Random Factoid #476

16 11 2010

Well, there goes Redbox as being a great deal for consumers.

Studios have been running one step behind in terms of catching up with consumer’s taste in moviewatching.  By the time they get there to jack up the prices, the boat has sailed away to the next big thing.  Looks like Redbox is just another has-been now.

According to Company Town, Fox will begin charging a premium on DVD releases through Redbox beginning with the release of “Knight & Day” in December (darn you, Tom Cruise).  This is supposedly the alternative to delaying their release by 4 weeks, the past strategy to maximize profits on DVD sales.

Here’s my theory on what will happen: people might not notice at first, since it’s just a few movies.  Then, every studio will start doing it for their new movies, and people will turn away.  Eventually, they will charge a premium on every movie with an actor you’ve heard of, leaving the $1 rentals for cheap knock-offs alone.  Some will argue that iTunes has remained successful in spite of their price increase, but let me remind you that Apple has a virtual monopoly over the e-music industry.  There are alternatives to Redbox.

The big question is: what will rise in the post-Redbox era?  Will this just ensure Netflix’s continued success?


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