Home Media Magazine - November 30 - December 6, 2008 - (Page 30) NEWS Continued from page 1 www.homemediamagazine.com Redbox Reinvigorating Rental Consumers Looking for Deeper Deals Lancina: According to the Entertainment Merchants Association 2008 Annual Report, quoting Adams Media Research, kiosk market share in 2007 was 2%, and this figure continues to grow. Recent internal estimates suggest current Redbox market share is between 5% and 10%. I also can tell you that Redbox has served more than 29 million unique customers to date and thousands I HM: How has Redbox managed to thrive more try the service each day. where Blu-ray rentals are available and notes that Blu-rays can’t be reserved online. Gary Lancina, VP of marketing for the company, chatted with Home Media Magazine about Blu-ray, the health of kiosk operators in the current environment and the relationship his company has with the studios. in the DVD market? Continued from page 1 Federation said current business conditions were bad, compared to 37.1% who felt that way in October. However, the Consumer Confidence Survey, based on a sample of 5,000 U.S. households through Nov. 18, found that 11.4% of respondents expected economic conditions to improve over the next six months, compared to 9.6% in October. “Retailers realize that low prices will get consumers into stores this holiday season,” said Tracy Mullin, president and CEO of the National Retail Federation. “Shoppers who held off buying a DVD player or winter coat over the past few months will find that prices may literally be too good to pass up.” More than 56% of HDTV households said they considered buying a Blu-ray movie for $25 a better value than going out to dinner, the movies or a concert, according to a report by Greenfield Online. Standalone Blu-ray players rated the second-most-popular item on HDTV owners’ holiday wish lists (8.1%), and No. 1 among men 40 and under (13.4%) and men from 26 to 54 years old (14.2%). Lancina: Redbox’s combination of features, including a $1-per-night price, focus on new-release titles, rent-andreturn-anywhere policy and online reservations, offers a terrific value to consumers. Our national network of convenient locations, including select McDonald’s restaurants, leading grocery and convenience stores and Walgreens and Wal-Mart stores, saves busy consumers from making an extra stop in their day. In addition, Redbox has more than five years of planning, consumer testing, refinement and operations expertise, and executes extraordinarily well — designing and deploying a user-friendly kiosk and related software, distributing millions of new-release DVDs to these kiosks each week, and maintaining the kiosks so that they are always up and running to ensure a seamless customer experience. Redbox’s convenience and value have reinvigorated the DVD rental category. According to a survey of active Redbox customers conducted in November 2008 by The NPD Group, nearly 20% of Redbox volume comes from renters who have increased their rental activity since the introduction of Redbox or from those who, prior to Redbox, had moved away from DVD viewing altogether. Whether disenfranchised by the price or hassle of other movie rental services, many customers have re-entered the DVD rental market as a result of Redbox’s unique value proposition. I HM: What’s the long-term outlook for the kiosk business? I HM: How is Redbox weathering the current economic climate? Lancina: With rising movie theater prices and the state of the economy, Redbox’s convenience and price have made the service increasingly appealing to customers. A recent report from Nielsen found 56% of consumers say they are cutting back on out-of-home entertainment to save money, and Redbox is the perfect home entertainment solution for families on a budget. In fact, Redbox recently broke a company record, renting more than 1 million DVDs on one day. I HM: Can you talk about your company’s relationship with the studios? Greenfield found that for the ubiquitous holiday gift card, 7.1% of HDTV households would use a $150 card toward the purchase of a Blu-ray player. Aggressive marketing and pricing on DVD and Blu-ray players and discs has many consumers eyeing packaged media as gifts. An informal survey conducted by Home Media Magazine in Southern California found continued interest in