toggle

AAPL Stock: 113.29 ( + 0.37 )

Printed from http://www.macnn.com

Paramount resists pressure, gives Redbox same-day movies

updated 05:50 pm EDT, Tue June 15, 2010

Paramount won't follow studios on Redbox delays

Paramount bucked the trend to major resistance towards non-traditional movie rentals by striking a same-day deal with Redbox. Under the terms, both Blu-ray and DVD movies will be available through the on-the-spot kiosks the same day as they're available to rent elsewhere. The movie studio rejected the fears that have led Warner Bros. and other studios to try and force 28-day delays, arguing that there's ultimately no impact to giving RedBox $1 rentals at the same time.

"After analyzing the data from our test period we have concluded that Redbox day-and-date rental activity has had minimal impact on our DVD sales," Paramount Home Entertainment worldwide president Dennis Maguire said. "By granting redbox day-and-date availability we are allowing the consumer a choice of how to consume our movies while maximizing the profitability of our releases in the home entertainment window."

Rivals to Paramount are believed to primarily be protecting stores like Blockbuster that often charge $4 or more for renting a new-release movies. Such strategies haven't necessarily been effective, as Blockbuster is increasingly rumored to be short on cash and needing loans to keep operating through 2011. Internet downloads and Netflix have largely gutted the traditional business as they offer more movies for the money.

Redbox itself has already planned an exit strategy and may offer cheap Internet streaming in the future.




by MacNN Staff

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented