Disney Dvds Lot - DVD

Redbox CEO: We have a negligible effe...

24.08.09

For the last few weeks, the hottest statement in Hollywood has involved a gathering in suburban Chicago.

Redbox, a joyride off of McDonalds that's now owned by Coinstar Inc., is reshaping bailiwick entertainment, the must lucrative hawk for the movie industry, with its kiosks in grocery and convenience stores that gash movies for $1 per non-stop. In a year when, so far, DVD sales are down 13.5% but rental profits is up more than 8%, thanks in stout part to Redbox. Sony Pictures and Lionsgate Performance have both concluded that it's a key element in the future of the business and signed five-year guaranteed apportionment deals worth hundreds of millions of dollars.

Others see it as a intimation that undermines the value of their products. Unlimited Pictures late last year ordered its distributors not to rep Redbox its DVDs until 45 days after they went on vending in stores and is in now in the midst of a constitutional battle with the company. Fox last week ordered its distributors to stick around 30 days and was sued by Redbox this morning.

Source: Los Angeles Times

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