packaged media. Norman Balacuit, a podiatrist from West Covina, said he bought an HDTV seven months ago and subscribes to Netflix to satiate his demand for movies. “I use the PlayStation 3 system to watch movies on Blu-ray, but I might buy a BD player if the price goes down,” Balacuit said. Walnut resident Mike Alvarez, who also owns an HDTV, said he’d opt for DVDs instead of Blu-rays this holiday season. Dan Narkorn from Brea said he recently bought Iron Man on Blu-ray (his first BD title) and was pleased with the upgrade. “You can tell the difference,” Narkorn said. A group of Los Angeles area college students queried had all heard of Blu-ray. Most planned, however, not to buy the high-definition packaged media any time soon, opting instead to focus on DVD. “PS3 does the job, and it’s cheaper than a [standalone] Blu-ray player,” said 21year-old Spencer from Pomona. With gasoline prices at their lowest since 2005, consumer confidence surged slightly heading into Nov. 28 and Cyber Monday — the day retailers entice shoppers online with deals, said the National Retail Federation. Nearly 84% of retailers will have a Cyber Monday promotion, compared to 72% last year. About 25% of merchants will offer free shipping during the holidays. “Since the economy is sluggish, consumers will be looking for deals more than ever because they have less disposable income,” said Luke Knowles, who operates a Web site (freeshipping.org) that lists online retailers offering free shipping. The National Retail Federation said its expects 128 million people (down from 135 million last year) will likely shop Nov. 28 through 30, with 49 million actually hitting stores. Consumer interviews conducted by Laleh Ghalambor. Lancina: Unfortunately I cannot disclose details on Redbox’s studio agreements, but I can tell you that Redbox has excellent relationships with our studio partners and we will continue to carry all major new releases. I HM: What does the rental kiosk market look like for Blu-ray? JUST ANNOUNCED A Weekly Product Update* Lancina: Redbox is testing Blu-ray Discs in a limited number of markets nationwide. We will continue to evaluate consumer response to this offering to make decisions regarding expanding our Blu-ray offering to best meet the needs of our customers. I HM: Do downloads present a challenge to the kiosk business? Why or why not? TITLE Eagle Eye STREET DATE Saw V BOX OFFICE (MILLIONS) Fireproof PREBOOK GENRE PRICE Lancina: I cannot speculate for Redbox or our competitors. I can tell you that Redbox has continued to experience rapid growth of our retail footprint and customer base. From an initial launch of 12 kiosks in 2002, Redbox features more than 10,000 locations nationwide and is available in each of the contiguous United States. In January 2008, Redbox surpassed 100 million DVD rentals. Now just 10 months later, Redbox has rented more than 250 million DVDs nationwide. I HM: What market share do the kiosks claim in the overall DVD business? Lancina: While we believe Redbox is well-positioned to offer consumers streaming/download technology if and when customer preference moves in that direction, the majority of consumers (54%) prefer physical media, according to Nielsen. Given this consumer preference, and the lack of price differential or increased convenience with digital media, there’s very little incentive for consumers to switch from DVDs. Downloading a DVD-quality movie (not even an HD-quality movie) takes hours over DSL or cable Internet. This download time significantly decreases the convenience of watching movies when you want. Moreover, studios frequently delay the electronic availability of movies to maximize their physical sellthrough, further sustaining the viability of DVDs. At this time we do not feel streaming or download technology present a significant challenge to the kiosk business. Eagle Eye 12/28 Now $99.8 Thriller DVD $19.99, BD $29.99 Paramount. 2008. Shia LaBeouf, Michelle Monaghan, Billy Bob Thornton, Rosario Dawson, Michael Chiklis. Two people race against time to find out who is manipulating them, via various communication technologies, into committing a series of crimes. Also available as a two-DVD special edition ($39.99). Saw V 1/20/09 12/30 $56.4 Horror DVD $29.95, BD $39.99 Lionsgate. 