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How Those Redbox Kiosks at Your Favorite Supermarket Get Around Studios That Insist on a Long Delay for DVD Rentals

Feb 15, 2012  •  Post A Comment

So how do those Redbox DVD rental kiosks get movies way before a studio authorizes them for the rental market?

"The kiosk company … buys Warner Bros. discs on the open market instead of accepting the studio’s insistence that it wait 56 days for new releases," explains our friend David Lieberman at Deadline.com.

And Redbox says it would do the same thing if Universal or Fox goes to a longer delay for DVD rentals.

Says the article: "Paul Davis, CEO of Redbox parent Coinstar, says he’s ‘comfortable that we could deal with’ a similar situation if Universal or Fox also try to change their current arrangement to hold new releases for 28 days before selling discs directly to Redbox. The kiosk company says it offsets the higher price it pays retailers for Warner Bros’ new DVD and Blu-ray releases by carrying fewer of the studio’s titles. ‘We’re not buying every single movie from Warner Bros,’ he told analysts at the Pacific Crest Emerging Technology Summit. ‘We’re pretty selective.’ The company expects to ‘learn a lot more as we go through the quarter’ about how many discs to buy to satisfy consumers and still make a profit. Although Redbox is prepared to do the same thing with Universal and Fox, Davis says ‘I don’t believe that’s where we’ll end up.’ "

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