t caught on as fast as NetFlix. I would not be surprised if in a couple years, Blockbuster becomes an internet company.

                 I will admit that I have gone to Blockbuster somewhat recently. They were selling fairly new movies for $2-$6, so keep your eyes opened as you drive by the blue and yellow stores, you might find a good deal.

                I know I am one of the many people that has not thought about renting a movie from Blockbuster but still has a movie in the blue and white box sitting on the self from years ago. So to let the whole of East Texas know, there is still Blockbusters in Tyler and you might find a good deal during their fight to survive.