2008. Tobin Bell, Julie Benz, Costas Mandylor. In this fifth installment of the horror franchise, The secret apprentice of Jigsaw is on a mission to continue his horrific legacy. Fireproof 1/27/09 12/25 $31.5 Drama DVD $28.95 Sony Pictures. 2008. Kirk Cameron. A fire captain works to save his struggling marriage by turning to the Christian faith. Includes behind-thescenes footage, deleted scenes, commentary and more. W. 2/10/09 1/14/09 $25.4 Drama DVD $29.95, BD $39.99 Lionsgate. 2008. Josh Brolin, Elizabeth Banks, Ellen Burstyn, James Cromwell, Richard Dreyfuss. Director Oliver Stone presents his take on the life story of George W. Bush, 43rd president of the United States. Igor 1/20/09 12/31 $19.1 Animated DVD $29.98, BD $39.99 PRICE CHANGE. Fox/MGM. 2008. Voices of John Cusack, John Cleese, Steve Buscemi, Molly Shannon, Eddie Izzard. In this family-friendly twist on a classic tale, a mad scientist’s assistant creates a female monster, a sweet girl whom he then must rescue from the evil Dr. Schadenfreude. Religulous 2/17/09 1/21/09 $12.8 Documentary DVD $29.95 Lionsgate. 2008. Comedian and TV host Bill Maher travels around the world interviewing people about God and religion. Includes deleted scenes and audio commentary with Maher and director Larry Charles. * In order of box office, then prebook date Home Media Magazine November 30–December 6, 2008 http://www.homemediamagazine.com http://www.freeshipping.org
Table of Contents Feed for the Digital Edition of Home Media Magazine - November 30 - December 6, 2008 Home Media Magazine - November 30 - December 6, 2008 Contents News Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - November 30 - December 6, 2008 Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page Cover1) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page Cover2) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page 1) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page 2) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page 3) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page 4) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page 5) Home Media Magazine - November 30 - December 6, 2008 - Home Media Magazine - November 30 - December 6, 2008 (Page 6) Home Media Magazine - November 30 - December 6, 2008 - Contents (Page 7) Home Media Magazine - November 30 - December 6, 2008 - News (Page 8) Home Media Magazine - November 30 - December 6, 2008 - News (Page 9) Home Media Magazine - November 30 - December 6, 2008 - News (Page 10) Home Media Magazine - November 30 - December 6, 2008 - News (Page 11) Home Media Magazine - November 30 - December 6, 2008 - News (Page 12) Home Media Magazine - November 30 - December 6, 2008 - News (Page 13) Home Media Magazine - November 30 - December 6, 2008 - News (Page 14) Home Media Magazine - November 30 - December 6, 2008 - News (Page 15) Home Media Magazine - November 30 - December 6, 2008 - Reviews (Page 16) Home Media Magazine - November 30 - December 6, 2008 - Reviews (Page 17) Home Media Magazine - November 30 - December 6, 2008 - Reviews (Page 18) Home Media Magazine - November 30 - December 6, 2008 - Reviews (Page 19) Home Media Magazine - November 30 - December 6, 2008 - Reviews (Page 20) Home Media Magazine - November 30 - December 6, 2008 - Reviews (Page 21) Home Media Magazine - November 30 - December 6, 2008 - Pipeline (Page 22) Home Media Magazine - November 30 - December 6, 2008 - Pipeline (Page 23) Home Media Magazine - November 30 - December 6, 2008 - Pipeline (Page 24) Home Media Magazine - November 30 - December 6, 2008 - Pipeline (Page 25) Home Media Magazine - November 30 - December 6, 2008 - Top 20 DVD Sellers (Page 26) Home Media Magazine - November 30 - December 6, 2008 - Top 20 DVD Sellers (Page 27) Home Media Magazine - November 30 - December 6, 2008 - Top 20 Rentals and Top 10 Charts (Page 28) Home Media Magazine - November 30 - December 6, 2008 - Top 20 Rentals and Top 10 Charts (Page 29) Home Media Magazine - November 30 - December 6, 2008 - Just Announced (Page 30) Home Media Magazine - November 30 - December 6, 2008 - Just Announced (Page 31) Home Media Magazine - November 30 - December 6, 2008 - Just Announced (Page 32) Home Media Magazine - November 30 - December 6, 2008 - Just Announced (Page Cover3) Home Media Magazine - November 30 - December 6, 2008 - Just Announced (Page Cover4)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.