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Monday, August 31, 2009

I love RedBox, Hollywood doesn't.



Shields up. Torpedoes at the ready. Hollywood is once again attacking what could be the hand that feeds them and as usual it's a product that involves advanced technology. This is the same industry that once defamed the advent of the DVD player, saying that it would irreparably harm the movie industry but instead it, in many ways, helped save it. But like a brain-damaged, crazy 500lb. gorilla, Hollywood seeks to bludgeon RedBox to death.

For those that don't know, RedBox is a refrigerator-sized electronic kiosk that dispenses movies (new releases, too) at $1.00 per movie. Just sign up with a valid email and insert your credit card and within seconds you can select your DVD and be on your way. As soon as you rent it, it send a confirmation email to you and will continue to be in contact with you – reminding you of your return/late status if you forget to bring it back within 24 hours. Technology. Isn't it wonderful?

No waiting in line. No one calling you if you're late. And it's a third of the cost of most new releases. But therein lies the problem. If you're only paying a dollar, Hollywood's cut isn't as much as if your rented from, say Blockbuster, where new releases are $3 to $5 and where Hollywood makes more money.

RedBox didn't start getting attention until it started catching on. Owned by Coinstar (you know - those green kiosks that take your loose change and give you folding money) these RedBox machines have now grown to 18,000 strong and their growth is getting faster.

Because of its growing popularity, Hollywood seeks to slow its growth by withholding its new releases from RedBox alone by 30 days and restricting the number of DVD for a single release to about half the current quantity it holds. If Hollywood gets its way, that means that new release you want won't be so new when it's finally available, and there's a good chance it will be ALL rented out.

Because of this, RedBox has countered with a lawsuit claiming its innovation which is a benefit for consumers, is being targeted unfairly. I wholeheartedly agree.

Silly, Hollywood. You can't stop technology!

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