Movie Industry

by Mike Masnick


Filed Under:
delays, dvds, rentals

Companies:
paramount, redbox, viacom



Paramount Says 28 Day Delay On Redbox Makes No Sense; Doesn't Cannibalize DVD Sales

from the good-for-them dept

While some of the Big 6 studios have been incredibly anti-Redbox, Viacom's Paramount has always been the most reasonable towards the DVD-rental kiosk provider. So it really comes as little surprise that Paramount has announced that, after testing delayed movie releases through Redbox it sees absolutely no reason to keep delaying such releases and instead will offer new release movies on Redbox at the same time the DVD goes on sale:
"There were two conclusions we came to," said Dennis Maguire, president of Paramount Home Entertainment. "There hasn't been a cannibalization of DVD sales from Redbox, and Redbox was allowing us to expand our business and ultimately make more money" than if the studio held back its DVDs to Redbox for a period of time.
Of course, this is exactly what many people said when studios like Warner Bros., Universal and Fox demanded the 28 day release, but it's nice to at least see Paramount actually looking at the data and realizing that Redbox isn't the evil destroyer of Hollywood that some of its competitors have made it out to be.

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  1. icon
    btrussell (profile), 16 Jun 2010 @ 10:26am

    Re: You want to know what would be hilarious?

    "The Wall Street Journal’s Mike Spector reports Blockbuster is seeking $150 million in debtor-in-possession financing from its senior bondholders in case the company files for bankruptcy, while also seeking an outside cash infusion that might keep it out of Chapter 11. Clearly, whatever financing deal it can get will determine whether the company slides into bankruptcy now, or can put it off until later."
    http://blogs.bnet.com/business-news/?p=2762

    Lets hope it is sooner than later.

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