Feb 12
13
The music industry is one of the industries where word goes round like bush fire. Rumour had it that Coinstar has agreed to wait longer {58 day delay}, for the making of new Warner bros films. However, Coinstar who is the owner of Redbox DVD unit has not agreed to wait for longer.
This is attributed to the fact that there are no revised terms that have been agreed on between him and Warner bros. Coinstar’s spokeswoman, Marci Maule, confirmed that the 28 day delay on new films will expire on 31st January.
The cause of the standoff is not clear. However, an analyst with B. Riley and Co Eric Wold believes that Coinstar is more interested in making new releases. Moreover, Redbox limits the number of movies it offers and does not put more efforts in competing services including NFLX. The analyst who is based in San Francisco believes that the 28-day delay is an ideal option that Coinstar maybe interested in, in order to buy movie DVDs from third parties. He therefore anticipates that Redbox will not wait any longer since there is a way of getting the DVDs besides Warner bros.
Coinstar signaled resistance because the delay in release of new DVDs was a plan by movie studios to protect DVD sales. What’s more, buying DVDs from third parties is more cost effective. Other companies such as Netflix however agreed to the 58 day delay in release of new movies. Coinstar is highly operational with a total of 34,400 DVD rental kiosks in NY. It also has many deals with Paramount Pictures Studio, Lions Gate Entertainment Corp and Sony Pictures. Therefore, instead of waiting for long, Coinstar can simply get the DVDs for rental from these companies as soon as they are released by Warner bros and sell them to consumers.