Friday, April 5, 2013, 10:07 AM ET|Posted by Will Richmond
I'm pleased to present the 174th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. There's no question video is moving to streaming and electronic delivery, but DVDs still have plenty of life left. That's what Redbox is banking on to get a foothold with its new Redbox Instant service, as CEO Shawn Strickland explains in this interview. Both Colin and I think it's a smart, albeit risky, strategy given the inevitable downward trend in DVD usage.
I see part of DVD's durability as due to Hollywood's windowing practices. Because of the multi-billion pay-TV window, licensing to networks like HBO, Starz and EPIX, major studios delay the availability of movies in SVOD services. The intervening home video access continues to give DVDs life. Unless and until Hollywood abandons the pay-TV window, DVDs will continue to have life. And since Netflix has essentially abandoned DVDs, there's a big opportunity for Redbox.
However, Redbox Instant has another problem, which is that its streaming content selection today is terrible, as Colin explains. That means prospective subscribers have to determine whether its worth the $3/mo or so they're effectively paying for it on top of the DVD value which is worth around $4-$5/mo. Colin and I are both skeptical. Even if Redbox Instant doesn't fly, we both see DVDs being with us for a long time to come.
Listen in to learn more!
Reminder: Colin and I will be at NABShow next Mon. and Tues. in our booth SU12907. If you're there and have a moment, please stop by to say hi.
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Video Research Around the Web
- VAB report: TV still strong, especially in cluttered streaming world The Drum
- Millennials Are Tuning Into Live Online Video—and Live Video Ads OnlineVideo.net
- Internet-Connected TV Viewing Shows Continued Growth Mediapost
- New Netflix Data Reveals When Viewers Commit to TV Shows WSJ
- Upfront/Newfront Effect: High Value, Increased Spending Mediapost
- TDG: Satisfaction With SVOD Driving Millennials Away From Pay TV B&C
- Netflix ‘Monetization Gap’: Streamer Earns Less Per Hour Viewed Than Most TV Networks, Study Finds Variety
- IBC Survey: Consumers Abandoning Shows Due to Costs B&C