#LAND OF MINE REDBOX MOVIE#

#LAND OF MINE REDBOX MOVIE#

After years of weighing a move into the business and persistent rumors that it might acquire Netflix, the Seattle companyвЂ™s board of directors determined at a recent meeting that it would develop its own online movie and television subscription service, people briefed on the matter said. In an interview with Bloomberg, Paul Davis, chief executive of RedboxвЂ™s parent company, Coinstar Inc., said the companyвЂ™s digital strategy will probably involve a partnership and would be detailed in its quarterly conference call with investors next month.ДЄ is said to be closer to launching its online subscription service, however. Redbox is still mulling over exactly how the digital plan would work, the people said, and isnвЂ™t expected to launch its service imminently. The plan would make Redbox competitive with NetflixвЂ™s plans that mix DVDs shipped by mail and online streaming and allow it to significantly expand its selection beyond the approximately 200 titles available in each kiosk. For a monthly fee, consumers would be able to stream movies over the Internet and also rent a certain number of discs from kiosks. Several people familiar with the situation said Redbox executives have told studios they are looking at launching an online subscription service that is integrated with its kiosks.

The need to quickly adapt to technology has been evident this year in the rapidly deteriorating state of video rental giant Blockbuster, which has told the studios it expects to file for bankruptcy later this month. Revenue from its DVD business was up 44% in the most recent quarter to $271.9 million.Д«ut Redbox President Mitch Lowe has said in interviews that the company needs to develop a digital distribution strategy to succeed in the long run as consumers increasingly use computers and Internet-connected televisions to access movies. The company had nearly 27,000 of its $1-per-night DVD kiosks in grocery stores and other retail locations as of June 30, up from 17,900 a year earlier. Redbox has, along with Netflix, been one of the most disruptive forces to the home video business in the last few years. вЂњBut Netflix had an advantage when it started spending hundreds of millions on Internet rights because it already had a massive base of DVD subscribers.вЂќ вЂњThe recurring revenue stream from subscriptions is very attractive for anybody who wants to create a digital business,вЂќ said Michael Olson, an analyst at Piper Jaffray. As attractive as the business is becoming, however, it presents significant barriers to entry, most notably laying out hundreds of millions of dollars to studios for the rights to their content.

Land of mine redbox