Monday, October 5, 2009

Redbox Chief: 'We Are an Engine for Industry Growth' | The Wrap

By Mitch Lowe
Published: October 02, 2009 in The Wrap

The article and all its references speak for themselves. Increased rentals are good and do not impact on the decrease of sales of DVDs. All this is a stopgap anyway until downloading and streaming take place from computers and go directly onto whatever large TV screens consumers install in their homes. Even TV seems more and more like a stopgap when you can get all news (real news, in depth news) from your computer and all movies from online as well.

In recent weeks, there’s been chatter attempting to explain the decline in DVD sales, linking this trend to a multitude of factors: consumer preferences, changing physical media, the economy and shrinking retail footprints.

For the first half of the year, DVD sales were down 13.5 percent from the same time period last year, according to industry tracker Digital Entertainment Group.

Meanwhile, rentals have risen 8.3 percent.

Some have even promoted the idea that popular movie rental services like Redbox cannibalize the market for DVD sales. Others suggest that big studios are clinging to unsustainable business models. (For background, see Flurry of Lawsuits Puts Redbox in Spotlight)"

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